Heraeus Holding Gmbh

Prospectus dated 18 May 2010 HERAEUS FINANCE GMBH (incorporated with limited liability in Hanau, Germany )

€ % Notes due 2017 unconditionally and irrevocably guaranteed by HERAEUS HOLDING GMBH (incorporated with limited liability in the Federal Republic of Germany ) Issue price: % The € % Notes due 2017 (the Notes ) will be issued on 28 May 2010 by Heraeus Finance GmbH (the Issuer ) and will be unconditionally and irrevocably guaranteed by Heraeus Holding GmbH (the Guarantor ). The Issuer may, at its option, redeem all, but not some only, of the Notes at any time at par plus accrued interest in the event of certain tax changes as set out in § 5(2) of the Terms and Conditions. This prospectus has been approved by the Commission de Surveillance du Secteur Financier (the CSSF ) in its capacity as competent authority pursuant to the Luxembourg Act dated 10 July 2005 on prospectuses for securities (the Luxembourg Prospectus Act ), which implements Directive 2003/71/EC (the Prospectus Directive ). Application has been made to the Luxembourg Stock Exchange for the listing of the Notes on the Official List of the Luxembourg Stock Exchange and to trading of the Notes on the Euro MTF of the Luxembourg Stock Exchange. The Luxembourg Stock Exchange's Euro MTF is not a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC). The Issuer has requested the CSSF to provide the competent authorities in Austria, Germany, and The Netherlands with a certificate of approval attesting that the Prospectus has been drawn up in accordance with the Luxembourg Prospectus Act. The Guarantor's long-term debt and short-term debt has been rated "BBB+" and "A-2", respectively, by Standard & Poor's Rating Services, a Division of the McGraw-Hill Companies Inc. ( Standard & Poor's ). The Guarantor has been rated "Baa1" by Moody's Investors Service, Inc. The Notes will be rated by Standard & Poor's. A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation. The Notes will initially be represented by a temporary global note without interest coupons which will be deposited with a common safe-keeper for Euroclear Bank SA/NV and Clearstream Banking, société anonyme. Interests in the temporary global note will be exchangeable for interests in a permanent global note without interest coupons upon certification as to non-U.S. beneficial ownership. The issue price, the offer amount, the interest rate, the issue proceeds and the yield of the issue will be included in the Pricing Notice (as described under " Subscription, Offer and Sale " beginning on page 75) which will be published on the website of the Luxembourg Stock Exchange (www.bourse.lu) prior to the issue date of the Notes. An investment in Notes involves certain risks. Prospective investors should have regard to the factors described under the heading "Risk Factors" beginning on page 18.

Joint Lead Managers Deutsche Bank HSBC

Co-lead managers

Commerzbank J.P. Morgan

The Royal Bank of Scotland UniCredit Bank

RESPONSIBILITY STATEMENT

The Issuer and the Guarantor (the Responsible Person(s) ) accept responsibility for the information contained in this Prospectus. To the best of the knowledge of the Issuer and the Guarantor (each having taken all reasonable care to ensure that such is the case) the information contained in this Prospectus is in accordance with the facts and does not omit anything likely to affect the import of such information.

NOTICE

The only persons authorised to use this Prospectus in connection with the offering of the Notes are the Issuer, the Guarantor and the Managers (as described under " Subscription, Offer and Sale " beginning on page 75).

This Prospectus is to be read in conjunction with all documents which are deemed to be incorporated herein by reference (see " Documents Incorporated by Reference " beginning on page 82). This Prospectus should be read and construed on the basis that such documents are incorporated and form part of the Prospectus.

The Managers have not independently verified the information contained herein. Accordingly, no representation, warranty or undertaking, express or implied, is made and no responsibility or liability is accepted by the Managers as to the accuracy or completeness of the information contained or incorporated in this Prospectus.

No person is or has been authorised by the Issuer or the Guarantor to give any information or to make any representation not contained in or not consistent with this Prospectus or any other information supplied in connection with the offering of the Notes and, if given or made, such information or representation must not be relied upon as having been authorised by the Issuer, the Guarantor or any of the Managers.

Neither this Prospectus nor any other information supplied in connection with the offering of the Notes (a) is intended to provide the basis of any credit or other evaluation or (b) should be considered as a recommendation by the Issuer, the Guarantor or any of the Managers that any recipient of this Prospectus or any other information supplied in connection with the offering of the Notes should purchase any Notes. Each investor contemplating purchasing any Notes should make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness, of the Issuer and/or the Guarantor. Neither this Prospectus nor any other information supplied in connection with the offering of the Notes constitutes an offer or invitation by or on behalf of the Issuer or the Guarantor or any of the Managers to any person to subscribe for or to purchase any Notes.

Neither the delivery of this Prospectus nor the offering, sale or delivery of the Notes shall in any circumstances imply that the information contained herein concerning the Issuer and/or the Guarantor is correct at any time subsequent to the date hereof or that any other information supplied in connection with the offering of the Notes is correct as of any time subsequent to the date indicated in the document containing the same. The Managers expressly do not undertake to review the financial condition or affairs of the Issuer or the Guarantor during the life of the Notes or to advise any investor in the Notes of any information coming to their attention. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended, (the US Securities Act ) and are subject to U.S. tax law requirements. Subject to certain exceptions, the Notes may not be offered, sold or delivered within the United States or to U.S. persons. For a further description of certain restrictions on the offering and sale of the Notes and on distribution of this document, see "Subscription, Offer and Sale " beginning on page 75.

This Prospectus does not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such jurisdiction. The distribution of this Prospectus and the offer or sale of Notes may be restricted by law in certain jurisdictions. The Issuer, the Guarantor and the Managers do not represent that this Prospectus may be lawfully distributed, or that the Notes may be lawfully offered, in compliance with any applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption available thereunder, or assume any responsibility for facilitating any such distribution or offering. In particular, except as indicated in the " Subscription, Offer and Sale – Public Offer " section beginning on page 75, no action has been taken by the Issuer, the Guarantor or the Managers which is intended to permit a public offering of the Notes or the distribution of this Prospectus in any jurisdiction where action for that purpose is required. Accordingly, no Notes may be offered or sold, directly or indirectly, and neither this Prospectus nor any advertisement or other offering material may be distributed or published in any jurisdiction, except under circumstances that will result in compliance with any applicable laws and regulations. Persons into whose possession this Prospectus or any Notes may come must inform themselves about, and observe, any such restrictions on the distribution of this Prospectus and the offering and sale of Notes. In particular, there are restrictions on the distribution of this Prospectus and the offer or sale of Notes in the United States, the United Kingdom and the European Economic Area, see " Subscription, Offer and Sale " beginning on page 75.

The Notes are intended to be held in a manner which will allow Eurosystem eligibility. This means that the Notes are intended upon issue to be deposited with one of Euroclear or Clearstream, Luxembourg as common safekeeper and does not necessarily mean that the Notes will be recognised as eligible collateral for Eurosystem monetary policy and intra-day credit operations by the Eurosystem either upon issue or at any or all times during their life. Such recognition will depend upon satisfaction of the Eurosystem eligibility criteria.

IN CONNECTION WITH THE ISSUE OF THE NOTES, HSBC BANK PLC AS STABILISING MANAGER (THE "STABILISING MANAGER") (OR PERSONS ACTING ON BEHALF OF THE STABILISING MANAGER) MAY OVER-ALLOT NOTES OR EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL. HOWEVER, THERE IS NO ASSURANCE THAT THE STABILISING MANAGER (OR PERSONS ACTING ON BEHALF OF THE STABILISING MANAGER) WILL UNDERTAKE STABILISATION ACTION. ANY STABILISATION ACTION MAY BEGIN ON OR AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE OF THE TERMS OF THE OFFER OF THE NOTES IS MADE AND, IF BEGUN, MAY BE ENDED AT ANY TIME, BUT IT MUST END NO LATER THAN THE EARLIER OF 30 DAYS AFTER THE ISSUE DATE OF THE NOTES AND 60 DAYS AFTER THE DATE OF THE ALLOTMENT OF THE NOTES. ANY STABILISATION ACTION OR OVER- ALLOTMENT MUST BE CONDUCTED BY THE STABILISING MANAGER (OR PERSONS ACTING ON BEHALF OF THE STABILISING MANAGER) IN ACCORDANCE WITH ALL APPLICABLE LAWS AND RULES.

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CONTENTS

Page

Responsibility statement ...... 2 Notice ...... 2 Summary...... 5 Summary (German translation)...... 11 Risk Factors ...... 18 Terms and Conditions of the Notes...... 26 Guarantee...... 49 Description of the Issuer ...... 55 Description of the Guarantor...... 58 Taxation ...... 71 Subscription, Offer and Sale ...... 75 General Information...... 80 Documents Incorporated by Reference...... 82 Annex 1 (Financial information concerning the Guarantor)...... 84

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SUMMARY

This Summary must be read as an introduction to this Prospectus and any decision to invest in the Notes should be based on a consideration of this Prospectus as a whole, including the documents incorporated by reference. Following the implementation of the relevant provisions of the Prospectus Directive in each Member State of the European Economic Area, no civil liability will attach to the Responsible Persons in any such Member State in respect of this Summary, including any translation hereof, unless it is misleading, inaccurate or inconsistent when read together with the other parts of this Prospectus. Where a claim relating to information contained in this Prospectus is brought before a court in a Member State of the European Economic Area, the plaintiff may, under the national legislation of the Member State where the claim is brought, be required to bear the costs of translating this Prospectus before the legal proceedings are initiated .

Words and expressions defined in the Terms and Conditions of the Notes (the Terms and Conditions ) beginning on page 26 shall have the same meanings in this Summary.

SUMMARY OF THE TERMS AND CONDITIONS AND GENERAL INFORMATION

Issuer: Heraeus Finance GmbH

Guarantor: Heraeus Holding GmbH

Joint Lead Managers: Deutsche Bank AG, London Branch HSBC Bank plc

Co-Lead Managers: Commerzbank Aktiengesellschaft J.P. Morgan Securities Ltd. The Royal Bank of Scotland plc UniCredit Bank AG

Principal Paying Agent: Deutsche Bank Aktiengesellschaft

Description of Notes: € % Guaranteed Notes due 2017 (the Notes ), to be issued by the Issuer on 28 May 2010 (the Issue Date ).

