Code Section 161 of the German Stock Corporation Act (AktG) (2005 - 2008)

31.05.2008

The management board and the supervisory board of Maschinenfabrik Berthold HERMLE AG declare in accordance with setion 161 AktG

The recommendations of the Government Commission on the German Corporate Governance Code are not observed. Our justification is that the Maschinenfabrik Berthold Hermle AG has developed its own corporate governance concept, which complies with the regulations of German Company Law and its already previously practised principles of an open information policy and has been put into practice within the rules of procedure of the Management Board and the Supervisory Board. In that respect, the mandatory requirements were complied with in full. The Management Board and the Supervisory Board do not consider the implementation of further recommendations of the Corporate Governance Code to be appropriate, especially in view of the market capitalisation of the company and the additional costs associated with such implementation.