The Vice-Minister of the Ministry of Water Resources of the People?s Republic of China, Mr. Zhang Jiyao, visits Herrenknecht.

November 30, 2004. Herrenknecht AG and Dr. Martin Herrenknecht have had good contacts with political decision makers in China for 17 years. Today, more than 40 micro and large-diameter machines made in Schwanau modernize tunnel systems for inner-city subway lines as well as water, oil, gas and sewage pipes in China. Right at the beginning of his two-week journey, the Vice-Minister of the Chinese Ministry of Water Resources, Mr. Zhang Jiyao, and his delegation paid a visit to Herrenknecht AG in Schwanau (South Germany). Dr. Martin Herrenknecht presented some of the project ?highlights? of the Herrenknecht AG to the government official and his delegation. He also gave the delegation background information on current large-scale projects as well as a guided tour of the production facilities and several large-diameter machines that will be delivered shortly.

The reason behind the Vice-Minister?s journey through Europe is the execution of one of the world?s largest infrastructure projects. After decades of comprehensive planning, China resumed the giant water supply project named ?South-to-North Water Diversion Project? in 2002. Beside the construction of giant dams, large-diameter tunnels need to cross some of the biggest rivers in China. Thus, the first crossings of the Yellow (Huanghe) river, the second-longest river in China with 5,464km, will begin shortly. Tunnel boring machines with a diameter of approximately 10m have to be provided, driving high-quality tunnels under the rivers to make the drinking water pipelines safely and cleanly cross the Yellow River.

After his visit to Schwanau, the Minister and his delegation will visit some large-scale tunnel projects in Europe to gain insight into the latest tunnelling technology. The markets in China and Asia are vital for Herrenknecht. Last but not least, due to the growing business with Asia, 2004 will be another successful financial year for Herrenknecht AG. Last year?s new order figures (2003: 343 million euros) could be surpassed for the seventh time in a row. In the summer of 2004, the limit of ?400 million euros? for incoming order was already exceeded.