Determination of Principal Amount, The final issue price, the aggregate principal amount, Issue Price and other terms: the interest rate, the issue proceeds, the commissions, the yield and the expenses of the issue will be included in the pricing notice which will be published on the website of the Luxembourg Stock Exchange (www.bourse.lu) on or prior to the issue date of the Notes.

Interest: The Notes will bear interest from (and including) 28 May 2010 to (but excluding) 29 May 2017 at the rate of % per annum. Interest shall be payable in arrear on 29 May in each year, commencing on 29 May 2011.

Optional Redemption by Issuer for tax If, as a result of any change in, or amendment to, the reasons laws or regulations prevailing in Germany, certain

withholding taxes are levied on payments of principal or interest in respect of the Notes and the Issuer is obliged to pay Additional Amounts (as defined in § 7 of the Terms and Conditions), the Issuer may redeem the Notes in whole, but not in part (§ 5(2) of the Terms and Conditions).

Events of Default: Events of Default under the Notes include non-payment of principal or interest for 30 days, breach of other obligations under the Notes (which breach is not remedied within 30 days), the Issuer or the Guarantor defaults on certain other payment obligations and certain events related to insolvency or winding up of the Issuer or the Guarantor (§ 9 of the Terms and Conditions).

Negative Pledge: The Terms and Conditions contain a negative pledge provisions (§ 2(2) and (4) of the Terms and Conditions).

Change of Control: The Terms and Conditions contain a change of control provision (§ 5(3) of the Terms and Conditions).

Guarantee: The Guarantor has given its unconditional and irrevocable guarantee for the due payment of principal of, and interest on, and any other amounts payable under the Notes.

Status of the Notes: The Notes will constitute direct, unconditional, unsubordinated and (subject to the negative pledge provisions (§ 2(2) and (4) of the Terms and Conditions)) unsecured obligations of the Issuer and will rank pari passu among themselves and (save for certain obligations required to be preferred by law) equally with all other unsecured obligations (other than subordinated obligations, if any) of the Issuer, from time to time outstanding.

Resolutions of Noteholders: The Conditions of the Notes contain provisions for resolutions of Noteholders in accordance with the German Bond Act ( Schuldverschreibungsgesetz ) (§ 13 of the Terms and Conditions). These provisions permit defined majorities to bind all Noteholders including Noteholders who did not vote and Noteholders who voted in a manner contrary to the majority.

Withholding Tax and Additional The Issuer will pay such Additional Amounts as may be Amounts: necessary in order that the net payment received by each Noteholder in respect of the Notes, after withholding for any taxes imposed by tax authorities in Germany upon payments made by or on behalf of the Issuer in respect of the Notes, will equal the amount which would have been received in the absence of any such withholding taxes, subject to customary exceptions, as described in § 7 of the Terms and Conditions.

Listing and admission to trading: Application has been made to the Luxembourg Stock Exchange for the listing of the Notes on the Official List of the Luxembourg Stock Exchange and admission to trading on the Euro MTF operated by the Luxembourg Stock Exchange. The Luxembourg Stock Exchange's Euro MTF is not a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC).

Governing Law: The Notes will be governed by German law.

Form: The Notes will be issued in bearer form in denominations of € 1,000.

Credit Ratings: The Guarantor's long-term debt and short-term debt has been rated "BBB+" and "A-2", respectively, by Standard & Poor's Rating Services, a Division of the McGraw-Hill Companies Inc, ( Standard & Poor's). The Guarantor has been rated "Baa1" by Moody's Investors Service, Inc. The Notes will be rated by Standard & Poor's. A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation.

Selling Restrictions: The Notes have not been and will not be registered under the US Securities Act and, subject to certain exceptions, may not be offered or sold within the United States. The Notes may be sold in other jurisdictions only in compliance with applicable laws and regulations. See "Subscription, Offer and Sale " beginning on page 75.

Public Offer: The Notes may be offered to the public in each of Austria, Germany, Luxembourg and The Netherlands. For provisions and restrictions relating to offers of Notes to the public in the European Economic Area, see "Subscription, Offer and Sale – Public Offer ".

Use of Proceeds: The net proceeds of the issue of the Notes will be lent by the Issuer to the Guarantor or other group companies which will use the monies for general corporate purposes.

SUMMARY OF THE RISK FACTORS The Notes There are certain factors which are material for the purpose of assessing the market risks associated with the Notes. These are set out under " Risk Factors " beginning on page 18 and include the fact that the Notes may not be a suitable investment for all investors as well as market price risks, interest rate risks, inflation risks, taxation risks, liquidity risks, the risk of early redemption for tax reasons, the risk of changes to the terms and conditions because of a noteholder resolution or a change in law.

The Issuer The Issuer is a funding vehicle for the Guarantor and other group companies (the Heraeus Group ). As such, it raises finance through the issue of notes and on-lends monies to the Guarantor or other companies within the Heraeus Group by way of intra-group loans. In the event that the Guarantor or, as the case may be, another group company, fails to make a payment under any loan granted to the Guarantor or a group company, the Issuer may not be able to meet its payment obligations under the Notes issued by it.

The Guarantor There are certain factors that may affect the Guarantor's ability to fulfil its obligations under the Guarantee. These are also set out under " Risk Factors " beginning on page 18 below and include the following primary risks: market risks, strategic risks, operational risks, procurement risks, precious metals trading risks, risks concerning healthcare reforms, foreign exchange risks, liquidity riks, investment risks, risks concerning acquisitions and divestments, legal risks, risks concerning key employees, risks concerning intellectual property rights, risks concernin information technology, environmental risks, risks concerning the regulatory environment, risks concerning corporate credit ratings, risks concerning new product developments and production, country risks.

SUMMARY OF THE DESCRIPTION OF THE ISSUER

General Information Heraeus Finance GmbH (the Issuer ) is a limited liability company incorporated under German law. The Issuer is registered in the commercial register of the local court of Hanau under the register number HRB 93178. The Issuer's address and registered office is at Heraeusstraße 12-14, 63450 Hanau, Germany. The issued share capital of the Issuer amounts to € 25,000. The Issuer is fully owned by the Guarantor, i.e. Heraeus Holding GmbH. The management body of the Issuer is its board of management consisting of Dr. Frank Heinricht and Jan Rinnert.

Corporate Purpose The Issuer is a funding vehicle for the Heraeus Group. As such, it raises funds for example through the issue of notes and on-lends it to the Guarantor or other group companies. In the future, it may raise further funds and on-lend monies to companies within the Heraeus Group by way of intra-group loans.

SUMMARY OF THE DESCRIPTION OF THE GUARANTOR

General Information Heraeus Holding GmbH (the Guarantor ) is a limited liability company incorporated under German law. It is registered in the commercial register of the local court of Hanau under the register number HRB 3364. The Guarantor's address and registered office is at Heraeusstraße 12-14, 63450 Hanau, Germany. Its issued share capital amounts to € 210,000,000. The Guarantor is owned by Einhorn Verwaltungsgesellschaft mbH and approximately 185 individual shareholders.

Corporate purpose The Guarantor is the parent company of the Heraeus Group, a globally active precious metals and technology group. The Guarantor is responsible for the Heraeus Group’s overall management. The Heraeus Group's fields of business include precious metals, sensors, biomaterials and medical products, dental products, as well as quartz glass and specialty light sources.

Organisational structure and business overview The Guarantor is the ultimate parent company of the Heraeus Group. The Heraeus Group is currently organised in six business segments, each business segment is organised by a separate legal entity (each a Managing Company ). Some but not all of the Managing Companies are linked to the Guarantor by a domination and profit and loss transfer agreement ( Beherrschungs- und Ergebnisabführungsvertrag ). Most of the foreign affiliates are held by an intermediate holding company. The Guarantor also fully owns the Issuer as well as three real estate property holding companies. The Managing Companies, together with the respective operational dedicated affiliates, represent the six main business segments of the Heraeus Group as follows:

• W. C. Heraeus GmbH (W. C. Heraeus) is responsible for the business segment precious metals.

• Heraeus Electro-Nite International N.V. (Heraeus Electro-Nite) is responsible for the business segment sensors.

• Heraeus Kulzer GmbH (Heraeus Dental) is responsible for the business segment dental products.

• Heraeus Medical GmbH (Heraeus Medical) is responsible for the business segment biomaterials and medical products.

• Heraeus Quarzglas GmbH & Co KG (Heraeus Quarzglas) is responsible for the business segment quartz glass.

• Heraeus Noblelight GmbH (Heraeus Noblelight) is responsible for the business segment specialty light sources.

Supervisory board and management The Guarantor has a Supervisory Board which consists of 12 members, the Chairman of which is Dr. Jürgen Heraeus. The management body of the Guarantor is its board of management which consists of Dr. Frank Heinricht (Chairman) and Jan Rinnert.

Business Overview The Guarantor The Guarantor acts as the holding company for the Heraeus Group. It is, in addition to the functions of the other departments of the Guarantor (e.g. controlling, tax, group communication, accounting, legal, corporate development and internal coporate auditing) responsible for the financial management of the Heraeus Group which includes in particular the following activities: borrowing for the Heraeus Group, liquidity management for the whole Heraeus Group, currency management for the whole Heraeus Group and risk management for the whole Heraeus Group.

The Heraeus Group On an operational level the Heraeus Group can be divided in the following six main business segments: (i) precious metal; (ii) sensors; (iii) dental products; (iv) biomaterials and medical products; (v) quartz glass; and (vi) specialty light sources.

