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.

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