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Terex increases offer price for Demag Cranes AG
Welcomes Demag Cranes recommendation to shareholders for acceptance
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Terex Corporation and Terex Industrial Holding AG are pleased to announce an agreement with Demag Cranes AG for a recommended offer to purchase the shares of Demag Cranes at an increased price of EUR 45.50 per share.

Terex, Terex Industrial Holding AG and Demag Cranes have also entered into a business combination agreement that confirms Terex's support for the strategy of Demag Cranes and its workforce as a part of the Terex group. As a result, the management and the supervisory boards of Demag Cranes have publicly announced that they will jointly recommend that the Demag Cranes shareholders accept the offer.

“We are pleased to have reached an agreement with the management of Demag Cranes that provides an excellent basis for the future joint success of Terex and Demag Cranes. Our businesses are highly complementary and the combination has compelling industrial logic for all of our collective stakeholders," said Ronald M. DeFeo, Terex Chairman and Chief Executive Officer. "Demag Cranes products are competitive and innovative. The company is professionally managed, with highly motivated staff, and Terex will draw on this for both Demag Crane's ongoing success and the future of Terex as a whole. We look forward to capitalizing upon our strengths and working with Demag Cranes' management and employees to continue to grow the business globally."

The increased price to be offered by Terex Industrial Holding AG of EUR 45.50 per share represents an approximately 25 percent premium to the closing share price of EUR 36.30 on April 29, 2011 and a 28 percent premium to the three-month volume-weighted average share price of EUR 35.56 as of April 29, 2011. The new offer price further represents a 53 percent premium to the last undisturbed share price prior to the speculation regarding possible takeover interest in Demag Cranes of EUR 29.65 on October 6, 2010. Terex believes the recommended offer at the increased price is very attractive to Demag Cranes' shareholders and in the best interest of both companies.
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