Precious Metals Business Segment – W. C. Heraeus The precious metals business segment processes the precious metals gold and silver, platinum group metals, and special metals, primarily to produce industrial products. A global network of companies in Europe, North America, Asia, and Africa includes production facilities for all phases of precious metals production and refining. W. C. Heraeus provides services and products throughout the precious

metals cycle. The principal purchasers of the precious metals business segment's products operate in the environmental, mobility, communications, and energy sectors, as well as the health care industry. Sensors Business Segment – Heraeus Electro-Nite The sensors business segment focuses on sensor and measurement systems for the steel, aluminum, and foundry industries. The business segment produces and markets sensors from global manufacturing and sales facilities on every continent. Dental Products Business Segment – Heraeus Dental The dental products business segment, a single-source provider of prosthetics and systems for the conservation and restoration of natural teeth, has an extensive range of products for dental laboratories and dentists. Biomaterials and Medical Products Business Segment – Heraeus Medical The biomaterials and medical products business segment concentrates on medical products for orthopedic surgery as well as traumatology and biosurgery. It develops, produces, and globally markets biomaterials used to anchor joint prostheses to bone and to stabilize spinal fractures. Quartz Glass Business Segment – Heraeus Quarzglas The quartz glass business segment is a materials specialist for the manufacture and processing of high-purity quartz glass. It excels in all key processes for producing different quartz glass types for the semiconductor and telecommunications industries as well as applications for the optical, chemical, and lamp industries. Specialty Light Sources Business Segment – Heraeus Noblelight Specialty Light Sources business segment focuses on special lamps with wavelengths from ultraviolet to infrared for industrial, scientific, and medical applications. With locations in Germany, the United Kingdom, China, and the USA, the segment manufactures lamps for analytical measurement technology and the printing industry, infrared emitters for industrial heating processes, arc and flash lamps, and products for water disinfection and air treatment, as well as sun simulation and photochemistry with a high level of vertical integration.

Selected financial information The following table sets out selected financial information relating to the Guarantor, extracted from the audited consolidated financial statements and the group management report of the Guarantor for the financial year ending 31 December 2009. These consolidated financial statements and the group management report have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU.

Selected key financial indicators for the Heraeus Group

2009 2008

in € million in € million Change in %

Product revenue 2,586 2,920 - 11.4 Precious metals trading revenue 13,634 12,994 + 4.9 Earnings before interest and taxes (EBIT) 171 275 -37.7 Net income 118 168 - 29.8 Cash flow from operating activities 131 459 - 71.4 Total assets 2,929 2,856 +2.5 Shareholders' equity 1,684 1,586 + 6.2 Equity-to-assets ratio in % 58% 56% -

SUMMARY (GERMAN TRANSLATION)

ZUSAMMENFASSUNG

Diese Zusammenfassung ist als Einleitung zu diesem Prospekt zu lesen, und jede Entscheidung hinsichtlich einer Anlage in die Schuldverschreibungen sollte auf Grundlage des gesamten Prospekts, einschließlich der durch Verweis einbezogenen Dokumente, getroffen werden. Im Anschluss an die Umsetzung der maßgeblichen Bestimmungen der Prospektrichtlinie in allen Mitgliedstaaten des Europäischen Wirtschaftsraums können diejenigen Personen, die in einem dieser Mitgliedstaaten die Verantwortung für diese Zusammenfassung, einschließlich ihrer Übersetzung, übernommen haben, nur dann zivilrechtlich haftbar gemacht werden, wenn diese irreführend, unrichtig oder widersprüchlich ist, wenn sie zusammen mit den anderen Teilen dieses Prospekts gelesen wird. Für den Fall, dass vor einem Gericht in einem Mitgliedstaat des Europäischen Wirtschaftsraums Ansprüche aufgrund der in diesem Prospekt enthaltenen Angaben geltend gemacht werden, könnte der Kläger in Anwendung der Rechtsvorschriften des Mitgliedstaates, in dem die Ansprüche geltend gemacht werden, die Kosten für die Übersetzung dieses Prospekts vor Prozessbeginn zu tragen haben.

Die in den auf Seite 26 beginnenden Emissionsbedingungen der Schuldverschreibungen (die Emissionsbedingungen ) definierten Begriffe und Ausdrücke haben in dieser Zusammenfassung jeweils die gleiche Bedeutung.

ZUSAMMENFASSUNG DER BEDINGUNGEN UND ALLGEMEINE INFORMATIONEN

Emittentin: Heraeus Finance GmbH

Garantin: Heraeus Holding GmbH

Gemeinsame Konsortialführer ( Joint Deutsche Bank AG, London Branch Lead Managers ): HSBC Bank plc Commerzbank Aktiengesellschaft Konsortialmitglieder ( Co-Lead Managers ): J.P. Morgan Securities Ltd. The Royal Bank of Scotland plc UniCredit Bank AG

Hauptzahlstelle: Deutsche Bank Aktiengesellschaft

Beschreibung der € % garantierte Schuldverschreibungen mit Schuldverschreibungen: Fälligkeit zum 29 Mai 2017 (die Schuldverschreibungen ). Die Schuldverschreibungen werden von der Emittentin am 28 Mai 2010 (der Emissionstag ) emittiert.

Feststellung des Nennbetrages, des Der endgültige Emissionspreis, der Gesamtnennbetrag, Emissionspreises und weiterer der Zinssatz, der Emissionserlös, die Provisionen und Konditionen: die Erträge und Aufwendungen der Emission sind in der Pricing Notice enthalten, die am oder vor dem Emissionstag der Schuldverschreibungen auf der Internetseite der Luxemburger Wertpapierbörse (www.bourse.lu) veröffentlicht wird.

Die Schuldverschreibungen werden ab 28 Mai 2010 Zinsen: (einschließlich) bis 29 Mai 2017 (ausschließlich) zu einem Satz von % per annum verzinst. Zinszahlungen erfolgen nachträglich am 29 Mai eines jeden Jahres, beginnend am 29 Mai 2011.

Wahlweise Rückzahlung durch die Falls infolge einer Änderung oder Ergänzung der in Emittentin aus steuerlichen Gründen: Deutschland geltenden Gesetze oder Vorschriften bestimmte Quellensteuern auf Zahlungen von Kapital- oder Zinsbeträgen in Bezug auf die Schuldverschreibungen erhoben werden und die Emittentin verpflichtet ist, Zusätzliche Beträge (wie in § 7 der Emissionsbedingungen definiert) zu zahlen, kann die Emittentin die Schuldverschreibungen ganz, aber nicht teilweise zurückzahlen (§ 5 Absatz 2 der Emissionsbedingungen).

Kündigungsgründe: Kündigungsgründe im Rahmen der Schuldverschreibungen sind unter anderem 30 Tage andauernde Nichtzahlung von Kapital oder Zinsen, die Verletzung sonstiger Verpflichtungen aus den Schuldverschreibungen (sofern diese Verletzung nicht innerhalb von 30 Tagen geheilt wird), die Nichterfüllung bestimmter weiterer Zahlungsverpflichtungen durch die Emittentin und die Garantin sowie bestimmte Ereignisse im Zusammenhang mit einer Insolvenz oder Abwicklung der Emittentin oder der Garantin (§ 9 der Bedingungen).

Negativverpflichtung ( Negative Pledge ): Die Emissionsbedingungen enthalten Bestimmungen zu einer Negativverpflichtung (§ 2 Absatz 2 und 4 der Bedingungen).

Änderung der Die Emissionsbedingungen enthalten eine Bestimmung Beherrschungsverhältnisse ( Change of zu einer Änderung der Beherrschungsverhältnisse Control ): (§ 5 Absatz 3 der Emissionsbedingungen).

Garantie: Die Garantin hat eine unwiderrufliche und unbedingte Garantie in Bezug auf die ordentliche Zahlung von Kapital und Zinsen und anderen aus den Schuldverschreibungen zahlbaren Beträgen abgegeben.

Status der Schuldverschreibungen: Die Schuldverschreibungen stellen direkte, unbedingte, nicht nachrangige und (vorbehaltlich der Bestimmungen zu der Negativverpflichtung (§ 2 Absatz 2 und 4 der Emissionsbedingungen)) unbesicherte Verbindlichkeiten der Emittentin dar und sind untereinander sowie (mit Ausnahme bestimmter Verpflichtungen, die kraft Gesetzes vorrangig zu bedienen sind) mit allen anderen, jeweils ausstehenden unbesicherten Verbindlichkeiten (mit Ausnahme etwaiger nachrangiger Verbindlichkeiten) der Garantin gleichrangig.

Beschlüsse der Die Emissionsbedingungen der Schuldverschreibungen

Schuldverschreibungsgläubiger: enthalten Bestimmungen zu Beschlüssen der Schuldverschreibungsgläubiger gemäß dem deutschen Schuldverschreibungsgesetz (§ 13 der Bedingungen). Gemäß diesen Bestimmungen kann ein Mehrheitsbeschluss für alle Schuldverschreibungsgläubiger bindend sein, auch für Schuldverschreibungsgläubiger, die ihr Stimmrecht nicht ausgeübt haben oder die nicht mit der Mehrheit gestimmt haben.

Quellensteuer und Zusätzliche Beträge: Die Emittentin wird diejenigen Zusätzlichen Beträge zahlen, die erforderlich sind um sicherzustellen, dass die von jedem Schuldverschreibungsgläubiger in Bezug auf die Schuldverschreibungen vereinnahmte Nettozahlung nach Einbehalt für Steuern, die von Steuerbehörden in Deutschland auf Zahlungen erhobenen werden, die von bzw. für die Emittentin in Bezug auf die Schuldverschreibungen geleistet werden, dem Betrag entspricht, der bei Nichterhebung dieser Quellensteuer vorbehaltlich der üblichen Ausnahmeregelungen gemäß Beschreibung unter § 7 der Emissionsbedingungen vom Schuldverschreibungsgläubiger vereinnahmt worden wäre.

Börsennotierung und Zulassung zum Die Zulassung zur Notierung der Handel: Schuldverschreibungen an der Official List der Luxemburger Wertpapierbörse und zum Handel an der von der Luxemburger Wertpapierbörse betriebenen EuroMTF-Markt wurden bei der Luxemburger Wertpapierbörse beantragt. Der EuroMTF-Markt der Luxemburger Wertpapierbörse ist kein geregelter Markt im Sinne der Richtlinie über Märkte für Finanzinstrumente (Richtlinie 2004/39/EG).

Anwendbares Recht: Die Schuldverschreibungen unterliegen deutschem Recht.

Form: Die Schuldverschreibungen lauten auf den Inhaber und werden in Stückelungen von € 1.000 begeben.

Kreditbewertung: Die langfristigen und kurzfristigen Schuldtitel der Garantin wurden von Standard & Poor's (a division of the McGraw-Hill Companies, Inc.) ( Standard & Poor's ) mit "BBB+" bzw. "A-2" bewertet. Die Garantin wurde von Moody's Investors Service, Inc. mit "Baa1" bewertet. Die Schuldverschreibungen werden von Standard & Poor's geratet werden. Eine Bewertung stellt keine Empfehlung dar, Wertpapiere zu kaufen, zu verkaufen oder zu halten, und kann jederzeit von der jeweiligen Rating-Agentur geändert, ausgesetzt oder zurückgenommen werden.

