Nuremberg – The Management Board of Nuremberg-based LEONI AG has, with the approval of the Supervisory Board, decided to use the current authorised capital to carry out an increase in capital. The share capital of LEONI is to be increased from the current EUR 19.8 million to EUR 29.7 million by issuing 3.3 million new shares. A syndicate of banks led by Commerzbank will offer the new shares to the shareholders of LEONI AG for subscription on a 2-for-1 basis in the period from 25 June to 9 July 2004. Nuremberg-based Groga Beteiligungsgesellschaft mbH, the largest shareholder in LEONI AG holding 20 percent of the share capital, intends to participate fully in the capital increase and to subscribe directly to the new shares in the number to which it is entitled. The subscription price has been fixed at EUR 37.50 per share applying a discount of a size usual in the market. The new shares are fully entitled for dividend for 2004. LEONI intends to use the proceeds from the issue primarily to fund acquisitions as well as for future large-scale projects of the Wiring Systems Division.

LEONI already said at time of this year’s annual general meeting held at the end of May that the company would probably carry out an increase in capital associated with further growth. The Company is currently considering projects in the Wiring Systems Division aimed at gaining new customers and developing other regions as well as potential business acquisitions, especially so in specific market segments of the European cable industry. The funds made available by the increase in capital will provide LEONI with the greatest possible flexibility to exploit opportunities and development options as they arise, even at short notice.

The information contained herein does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States unless they are registered under applicable law or exempt from registration. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.