Industry News

Delay In Acquisition of Sauer-Danfoss by Danfoss A/S

January 8, 2010

Danfoss A/S said that it has delayed the launch of its intended cash tender offer for all of the outstanding shares of common stock of Sauer-Danfoss Inc. not already owned by Danfoss and its subsidiaries. Danfoss and its subsidiaries currently own approximately 75.7% of the outstanding shares of Sauer-Danfoss common stock.

Danfoss announced on December 22, 2009, its intention to commence an offer for all shares held by the public minority shareholders of Sauer-Danfoss at $10.10 per share in cash, without interest and less any required withholding tax. The stake of approximately 24.3% not owned by Danfoss and its subsidiaries would be valued at approximately $118,750,000 at the $10.10 per share offer price. Danfoss sad it has decided to delay the commencement of the offer because it is discussing “certain matters with respect to the offer (not related to the terms of the offer)” with the Special Committee of the Board of Directors of Sauer-Danfoss.

Danfoss said it is seeking to resolve these matters with the Special Committee expeditiously and plans to commence the offer as soon as practicable, possibly as soon as the week ending January 15, 2010.

In its December 22, 2009 announcement, Danfoss said its sole interest was in acquiring the shares of Sauer-Danfoss that it does not already own and it has no interest in a disposition of its controlling interest in Sauer-Danfoss or in any strategic transaction involving Sauer-Danfoss, other than the proposed offer.