Verkaufsbeschränkungen: Die Schuldverschreibungen wurden und werden nicht gemäß dem US-Wertpapiergesetz registriert und dürfen

vorbehaltlich bestimmter Ausnahmen, nicht innerhalb der Vereinigten Staaten angeboten oder verkauft werden. In anderen Rechtsordnungen dürfen die Schuldverschreibungen nur unter Einhaltung der geltenden Gesetze und Vorschriften verkauft werden. Siehe "Zeichnung, Angebot und Verkauf" ( Subscription, Offer and Sale ) ab Seite 75.

Öffentliches Angebot: Die Schuldverschreibungen können in Österreich, Deutschland, Luxemburg und den Niederlanden im Rahmen eines öffentlichen Angebots vertrieben werden. Die Bestimmungen und Beschränkungen in Bezug auf Schuldverschreibungen, die im Rahmen eines öffentlichen Angebots im Europäischen Wirtschaftsraum vertrieben werden, können dem Abschnitt "Zeichnung, Angebot und Verkauf – Öffentliches Angebot" ( Subscription, Offer and Sale – Public Offer ) entnommen werden.

Verwendung des Emissionserlöses: Der Nettoerlös der Emission der Schuldverschreibungen wird von der Emittentin als Darlehen an die Garantin oder weitere Konzernunternehmen ausgereicht, die die Gelder für allgemeine Unternehmenszwecke verwenden.

ZUSAMMENFASSUNG DER RISIKOFAKTOREN Die Schuldverschreibungen Bestimmte Faktoren sind für die Bewertung der mit den Schuldverschreibungen verbundenen Marktrisiken von wesentlicher Bedeutung. Diese sind unter "Risikofaktoren" (Risk Factors ) ab Seite 18 dargestellt und umfassen unter anderem die Tatsache, dass die Schuldverschreibungen eine möglicherweise nicht für alle Anleger geeignete Anlage darstellen, sowie Marktpreisrisiken, Zinsrisiken, Inflationsrisiken, steuerliche Risiken, Liquiditätsrisiken, das Risiko der vorzeitigen Rückzahlung aus steuerlichen Gründen und das Risiko von Änderungen der Emissionsbedingungen aufgrund eines Beschlusses der Schuldverschreibungsgläubiger oder einer Gesetzesänderung.

Die Emittentin Die Emittentin ist eine Finanzierungsgesellschaft für die Garantin und andere Konzernunternehmen (der Heraeus-Konzern ). In dieser Eigenschaft nimmt die Gesellschaft durch die Emission von Schuldverschreibungen Finanzmittel auf und reicht im Wege von konzerninternen Darlehen Gelder an die Garantin oder andere Konzernunternehmen aus. Falls die Garantin bzw. ein anderes Konzernunternehmen versäumt, eine Zahlung aus einem der Garantin oder einem Konzernternehmen gewährten Kredit zu leisten, kann die Emittentin unter Umständen ihre Zahlungsverpflichtungen aus den von ihr emittierten Schuldverschreibungen nicht erfüllen.

Die Garantin Bestimmte Faktoren können die Fähigkeit der Garantin zur Erfüllung ihrer Verpflichtungen aus der Garantie beeinträchtigen. Diese sind ebenfalls nachstehend unter "Risikofaktoren" ( Risk Factors) ab Seite 18 dargestellt und umfassen die folgenden Hauptrisiken: Marktrisiken, strategische Risiken, betriebliche Risiken, Beschaffungsrisiken, Edelmetallhandelsrisiken, Risiken in Verbindung mit Gesundheitsreformen, Wechselkursrisiken, Liquiditätsrisiken, Anlagerisiken, Erwerbs- und Veräußerungsrisiken, rechtliche Risiken, Risiken in Verbindung mit Mitarbeitern in

Schlüsselpositionen, Risiken in Verbindung mit Rechten an geistigem Eigentum, IT-Risiken, Umweltrisiken, Risiken in Verbindung mit Änderungen im aufsichtsrechtlichen Umfeld, Risiken in Verbindung mit Kreditbewertungen von Unternehmen, Neuentwicklungsrisiken und Risiken in Verbindung mit den jeweiligen Herstellungsländern.

ZUSAMMENFASSUNG DER BESCHREIBUNG DER EMITTENTIN

Allgemeine Informationen Heraeus Finance GmbH (die Emittentin ) ist eine Gesellschaft mit beschränkter Haftung nach deutschem Recht. Die Emittentin ist im Handelsregister des Amtsgerichtes Hanau unter HRB 93178 eingetragen. Anschrift und Sitz der Emittentin sind Heraeusstraße 12-14, 63450 Hanau. Das ausgegebene Stammkapital der Emittentin beläuft sich auf € 25.000. Die Emittentin steht zu 100% im Eigentum der Garantin, d. h. der Heraeus Holding GmbH. Das Leitungsorgan der Emittentin ist die Geschäftsführung, die aus Dr. Frank Heinricht und Jan Rinnert besteht.

Gesellschaftszweck Die Emittentin ist eine Finanzierungsgesellschaft für den Heraeus-Konzern. In dieser Eigenschaft nimmt die Gesellschaft Finanzmittel auf, z.B. durch die Emission von Schuldverschreibungen, und reicht diese als Darlehen an die Garantin oder weitere Konzernunternehmen weiter. Auch in Zukunft kann sie weitere Finanzmittel aufnehmen und im Wege von konzerninternen Krediten an Konzernunternehmen weiter reichen.

ZUSAMMENFASSUNG DER BESCHREIBUNG DER GARANTIN

Allgemeine Informationen Heraeus Holding GmbH (die Garantin ) ist eine Gesellschaft mit beschränkter Haftung nach deutschem Recht. Sie ist im Handelsregister des Amtsgerichtes Hanau unter HRB 3364 eingetragen. Anschrift und Sitz der Garantin sind Heraeusstraße 12-14, 63450 Hanau. Ihr ausgegebenes Stammkapital beläuft sich auf €210.000.000. Die Garantin steht im Eigentum der Einhorn Verwaltungsgesellschaft mbh sowie ungefähr 185 einzelner Gesellschafter.

Gesellschaftszweck Die Garantin ist die Muttergesellschaft des Heraeus-Konzerns, eines international tätigen Edelmetall- und Technologiekonzerns. Die Garantin ist für die Gesamtgeschäftsführung des Heraeus-Konzerns verantwortlich. Die Konzernbereiche des Heraeus-Konzerns umfassen Edelmetalle, Sensoren, Biomaterialien und Medizinprodukte, Dentalprodukte, Quarzglas sowie Speziallichtquellen.

Überblick über Organisationsstruktur und Geschäftstätigkeit Die Garantin ist die Obergesellschaft des Heraeus-Konzerns. Der Heraeus-Konzern ist derzeit in sechs Konzernbereiche gegliedert, wobei jeder Konzernbereich von einem selbständigen Rechtsträger (jeweils eine operative Führungsgesellschaft ) organisiert wird. Manche, aber nicht sämtliche operative Führungsgesellschaften sind mit der Garantin über einen Beherrschungs- und Ergebnisabführungsvertrag verbunden. Die meisten der ausländischen verbundenen Unternehmen werden von einer Zwischenholding gehalten. Auch die Emittentin sowie drei Grundstücks-Holding- Gesellschaften stehen zu 100% im Eigentum der Garantin. Zusammen mit den jeweiligen betrieblich zugeordneten verbundenen Unternehmen bilden die operative Führungsgesellschaften die sechs Hauptkonzernbereiche des Heraeus-Konzerns:

• W. C. Heraeus GmbH (W. C. Heraeus) ist für den Konzernbereich Edelmetalle verantwortlich.

• Heraeus Electro-Nite International N.V. (Heraeus Electro-Nite) ist für den Konzernbereich Sensoren verantwortlich.

• Heraeus Kulzer GmbH (Heraeus Dental) ist für den Konzernbereich Dentalprodukte verantwortlich.

• Heraeus Medical GmbH (Heraeus Medical) ist für den Konzernbereich Biomaterialien und Medizinprodukte verantwortlich.

• Heraeus Quarzglas GmbH & Co KG (Heraeus Quarzglas) ist für den Konzernbereich Quarzglas verantwortlich.

• Heraeus Noblelight (Heraeus Noblelight) GmbH ist für den Konzernbereich Speziallichtquellen verantwortlich.

Aufsichtsrat und Geschäftsführung Die Garantin verfügt über einen Aufsichtsrat, der aus 12 Mitgliedern besteht und dessen Vorsitzender Dr. Jürgen Heraeus ist. Das Leitungsorgan der Garantin ist ihre Geschäftsführung, die aus Dr. Frank Heinricht (Vorsitzender) und Jan Rinnert besteht.

Überblick über die Geschäftstätigkeit Die Garantin Die Garantin fungiert als Holding-Gesellschaft für den Heraeus-Konzern. Zusätzlich zu den Aufgaben ihrer anderen Abteilungen (z.B. Controlling, Steuern, Konzernkommunikation, Buchführung, Recht, Unternehmensentwicklung und interne Revision) ist die Garantin für das Finanzmanagement des Heraeus-Konzern verantwortlich, was insbesondere die folgenden Tätigkeiten umfasst: Kreditaufnahme für den Heraeus-Konzern, Liquiditätssteuerung für den gesamten Heraeus-Konzern, Fremdwährungs-Management für den gesamten Heraeus-Konzern und Risikomanagement für den gesamten Heraeus-Konzern.

Der Heraeus-Konzern Auf betrieblicher Ebene lässt sich der Heraeus-Konzern in die folgenden sechs Hauptkonzernbereiche unterteilen: (i) Edelmetalle, (ii) Sensoren, (iii) Dentalprodukte, (iv) Biomaterialien und Medizinprodukte, (v) Quarzglas und (vi) Speziallichtquellen.

