Following the Comprehensive Agreement concluded in August, the implementation agreements signed in November and the Volkswagen Extraordinary General Meeting held last week, Volkswagen Aktiengesellschaft recently took and completed the next important step towards the integrated automotive group with Porsche under the leadership of Volkswagen. They have taken 49.9% stake in Porsche AG costing them 3.9 billion Euros which is based on the enterprise value for Porsche AG.

sThe acquisition of the trading business of Porsche Holding Salzburg is planned for 2011, as well as the merger of Volkswagen AG and Porsche SE as conclusion to the creation of the integrated automotive group. The combination of the two companies follows a compelling strategic, industrial, and financial logic. For the Volkswagen Group, Porsche ideally complements the brand portfolio. The Stuttgart-based car maker will allow Volkswagen to further expand its position in the premium business, which offers particularly strong earnings. In turn, as an independent brand under the roof of the Volkswagen Group, Porsche will have the potential for significant additional growth.

Porsche AG, with a return sales of 10.3%, is the world's most profitable automobile manufacturer, which gives Volkswagen Group a sustained positive effect on its earning situation. Volkswagen's participation will be through its stake. The planned integration of Porsche in the Volkswagen Group and the associated closer cooperation will realize significant synergies on both the income and the cost side. As a result, the annual operating profit of the Volkswagen Group is expected to increase by some 700 million Euros in the long term.