DGAP-News: Daldrup & Söhne (Daldrup) AG

CORPORATE NEWS

Daldrup & Söhne AG: Geothermal power plant projects Landau and Taufkirchen approach launch

- Strong domestic and international demand for drilling services continues

- Contracts with Management Board members renewed for five years

- Finance expert Stephan Temming joins the company

Grünwald / Ascheberg, Germany, August 30, 2017 - Daldrup & Söhne AG's (ISINE0007830572) geothermal power plant projects in Landau in southwestern Germany and Taufkirchen near Munich are rapidly advancing towards the start of trial operations. The company's volume of orders has further increased as of the end of August (end of May 2017: 65 million Euros).

Geothermal power Landau to start trial operations soon
Trial operations for the Landau geothermal power plant are due to start shortly in coordination with the relevant regulatory authorities. geox GmbH, the operators of the plant and a subsidiary of Daldrup & Söhne AG, has completed the renovation of the plant. All of the site's individual components have already been tested successfully. CEO Josef Daldrup: "The purpose of the trial operations is to operate the whole plant and to synchronize the components. We are confident that we will be able to quickly complete these steps during the trial run so that we can subsequently start regular operations."

Heat exchanger for Taufkirchen power plant to be delivered in September
The company expects the first heat exchanger for the Taufkirchen power plant to be delivered in September by manufacturers Kelvion. Following installation of the heat exchanger, trial operations are expected to be concluded by the end of 2017, to be followed by the start of regular operations. With heat provision to the communities of Taufkirchen and Oberhaching the economic priority for the winter months, the second heat exchanger is projected to be operational in spring 2018. The plant can then move towards operating at full capacity step by step.

Strong domestic and international demand for drilling services continues unabated
Daldrup has completed large geothermal drilling projects in the Netherlands, Belgium and Germany, with similar projects to be completed shortly in these countries. In Belgium, the company is drilling the third of five doublets for Vito N.V. with drillings no. four and five already commissioned on demand. The political climate in Belgium is shifting in favour of geothermal energy, which is seen as a high-potential building bloc of the country's strategy to increasingly use renewable energies so that old nuclear power plants can be decommissioned.

In the Netherlands where Daldrup is the Engineering-Procurement-Construction partner of Nature's Heat B.V., Kwintsheul, the company has sunk the drilling of a doublet with a length of around 3,000 metres. Daldrup is also building the heating centre and the local heating distribution network, with construction to be completed shortly. Nature's Heat is an association of ten greenhouse operators in the Netherlands' southern region; they also subsequently buy the geothermal heat. Two follow-up projects with similar requirements are currently being negotiated with new potential customers.

The Puchheim geothermal project for a geothermal power station to be developed with the Bavarian city of Puchheim is approaching the realization stage as preparations have been underway successfully. The plan is to start drilling for thermal water in 2018. The plant is expected to have a thermal output of 4.4 MW, with a contract for district heating deliveries with Bayernwerk Natur already signed. Based on regionally established geological parameters, the parties to the contract are assuming a yield of 80 liters/minute and a temperature of around 85 degrees Celsius. Daldrup & Söhne AG will conduct the drilling, which is expected to go to a depth of around 2,300 meters. The extracted geothermal energy is to be fed into Puchheim's existing district heating infrastructure.

Contracts with Management Board members renewed for 5 years
The Supervisory Board of Daldrup & Söhne AG has renewed the contracts with CEO Josef Daldrup and board members Andreas Tönies and Peter Maasewerd for a period of five years until July 31, 2022. The original contracts had run until July 31, 2017. The move ensures continuity in the company's management as well as in existing customer relationships. The company will continue to benefit from long years of know-how in the drilling and power plant sectors.

As of July 1, 2017, Stephan Temming has joined Daldrup & Söhne AG to support the Management Board in the areas of Finance, Controlling and Corporate Development. The business graduate has more than 23 years of professional experience in the banking and finance sectors. He joins the company from DZ BANK AG Deutsche Zentral-Genossenschaftsbank where he was an authorized representative and department director and was responsible for the bank's business with mid-sized companies.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 60 years is a specialist provider of drilling and environmental services and ranks as one of the leading companies in Germany. Its activities are divided into the business divisions Geothermics, Raw Materials & Exploration, Water Extraction as well as Environment, Development & Services (EDS). The Geothermics business division provides drilling services for near-surface geothermics (especially geothermal probes of heat pumps), along with drilling services for deep geothermics up to 6000 m, in order to utilise the geothermal energy accessible in this way for electricity and/or heat generation. In the Raw Materials and Exploration business division, the bores made by Daldrup & Söhne AG serve for exploring and developing fossil fuel deposits (especially coal and gas) as well as mineral resources and ores (e.g. copper and gold). The Water Extraction business division comprises well construction for the extraction of drinking, service, curative, mineral, boiler-feed or cooling water as well thermal brine. The Environment, Development & Services (EDS) business division comprises special environmental engineering services such as the hydraulic clean-up of contaminated sites, the drilling of gas extraction wells for recovering waste dump gas, the provision of groundwater quality measuring points or the installation of water purification plants.

The majority stake in Geysir Europe GmbH also gives the Daldrup Group its own fields of experience in the exploration of geothermal energy in the Bavarian Molasse Basin and in the Upper Rhine Plain. The existing project management and power station expertise means that all stages of value creation can be covered for a deep geothermics project.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment in the open market of the Frankfurt Stock Exchange).

Disclaimer
This publication represents neither an offer for sale nor a call to submit a tender for the purchase or underwriting of securities. This publication and the information it contains is not intended for direct or indirect dissemination in or within the United States of America ("USA"), Canada, Australia or Japan.

Press & Investor Relations Contact:

Daldrup & Söhne AG
Falk v. Kriegsheim
Phone +49 (0)2593-9593-29
Fax +49 (0)2593-9593-60
Bavariafilmplatz 7 ir@daldrup.eu
82031 Grünwald/Geiselgasteig www.daldrup.eu

Fon +49 (0)2593-9593-29
Fax +49 (0)2593-9593-60
Bavariafilmplatz 7 ir@daldrup.eu
82031 Grünwald/Geiselgasteig www.daldrup.eu