Konzernbereich Edelmetalle – W. C. Heraeus Der Konzernbereich Edelmetalle verarbeitet die Edelmetalle Gold und Silber, Platingruppenmetalle sowie Sondermetalle primär zu industriellen Produkten. Der globale Verbund aus Gesellschaften in Europa, Nordamerika, Asien und Afrika umfasst Fertigungsstätten für alle Stufen der Edelmetallgewinnung und -verarbeitung. Die Leistungen und Produkte von W. C. Heraeus beziehen sich auf alle Phasen der Edelmetallgewinnung. Die Hauptabnehmer der Produkte des Konzernbereichs Edelmetalle stammen aus den Bereichen Umwelt, Mobilität, Kommunikation und Energie sowie aus der Gesundheitsindustrie. Konzernbereich Sensoren – Heraeus Electro-Nite Dieser Konzernbereich ist auf Sensoren und Messsysteme für die Stahl-, Aluminium und Gießereiindustrie spezialisiert. Der Konzernbereich produziert und vertreibt Sensoren mit Hilfe von globalen Fertigungs- und Vertriebsstätten auf allen Kontinenten.

Konzernbereich Dentalprodukte – Heraeus Dental Der Konzernbereich Dentalprodukte ist ein Komplettanbieter von Prothesen und Systemen zum Erhalt und zur Wiederherstellung von natürlichen Zähnen und bietet ein umfassendes Produktprogramm für Dentallabore und Zahnarztpraxen. Konzernbereich Biomaterialien und Medizinprodukte - Heraeus Medical Der Konzernbereich Biomaterialien und Medizinprodukte konzentriert sich auf medizinische Produkte für die chirurgische Orthopädie sowie Unfall- und Biochirurgie. Der Konzernbereich betreibt die Entwicklung, Produktion und weltweite Vermarktung von Biomaterialien, mit denen Gelenkprothesen im Knochen fixiert sowie Wirbelsäulenfrakturen stabilisiert werden. Konzernbereich Quarzglas – Heraeus Quarzglas Der Konzernbereich Quarzglas ist auf die Herstellung und Verarbeitung von hochreinem Quarzglas spezialisiert. Der Bereich verfügt über Verfahren zur Fertigung unterschiedlicher Quarzglastypen für die Halbleiter- und Telekommunikationsindustrie sowie für Anwendungen in der optischen, chemischen und Lampenindustrie. Konzernbereich Speziallichtquellen – Heraeus Noblelight Der Konzernbereich Speziallichtquellen ist auf Speziallampen mit Wellenlängen von Ultraviolett bis Infrafrot für industrielle, wissenschaftliche und medizinische Anwendungen spezialisiert. Der Konzernbereich stellt an Standorten in Deutschland, Großbritannien, China und den USA Speziallichtquellen für analytische Messverfahren und die Druckindustrie sowie Infrarot-Strahler für industrielle Wärmeprozesse, Laseranregungslampen und Produkte zur Wasserentkeimung, Luftbehandlung und Sonnensimulation mit hoher Fertigungstiefe her.

Ausgewählte Finanzinformationen Die nachstehende Tabelle stellt die ausgewählten Finanzinformationen hinsichtlich der Garantin dar, die dem geprüften Konzernabschluss und dem Konzernlagebericht der Garantin für das am 31. Dezember 2009 geendete Geschäftsjahr entnommen wurden. Der Konzernabschluss und der Konzernlagebericht wurden entsprechend den internationalen Rechnungslegungsvorschriften (IFRS), wie sie in der EU anzuwenden sind, erstellt.

Ausgewählte Schlüsselfinanzindikatoren für den Heraeus-Konzern

2009 2008

in € Millionen in € Millionen Änderung in %

Produktumsatz 2.586 2.920 - 11,4 Edelmetallhandelsumsatz 13.634 12.994 + 4,9 Ergebnis vor Zinsen und Steuern (EBIT) 171 275 -37,7 Jahresüberschuss 118 168 - 29,8 Mittelzuflüsse aus laufender 459 - 71,4 131 Geschäftstätigkeit Bilanzsumme 2.929 2.856 +2,5 Eigenkapital 1.684 1.586 + 6,2 Eigenkapital in % der Bilanzsumme 58% 56% -

RISK FACTORS

Each of the Issuer and the Guarantor believes that the following factors may affect their ability to fulfil their obligations under the Notes. All of these factors are contingencies which may or may not occur and neither the Issuer nor the Guarantor is in a position to express a view on the likelihood of any such contingency occurring. In addition, factors which are material for the purpose of assessing the market risks associated with the Notes are described below.

Each of the Issuer and the Guarantor believes that the factors described below represent the principal risks inherent in investing in the Notes, but the inability of the Issuer or the Guarantor to pay interest, principal or other amounts on or in connection with the Notes may occur for other reasons which may not be considered significant risks by the Issuer and the Guarantor based on information currently available to them or which they may not currently be able to anticipate. Prospective investors should also read the detailed information set out elsewhere in this Prospectus and reach their own views prior to making any investment decision.

The information in this section "Risk Factors" includes risk factors relating to (i) the Notes, (ii) the Issuer, and (iii) the Guarantor.

RISKS RELATING TO THE NOTES

The Notes may not be a suitable investment for all investors Each potential investor in the Notes must determine the suitability of that investment in light of its own circumstances. In particular, each potential investor should:

(i) have sufficient knowledge and experience to make a meaningful evaluation of the Notes, the merits and risks of investing in the Notes and the information contained or incorporated by reference in this Prospectus or any applicable supplement;

(ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular financial situation, an investment in the Notes and the impact the Notes will have on its overall investment portfolio;

(iii) have sufficient financial resources and liquidity to bear all of the risks of an investment in the Notes, including where the currency for principal or interest payments is different from the potential investor's currency;

(iv) understand thoroughly the Terms and Conditions and be familiar with the behaviour of any relevant financial markets; and

(v) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for economic, interest rate and other factors that may affect its investment and its ability to bear the applicable risks.

Market price risks The market prices of the Notes depends on various factors, such as changes of interest rate levels, the policy of central banks, overall economic developments, inflation rates or the supply and demand for the Notes. Disadvantageous changes to such factors may adversely affect the value of the Notes.

Interest Rate risks Investment in the Notes involves the risk that subsequent changes in market interest rates may adversely affect the value of the Notes. The Notes are paying a fixed rate of interest on the specified

interest payment dates. If the market interest rates rise the interest amounts the Noteholders receive is less than the amount they would have received had they invested in a security with a floating rate of interest. The market value of fixed rate securities such as the Notes will decrease if potential investors perceive that they can achieve a greater return on an investment by investing in alternative products.

Inflation The inflation risk is the risk of future money depreciation. The real yield from an investment is reduced by inflation. The higher the rate of inflation, the lower the real yield on the Notes. If the inflation rate is equal to or higher than the nominal yield, the real yield is zero or even negative.

EU Savings Directive If a payment were to be made or collected through a Member State which has opted for a withholding system and an amount of, or in respect of, tax were to be withheld from that payment, neither the Issuer nor any Paying Agent nor any other person would be obliged to pay additional amounts with respect to any Note as a result of the imposition of such withholding tax.

Secondary market Application has been made to List the Notes on the Euro MTF market of the Luxembourg Stock Exchange (which is not a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC)). However, there can be no assurance that a liquid market for the Notes will develop or, if it does develop, that it will continue. If a market does develop, it may not be liquid. Therefore, investors may not be able to sell their Notes easily or at prices that will provide them with a yield comparable to similar investments that have a developed secondary market. Illiquidity may have a severely adverse effect on the market value of Notes and investors whishing to sell the Notes might therefore suffer losses.

Credit ratings Standard & Poor's and Moody's have assigned credit ratings to the Guarantor and Standard & Poor's will also rate the Notes. The ratings may not reflect the potential impact of all risks related to the Guarantor and the Notes, respectively. A credit rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time.

Early redemption for tax reasons In the event that the Issuer would be obliged to increase the amounts payable in respect of any Notes due to any withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or on behalf of Germany or any political subdivision thereof or any authority therein or thereof having power to tax, the Issuer may redeem all outstanding Notes in accordance with the Terms and Conditions. Noteholders may be exposed to risks connected to the reinvestment of cash proceeds from the sale or early redemption of any Note.

Transaction costs When the Notes are purchased or sold, several types of incidental costs (including transaction fees and commissions) are incurred in addition to the purchase or sale price of the Note. Credit institutions as a rule charge commissions which are either fixed minimum commissions or pro-rata commissions, depending on the order value. To the extent that additional – domestic or foreign – parties are involved in the execution of an order, including but not limited to domestic dealers or brokers in foreign markets, Noteholders may also be charged for the brokerage fees, commissions and other fees and expenses of such parties (third party costs). These incidental costs may significantly reduce or eliminate any profit from holding the Notes.

Noteholder resolutions The Terms and Conditions provide that the Noteholders may agree to amendments to the Terms and Conditions by majority vote in accordance with the German Bond Act ( Schuldverschreibungsgesetz ). A Noteholder is therefore subject to the risk to be outvoted and to loose rights towards the Issuer against its will. In addition, the Terms and Conditions provide the possibility to appoint a Joint Representative for all Noteholders. If such Joint Representative is appointed a Noteholder may lose, in whole or in part, the possibility to enforce and claim rights against the Issuer irrespective of the other Noteholders.

Change of law The Terms and Conditions are based on German law in effect as at the date of this Prospectus. No assurance can be given as to the impact of any possible judicial decision or change to German law or administrative practice after the date of this Prospectus.

RISKS RELATING TO THE ISSUER The Issuer is a funding vehicle for the Guarantor and other group companies (the Heraeus Group ). As such, it raises finance through the issue of notes and on-lends monies to the Guarantor or other companies within the Heraeus Group by way of intra-group loans. In the event that the Guarantor or, as the case may be, another group company, fails to make a payment under any loan granted to the Guarantor or a group company, the Issuer may not be able to meet its payment obligations under the Notes issued by it.

RISKS RELATING TO THE GUARANTOR

Group structure The Guarantor acts as the holding company for the Heraeus Group and is responsible for the strategic and financial management of the group. All business operations are conducted by the business segments and the respective operating subsidiaries (each a Managing Company ) the Guarantor or companies in which the Heraeus Group holds participations or joint ventures. The assets of the Guarantor essentially consist of the shares in its operating subsidiaries and related financing. Therefore, in order to be able to meet its operating and other expenses, including the payment of interest and principal to the Noteholders under the Guarantee, the Guarantor is dependent on its operating subsidiaries and the whole Heraeus Group. The inability of such subsidiaries to distribute sufficient profits could have a material adverse effect on the ability of the Guarantor to pay interest on and repay the principal amount of the Notes under the Guarantee.

