KHDH Khd Humboldt Wedag International Ltd. (MM)

HONG KONG, March 29 /PRNewswire-FirstCall/ -- KHD Humboldt Wedag International Ltd. ("KHD") (NASDAQ:KHDH) announces that it has entered into an arrangement agreement (the "Arrangement") with Sasamat Capital Corporation ("Sasamat") (SSALF.PK), in which Sasamat will amalgamate with a wholly owned subsidiary of KHD under the Canada Business Corporation Act ("CBCA"). Currently, Sasamat is a 59 percent subsidiary of KHD who in turn owns approximately 30 percent of KHD's German operations. Shareholders of Sasamat will exchange their Sasamat shares for shares of KHD (the "KHD Shares") on the basis of 0.111 KHD Shares for each Sasamat Share held, subject to adjustment based upon any change greater than 2 percent in the value of the KHD shares that may have occurred as of the last trading day prior to the effective date of the Arrangement. The effective date of the Arrangement is scheduled to occur on May 30, 2007. This reflects a purchase price of CDN$5.19 per Sasamat Share and US$40.36 per KHD Share. The Arrangement requires court approval under the CBCA and approval by the shareholders of Sasamat, and is also subject to various conditions customary for transactions of this type. Sasamat and KHD will apply to the Supreme Court of British Columbia to obtain an interim order providing, among other things, for the calling and holding of the special meeting of shareholders of Sasamat. The Arrangement is to be approved by two-thirds of the votes cast by Sasamat shareholders and a majority of the votes cast by the minority shareholders. Sasamat expects to hold its special general meeting on May 22, 2007. Further information concerning the Arrangement can be obtained in the Sasamat circular to be filed on SEDAR at http://www.sedar.com/. About KHD Humboldt Wedag International Ltd. KHD Humboldt Wedag International Ltd. (the "Company") owns companies that operate internationally in the industrial plant engineering and equipment supply industry, and specializes in the cement, coal and mineral industries. To obtain further information on the Company, please visit our website at http://www.khdhumboldt.com/ Contact Information: Allen & Caron Inc Rene Randall Joseph Allen (investors) KHD Humboldt Wedag International Ltd 1 (212) 691-8087 1 (604) 683-8286 or Len Hall (media) 1 (949) 474-4300 DATASOURCE: KHD Humboldt Wedag International Ltd. CONTACT: Investors, Joseph Allen, +1-212-691-8087, , or Media, Len Hall, +1-949-474-4300, , both of Allen & Caron Inc, for KHD Humboldt Wedag International Ltd.; or Rene Randall of KHD Humboldt Wedag International Ltd., +1-604-683-8286, Web site: http://www.khdhumboldt.com/

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