CMS Hasche Sigle advises K+S on public agreement with the states of Hesse and Thuringia on potash production in Werra region

On 4 February 2009 Gerd Grimmig, member of the board of executive directors of K+S Aktiengesellschaft and representing K+S KALI GmbH, and the ministers of the environment for Hesse and Thuringia, Wilhelm Dietzel and Volker Sklenar, signed a public agreement aiming at harmonising sustainable potash production and securing jobs whilst protecting the environment for future decades.

K+S was advised by CMS Hasche Sigle during the negotiations with the ministries.

The agreement establishes the framework for the implementation of the extensive measures for water protection developed by K+S with investment volume totalling up to EUR 360 million. Reducing the occurrence of saline water and the level of water hardness at the Kali works in Hesse and Thuringia, and optimising the waste disposal channels, will gradually reduce the environmental impact and use of resources. The thirty-year term of the agreement provides long-term security for planning and investing for K+S. It also secures jobs today and creates new jobs and training positions which contribute to the value of the region.

By the end of May 2009, K+S will present an overall strategy to eliminate disposing of liquid residue by pumping and the environmental impact in the rivers Werra and Weser, in particular resulting from the injection of saline water, should be further reduced. K+S will develop a detailed set of measures based on this strategy by the end of October and discuss it with the states of Hesse and Thuringia. This shall constitute the foundation for the pending approval process. The Round Table Werra/Weser and Kali productions will continue to be informed on the coordination of the overall strategy and the measures. The opinions expressed by the Round Table will be taken into consideration by the parties.

The K+S Group is one of the world's leading suppliers of standard and speciality fertilizers, plant care and salt products. The K+S Group has 12,000 employees; in 2007 they achieved turnover of EUR 3.3 billion. K+S is the only German raw materials company listed on the German Stock Index, DAX.

Advisers CMS Hasche Sigle:
Dr Fritz von Hammerstein, Environment

Contact:
Dr Fritz von Hammerstein
Tel.: +49 (0)40 37630-318
E-mail: Fritz.Hammerstein@cms-hs.com