Market risks The Heraeus Group is dependent on the general global economic conditions, in particular in respect of the countries and markets in which it operates. A significant deterioration in these conditions, such as a continued economic slowdown, decline of customer demand, production overcapacities and low cost competition could have a material adverse effect on the financial condition and results of operation of the Heraeus Group. The global financial and economic crisis had a negative impact on the industrial economy in nearly all developed regions around the world. In particular, economically sensitive consumer branches which are important to the Heraeus Group's business, such as the automotive, steel, and semiconductor industries, felt these negative effects even more acutely. This has resulted in a decline in revenues of the Heraeus Group. The Heraeus Group has responded to this crisis and its affects on the group by using the available flexible cost structures and stabilisation measures. If such measures prove to be ineffective or insufficient or if the crisis continues longer than expected or worsens even further, this may have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Strategic risks The Heraeus Group is exposed to threats to core competencies, critical success factors, strategic goals and, in particular, to the reputation of the relevant companies of the Heraeus Group and their brands. Long-term success is in particular based on the customers’ perceptions of competitive advantages of the group companies and their ability to generate competitive advantages in the future. Any damage to the reputation of the Heraeus Group or its companies as well as any damage to their core competencies, critical success factors, strategic goals or the customers’ perceptions of competitive advantages could have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Operational risks As an industrial group, the Heraeus Group is exposed to risks of interruptions in operation, quality problems and unexpected technical difficulties, as well as to product safety, occupational safety and environmental risks. These risks have been increased by strong growth in previous years, the founding of new subsidiaries and numerous acquisitions. A further operational risk is the physical loss of precious metals e.g. by error, operational malfunctions or fraud. Despite the high technical and safety standards the Heraeus Group applies to the construction, operation and maintenance of its production sites the risk of operational disturbances cannot be excluded. These may be caused both by external factors, which the Heraeus Group is unable to influence, such as natural disasters, war, acts of terrorism, strikes, official orders, technical interruptions or material defects, or accidents or other mistakes in internal procedures such as fire, explosion, release of toxic or hazardous substances. In all of these cases humans, third party property or the environment may sustain damages resulting in material financial liabilities for the Heraeus Group. Damage of this kind may entail civil or criminal law consequences as well as the drop out of the relevant production site. Furthermore, threats from market positions and competitive advantages, fluctuations in demand as a result of the economy, and a strong dependence of some business segments on few customers and suppliers could have a lasting adverse impact on the revenue and earnings development of the Heraeus Group. The realisation of any of the aforementioned risks may have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Procurement The Heraeus Group is dependent on the supply of raw materials and other base products such as, precious metal. A reduced supply of such materials could have material adverse impact on the relevant business segments of the Heraeus Group. In respect of industrial metals, reasons for a reduced supply could be falling market prices which could leave some mines unprofitable for the operating company of the mines, leading to reduced supply for the Heraeus Group. Economic, environmental and political factors may also reduce the supply. Although the Heraeus Group has long-term supply contracts with producers of the relevant base products and, in the case of precious metal, access to fine metal (pure precious metal) from the recovery of refining batches and from used products that are reintroduced to the precious metals cycle, it can not be ensured that the Heraeus Group will have sufficient access to the required supply at all times. On the other hand, the long-term supply agreements may negatively affect the Heraeus Group in case its demand for the relevant products would decline.

Precious metals trading The precious metals trading of the Heraeus Group involves various trading risks. Such trading risks include market price risks, the risk that individuals exceed trading limits or otherwise violate trading rules, misjudgements in respect of hedging transactions and other trades as well as counter party risks, i.e. the risk that counter parties with whom Heraeus entities have entered into precious metals transactions default under such transactions. The counterparty risk has been increased by the financial crisis which had a particular impact on many companies active in the field of precious metals transactions. In addition, negative changes to the precious metals markets including disadvantageous

modifications to the trade and customs regulations may result in increased costs. It is uncertain whether the Heraeus Group would be able to fully pass on such additional costs to its customers, which may result in a reduction of the margins to be achieved in the precious metals business areas. Trading losses, counter party defaults and negative changes to the precious metals markets may have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Healthcare reforms Healthcare reforms in various countries may adversely affect the consumer demand of dental products which is one important business unit of the Heraeus Group. This could have a material adverse effect on the financial condition and results of operation of the Heraeus Group .

Foreign exchange The Heraeus Group conducts a significant portion of its operation outside the Euro zone. Fluctuations in currencies of countries outside the Euro zone could have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Liquidity The Heraeus Group's further business development depends, inter alia , on the ability to fund investments, modernisations and acquisitions in all of its business areas as well as on the refinancing of existing obligations. The Heraeus Group cannot warrant in advance that the necessary funding will be available at the relevant point in time or at acceptable terms. Additionally, if the current financial and economic crisis continues for a longer period of time, the Heraeus Group may find its opportunities for financing and the terms of any financing adversely affected. The lack of required funding and liquidity could have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Investments Many investments undertaken by the Heraeus Group require high initial expenditures as well as ongoing expenditures for modernisation and expansion. Such investments can only be operated profitably if their sufficient utilisation is warranted by corresponding demands. Should the Heraeus Group build up overcapacities that remain unused due to erroneous assessments of the market development this could jeopardise the Heraeus Group's profitability to a considerable extent. Based on circumstances, which are not necessarily in the Heraeus Group's sphere of influence, complex investment projects such as new production facilities may be subject to significant cost excesses or delays despite diligent planning. The Heraeus Group cannot rule out that defects or other external factors may cause interruptions in the operation after the construction has been completed. The realisation of such risks could have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Acquisitions and divestments In order to improve its competitive position the Heraeus Group expects to make further selective acquisitions. Such acquisitions are preceded by an assessment and approval process consisting of several steps and stages. Despite this risk monitoring mechanism, it is possible that potential acquisition targets are misjudged or a company acquired cannot be integrated into the Heraeus Group as expected or at all and may have a material adverse effect on the financial condition and results of operation of the Heraeus Group. In the case of disinvestments, there is a risk that these prove in the retrospect to have negative effects on the Heraeus Group's business activities or that the expected positive effects do not occur or not to the extent envisaged. Synergy effects, for instance, that have not been recognised or were wrongly assessed may cease to exist. The Heraeus Group could also be subject to claims based on warranty provisions agreed to in divestment agreements.

Legal risks The Heraeus Group is exposed to risks relating to current or future legal disputes, administrative proceedings, fines or damage claims involving, inter alia, allegations of violations of industrial and intellectual property rights, improper delivery of goods or services, product liability, product defects, quality problems, antitrust infringements, or breaches of environmental law as well as guarantee claims from divestments or claw-back claims concerning payments made to the Heraeus Group by contract parties which became insolvent. This can lead to expensive and protracted lawsuits. In addition, violations of industrial and intellectual property rights can occur. This can also lead to expensive and protracted lawsuits. It is not possible to rule out for the future that the Heraeus Group may be confronted with allegations or charges of patent rights infringements and will have to deal with them. Such legal disputes could have a material adverse effect on the financial condition and results of operation of the Heraeus Group.

Key employees The success of the Heraeus Group is dependent on its personnel in key positions, such as the directors of the Guarantor, the managers of subsidiaries or other executive staff. The inability of the Heraeus Group to retain key personnel or to recruit appropriate successors could have a material adverse effect on the financial condition and results of operation of the Heraeus Group. Further, the personal skills and know-how of the Heraeus Group's employees constitute an important success factor. The future success of the Heraeus Group depends on the ability to recruit and retain highly qualified staff. Particularly when operating business expands and new staff is recruited, Heraeus Group is dependent on having a sufficient number of suitable staff who are able to perform the required work to the required standard. If, for instance, there is a higher turnover and therefore a loss of know-how, this could affect the quality of future business development.

Intellectual property rights The Heraeus Group possesses a large number of patents and other intellectual property rights. The Heraeus Group attaches the same significance to non-patentable or not patented business secrets as well as confidential and non-confidential know-how, which are important for the Heraeus Group's continued success. The patents and intellectual property rights are a target for counterfeiting and imitation. Although counterfeiting and imitation is a global risk, it is a particular high risk in Asia where the Heraeus Group is doing a significant portion of its business. Insufficient protection of its intellectual property may limit the Heraeus Group's ability to make use of technological advantages reached in a profitable manner or result in a reduction of future profits. This may cause competitive restrictions with a detrimental impact on the asset, financial and profit situation of the Heraeus Group as well as its general business activities. Should the Heraeus Group not invoke and/or have invoked its rights within the scope of the provisions of the German Employee Invention Act ( Arbeitnehmererfindergesetz ) or similar regulations in other countries there may be a risk of the individual employees eventually becoming owners of the rights relating to the respective invention. The Heraeus Group would then have to acquire license rights from these employees or obtain licenses for similar/alternative technologies from third parties in order to be permitted to use these technologies or procedures. Furthermore, employee inventors may raise remuneration claims against the Heraeus Group for inventions made by them in the course of their employment. Since the Heraeus Group's competitors also submit patent applications relating to their inventions to a significant extent and obtain the relevant protection, the Heraeus Group may infringe third parties' patents and other intellectual property rights. The Heraeus Group may have to rely on using third parties' technologies by acquiring the relevant licenses which would entail license fees and other costs. Possible supply and production restrictions due to patent infringements or the subsequent acquisition of the relevant licenses may have a detrimental impact on the asset, financial and profit situation of the Heraeus Group as well as its general business activities.

Information technology Heraeus Group is dependent upon technology for the distribution of information within the Heraeus Group as well as to customers and suppliers. This information technology is subject to risks associated with defects, errors, failures, computer viruses, data losses and breaches of data security. There can be no assurance that Heraeus Group's information technology systems will not fail and cause material disruption of Heraeus Group. This risk is increased by the strong growth in previous years, the founding of new subsidiaries, and numerous acquisitions which have led to a widespread, heterogeneous IT landscape.

Environmental risks As a research and manufacturing oriented group, the Heraeus Group is subject to environmental risks. Heraeus Group operates a group-wide environmental management system in order to counter risks in the process chain and make environmental standards transparent. However, the general risks of non compliance with environmental protection laws remains, which may lead to fines and penalty payments, which in turn might have negative effects on Heraeus Group's earnings or financial position. Environmental disasters and resulting claims for damages and compensation may have a material adverse effect on the financial condition and results of operation of Heraeus Group.

Regulatory environment Changes to the legal framework in Germany or other countries in which the Heraeus Group operates can result in risks to Heraeus Group business, increase costs and restrict sales opportunities. Changes to competition rules in individual sections of the markets can also bring disadvantages.

Corporate credit ratings Heraeus has been assigned credit ratings by Moody’s Investors Service, Inc. and Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., respectively. Generally, a credit rating assesses the credit worthiness of an entity and informs an investor about the probability of the entity being able to redeem invested capital. It is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time. Credit ratings play a critical role in determining the costs for entities accessing the capital market in order to borrow funds and the rate of interest they can achieve. A decrease in credit ratings may increase borrowing costs significantly and may accordingly have a material adverse effect on the financial condition and results of operation of Heraeus Group.

New product developments and production Heraeus Group's operating results depend on the development of commercially viable new products and manufacturing technologies. Substantial resources are being invested in research and development. Due to technological challenges, lengthy development processes and intense competition, there can be no assurance that any of the products or technologies Heraeus Group is currently developing, or may begin to develop in the future, will become marketable- and achieve substantial commercial success.

Country risks The Heraeus Group operates in numerous countries and distributes its products and services globally. The general conditions in some of the countries in which the Heraeus Group operates or to which it exports its products are different to those in Western Europe and the economic, political or legal situation is less stable. The Heraeus Group therefore faces a number of political, social, economic, financial and market-related instabilities in those countries and may also be subject to currency or precious metals control regulations as well as currency exchange rules it cannot influence. These factors include the risk of possible nationalisations. The Heraeus Group's operations may also be

jeopardised by insufficient infrastructure, trade limits or under-developed legal and administrative systems.

One of the most important foreign countries for the Heraeus Group (both as a market and as a production location) is China. A negative development of China's economy, e.g. because of the expiration of government stimulus programs, overcapacities or low cost competition as well as changes to the legal framework and the regulatory environment could have a material adverse impact on the financial situation of the Heraeus Group.

TERMS AND CONDITIONS OF THE NOTES

TERMS AND CONDITIONS OF THE TERMS AND CONDITIONS OF THE NOTES NOTES GERMAN LANGUAGE VERSION ENGLISH LANGUAGE VERSION (DEUTSCHE FASSUNG DER EMISSIONSBEDINGUNGEN )

§ 1 § 1 WÄHRUNG, STÜCKELUNG, FORM, CURRENCY, DENOMINATION, FORM, DEFINITIONEN CERTAIN DEFINITIONS

(1) Währung, Stückelung. Diese Emission von (1) Currency, Denomination. This issue of Schuldverschreibungen (die Notes (the Notes ) of Heraeus Finance GmbH Schuldverschreibungen ) der Heraeus Finance (the Issuer ) is being issued in euro (€ and the GmbH (die Emittentin ) wird in Euro ( € und Specified Currency ) in the aggregate die festgelegte Währung ) im principal amount of € (in words: million Gesamtnennbetrag von € (in Worten: euro) in the denomination of €1,000 (the Millionen Euro) in einer Stückelung von je Specified Denomination ) each. €1.000 (die festgelegte Stückelung ) begeben.

(2) Form. Die Schuldverschreibungen lauten (2) Form. The Notes are being issued in bearer auf den Inhaber und sind durch eine oder form and represented by one or more global mehrere Globalurkunden verbrieft (jeweils notes (each a Global Note ). eine Globalurkunde ).

(3) Vorläufige Globalurkunde – Austausch (3) Temporary Global Note – Exchange gegen Dauerglobalurkunde. against Permanent Global Note

(a) Die Schuldverschreibungen sind anfänglich (a) The Notes are initially represented by a durch eine vorläufige Globalurkunde (die temporary global note (the Temporary Global vorläufige Globalurkunde ) ohne Zinsscheine Note ) without coupons. The Temporary Global verbrieft. Die vorläufige Globalurkunde kann Note will be exchangeable for Notes in the gegen Schuldverschreibungen in der Specified Denomination represented by a festgelegten Stückelung, die durch eine permanent global note (the Permanent Global Dauerglobalurkunde (die Note ) without coupons. The Temporary Global Dauerglobalurkunde ) ohne Zinsscheine Note and the Permanent Global Note shall verbrieft sind, ausgetauscht werden. Die each be signed manually or in facsimile by two vorläufige Globalurkunde und die authorised signatories of the Issuer and shall Dauerglobalurkunde tragen jeweils die each be authenticated by or on behalf of the eigenhändigen oder faksimilierten Principal Paying Agent. Unterschriften zweier ordnungsgemäß bevollmächtigter Vertreter der Emittentin und sind jeweils von der Hauptzahlstelle oder in deren Namen mit einer Kontrollunterschrift versehen.

(b) Die vorläufige Globalurkunde wird an (b) The Temporary Global Note shall be einem Tag (der Austauschtag ) gegen die exchanged for the Permanent Global Note on a Dauerglobalurkunde ausgetauscht, der nicht date (the Exchange Date ) not later than 180 mehr als 180 Tage nach dem Tag der Ausgabe days after the date of issue of the Temporary der vorläufigen Globalurkunde liegt. Der Global Note. The Exchange Date shall not be Austauschtag für einen solchen Austausch darf earlier than 40 days after the date of issue of

nicht weniger als 40 Tage nach dem Tag der the Temporary Global Note. Such exchange Ausgabe der vorläufigen Globalurkunde shall only be made upon delivery of liegen. Ein solcher Austausch darf nur nach certifications to the effect that the beneficial Vorlage von Bescheinigungen erfolgen, owner or owners of the Notes represented by wonach der oder die wirtschaftlichen the Temporary Global Note is/are not (a) U.S. Eigentümer der durch die vorläufige person(s) (other than certain financial Globalurkunde verbrieften institutions or certain persons holding Notes Schuldverschreibungen keine U.S.-Person(en) through such financial institutions). Payment ist (sind) (ausgenommen bestimmte of interest on Notes represented by a Finanzinstitute oder bestimmte Personen, die Temporary Global Note will be made only Schuldverschreibungen über solche after delivery of such certifications. A separate Finanzinstitute halten). Zinszahlungen auf certification shall be required in respect of durch eine vorläufige Globalurkunde verbriefte each such payment of interest. Any such Schuldverschreibungen erfolgen erst nach certification received on or after the 40th day Vorlage solcher Bescheinigungen. Eine after the date of issue of the Temporary Global gesonderte Bescheinigung ist hinsichtlich einer Note will be treated as a request to exchange jeden solchen Zinszahlung erforderlich. Jede such Temporary Global Note pursuant to Bescheinigung, die am oder nach dem 40. Tag subparagraph (b) of this § 1(3). Any securities nach dem Tag der Ausgabe der vorläufigen delivered in exchange for the Temporary Globalurkunde eingeht, wird als ein Ersuchen Global Note shall be delivered only outside of behandelt werden, diese vorläufige the United States (as defined in § 4(3)). Globalurkunde gemäß Unterabsatz (b) dieses § 1 Absatz 3 auszutauschen. Wertpapiere, die im Austausch für die vorläufige Globalurkunde geliefert werden, sind nur außerhalb der Vereinigten Staaten (wie in § 4 Absatz 3 definiert) zu liefern.

(4) Clearing System. Die Vorläufige (4) Clearing System. The Temporary Global Globalurkunde und die Dauerglobalurkunde Note and the Permanent Global Note will be werden von oder für ein Clearing System kept in custody by or on behalf of a Clearing verwahrt bis, im Fall einer System until, in the case of the Permanent Dauerglobalurkunde, sämtliche Global Note, all obligations of the Issuer under Verbindlichkeiten der Emittentin aus den the Notes have been satisfied. Clearing Schuldverschreibungen erfüllt sind. Clearing System means each of Clearstream Banking, System bezeichnet jeweils Clearstream société anonyme , Luxembourg ( CBL ) and Banking, société anonyme, Luxemburg ( CBL ) Euroclear Bank S.A./N.V. ( Euroclear ) and und Euroclear Bank S.A./N.V. ( Euroclear ) any successor in such capacity. The Notes are sowie jeden Nachfolger in dieser Eigenschaft. issued in new global note ( NGN ) form and are Die Schuldverschreibungen werden in Form kept in custody by a common safekeeper on einer neuen Globalurkunde ( NGN ) begeben behalf of both Euroclear and CBL (each an und werden von einem Gemeinsamen ICSD and together the ICSDs ). Verwahrer für Euroclear und CBL (jeweils ein ICSD und zusammen die ICSDs ) verwahrt.

(5) Schuldverschreibungsgläubiger. (5) Noteholders. Noteholder means any holder Schuldverschreibungsgläubiger bezeichnet of a proportionate co-ownership or other jeden Inhaber eines Miteigentumsanteils oder beneficial interest or right in the Notes. anderen Rechts an den Schuldverschreibungen.

(6) Unterlagen der ICSDs. Als Nennbetrag der (6) Records of the ICSDs . The principal durch die Globalurkunde verbrieften amount of Notes represented by the Global Schuldverschreibungen gilt der jeweils in den Note shall be the aggregate amount from time Unterlagen der beiden ICSDs verzeichnete to time entered in the records of both ICSDs. Gesamtbetrag. Die Unterlagen der ICSDs The records of the ICSDs (which expression

(wobei dieser Ausdruck die Unterlagen means the records that each ICSD holds for its bezeichnet, die jeder der ICSDs für seine customers which reflect the amount of such Kunden führt und in welchen der Betrag des customer’s interest in the Notes) shall be auf jeden Kunden entfallenden conclusive evidence of the principal amount of Miteigentumsanteils an den Notes represented by the Global Note and, for Schuldverschreibungen erfasst ist) gelten als these purposes, a statement (which statement schlüssiger Nachweis in Bezug auf den shall be made available to the Noteholder upon Nennbetrag der durch die Globalurkunde request) issued by an ICSD stating the verbrieften Schuldverschreibungen; zu diesem principal amount of Notes so represented at Zweck gilt eine von einem ICSD erstellte any time shall be conclusive evidence of the Bescheinigung über den Nennbetrag der records of the relevant ICSD at that time. verbrieften Schuldverschreibungen (die dem Schuldverschreibungsgläubiger auf Verlangen zur Verfügung zu stellen ist) als ausreichender Beweis in Bezug auf die Unterlagen des betreffenden ICSD zu dem jeweiligen Zeitpunkt.

Bei der Rückzahlung oder Zahlung von Zinsen On any redemption or payment of interest auf die Schuldverschreibungen und beim being made in respect of, or purchase and Rückkauf und bei der Entwertung von cancellation of, any of the Notes represented Schuldverschreibungen, die durch diese by such Global Note the Issuer shall procure Globalurkunde verbrieft sind, hat die that details of any redemption, payment, or Emittentin sicherzustellen, dass nähere purchase and cancellation (as the case may be) Angaben zu der Rückzahlung oder Zahlung in respect of the Global Note shall be entered bzw. dem Rückkauf und der Entwertung in pro rata in the records of the ICSDs and, upon Bezug auf die Globalurkunde unter Angabe any such entry being made, the principal des betroffenen Anteils in den Unterlagen der amount of the Notes recorded in the records of ICSDs vermerkt wird; mit der Vornahme jedes the ICSDs and represented by the Global Note solchen Vermerks verringert sich der shall be reduced by the aggregate principal Nennbetrag der in den Unterlagen der ICSDs amount of the Notes so redeemed or purchased eingetragenen und durch die Globalurkunde and cancelled. verbrieften Schuldverschreibungen um den Gesamtnennbetrag der zurückgezahlten oder zurückgekauften und entwerteten Schuldverschreibungen .

§ 2 § 2 STATUS, EMMITTENTIN; GARANTIE STATUS, NEGATIVE PLEDGE OF THE UND NEGATIVERKLÄRUNG DER ISSUER, GUARANTEE AND NEGATIVE GARANTIN PLEDGE OF THE GUARANTOR

(1) Status. Die Schuldverschreibungen (1) Status. The obligations under the Notes begründen nicht besicherte und nicht constitute unsecured and unsubordinated nachrangige Verbindlichkeiten der Emittentin, obligations of the Issuer ranking pari passu die untereinander und die mit allen anderen among themselves and at least pari passu with nicht besicherten und nicht nachrangigen all other unsecured and unsubordinated present gegenwärtigen und zukünftigen and future obligations of the Issuer unless such Verbindlichkeiten der Emittentin wenigstens other obligations take priority by mandatory gleichrangig sind, soweit diesen provisions of law. Verbindlichkeiten nicht durch zwingende gesetzliche Bestimmungen ein Vorrang eingeräumt wird.

(2) Negativerklärung der Emittentin . Die (2) Negative Pledge of the Issuer . The Issuer Emittentin verpflichtet sich, während der undertakes, as long as any Notes are Laufzeit der Schuldverschreibungen, jedoch outstanding, but only up to the time the funds nicht länger als bis zu dem Zeitpunkt, an dem for the last payment of interest and the full die Mittel für die letzte Zinszahlung und die redemption of the Notes have been placed at volle Rückzahlung der Schuldverschreibungen the disposal of the Clearing Systems, not to den Clearing Systemen zur Verfügung gestellt pledge, assign, transfer or create, or suffer to worden sind, keine Verpfändung, Abtretung, exist, any mortgage or other encumbrance over Übertragung oder hypothekarische oder its existing or future assets or proceeds as sonstige Belastung von einzelnen oder allen security for any current or future Capital ihrer gegenwärtigen oder zukünftigen Markets Indebtedness made or guaranteed by Vermögenswerte oder Einkünfte als Sicherheit the Issuer without at the same time ensuring für eine gegenwärtige oder zukünftige von der that the Noteholders share equally and rateably Emittentin begebene oder garantierte in such security. Kapitalmarktverbindlichkeit vorzunehmen oder bestehen zu lassen, ohne sicherzustellen, dass die Schuldverschreibungsgläubiger zur gleichen Zeit und im gleichen Rang an solchen Sicherheiten teilhaben.

Als Kapitalmarktverbindlichkeit gilt jede Capital Markets Indebtedness means any Zahlungsverpflichtung in der Form von oder payment obligation in the form of, or verbrieft durch Schuldverschreibungen (oder represented by, notes (or similar capital ähnliche Kapitalmarkt-Wertpapiere) mit einer markets securities) with an original maturity of ursprünglichen Laufzeit von über einem Jahr, more than one year which are capable of being die geeignet sind, an einer Wertpapierbörse traded on a stock exchange or over the counter oder einem Over-the-Counter-Wertpapiermarkt securities market, and Schuldschein loans gehandelt zu werden, und governed by German law. For purposes of this Schuldscheindarlehen nach deutschem Recht. clause a Schuldschein loan is a loan evidenced Schuldscheindarlehen ist für Zwecke dieser by a written instrument entitled Schuldschein Bestimmung ein Darlehen, über das eine als or certificate of indebtedness or which is Schuldschein oder certificate of indebtedness referred to in the loan agreement as bezeichnete Urkunde ausgestellt wird oder das Schuldschein loan, Schuldschein or certificate im Darlehensvertrag als Schuldscheindarlehen, of indebtedness. Schuldschein loan oder certificate of indebtedness bezeichnet wird.

(3) Garantie. Die Garantin hat gegenüber der (3) Guarantee . The Guarantor has given Hauptzahlstelle eine unbedingte und towards the Principal Paying Agent its unwiderrufliche Garantie (die Garantie ) für unconditional and irrevocable guarantee (the die ordnungsgemäße Zahlung von Kapital und Guarantee ) for the due payment of principal Zinsen und sonstiger auf die of, and interest on, and any other amounts Schuldverschreibungen zahlbarer Beträge expressed to be payable under the Notes. The übernommen. Die Garantie stellt einen Vertrag Guarantee constitutes a contract for the benefit zugunsten eines jeden of the Noteholders from time to time as third Schuldverschreibungsgläubigers als party beneficiaries in accordance with § 328(1) begünstigtem Dritten gemäß § 328 Absatz 1 of the German Civil Code ( Bürgerliches BGB dar, welcher das Recht eines jeden Gesetzbuch - BGB) 1, giving rise to the right of Schuldverschreibungsgläubigers begründet, each Noteholder to require performance of the

1 An English language translation of § 328(1) German Civil Code would read as follows: "A contract may stipulate performance for the benefit of a third party, to the effect that the third party acquires the right directly to demand performance."

Erfüllung aus der Garantie unmittelbar von der Guarantee directly from the Guarantor and to Garantin zu verlangen und die Garantie enforce the Guarantee directly against the unmittelbar gegenüber der Garantin Guarantor. Copies of the Guarantee may be durchzusetzen. Kopien der Garantie können obtained free of charge at the principal office kostenlos am Sitz der Garantin in Hanau und of the Guarantor in Hanau and at the specified bei der bezeichneten Geschäftsstelle der office of the Principal Paying Agent set forth Hauptzahlstelle gemäß § 6 bezogen werden. in § 6.

(4) Negativerklärung der Garantin. Die (4) Negative Pledge of the Guarantor . The Garantin hat sich in der Garantie verpflichtet, Guarantor has undertaken in the Guarantee während der Laufzeit der that, as long as any Notes are outstanding, but Schuldverschreibungen, jedoch nicht länger als only up to the time the funds for the last bis zu dem Zeitpunkt, an dem die Mittel für die payment of interest and the full redemption of letzte Zinszahlung und die volle Rückzahlung the Notes have been placed at the disposal of der Schuldverschreibungen den Clearing the Clearing Systems, Systemen zur Verfügung gestellt worden sind,

(a) keine Verpfändung, Abtretung, (a) not to pledge, assign, transfer or Übertragung oder hypothekarische oder create, or suffer to exist, any mortgage or other sonstige Belastung von einzelnen oder allen encumbrance over its existing or future assets ihrer gegenwärtigen oder zukünftigen or proceeds as security for any current or Vermögenswerte oder Einkünfte als Sicherheit future Capital Markets Indebtedness made or für eine gegenwärtige oder zukünftige von der guaranteed by the Guarantor; and Garantin begebene oder garantierte Kapitalmarktverbindlichkeit vorzunehmen oder bestehen zu lassen, und

(b) vorbehaltlich zwingender gesetzlicher (b) subject to mandatory provisions of law Bestimmungen sicherzustellen, dass keine it will procure that no subsidiary in which the Tochtergesellschaft, bei der die Garantin über Guarantor holds the majority of voting rights die Mehrheit der Stimmrechte verfügt, für will pledge, assign, transfer or create, or suffer Kapitalmarktverbindlichkeiten eine to exist, any mortgage or other encumbrance Verpfändung, Abtretung, Übertragung oder over its existing or future assets or proceeds as hypothekarische oder sonstige Belastung von security for any current or future Capital einzelnen oder allen ihrer gegenwärtigen oder Markets Indebtedness made or guaranteed by zukünftigen Vermögenswerte oder Einkünfte it, als Sicherheit für eine gegenwärtige oder zukünftige von ihr begebene oder garantierte Kapitalmarktverbindlichkeit vornimmt oder bestehen lässt, ohne sicherzustellen, dass die without at the same time ensuring that the Schuldverschreibungsgläubiger zur gleichen Noteholders share equally and rateably in such Zeit und im gleichen Rang an solchen security. Sicherheiten teilhaben.

§ 3 § 3 ZINSEN INTEREST

(1) Zinssatz und Zinszahlungstage. Die (1) Rate of Interest and Interest Payment Schuldverschreibungen werden in Höhe ihres Dates. The Notes shall bear interest on their Nennbetrages verzinst, und zwar vom 28 Mai principal amount at the rate of % per annum 2010 (einschließlich) bis zum Fälligkeitstag from (and including) 28 May 2010 to (but (wie in § 5 Absatz 1 definiert) (ausschließlich) excluding) the Maturity Date (as defined in mit jährlich %. Die Zinsen sind nachträglich § 5(1)). Interest shall be payable in arrear on

am 29 Mai eines jeden Jahres zahlbar (jeweils 29 May in each year (each such date, an ein Zinszahlungstag ). Die erste Zinszahlung Interest Payment Date ). The first payment of erfolgt am 29 Mai 2011. interest shall be made on 29 May 2011.

(2) Zinslauf. Der Zinslauf der (2) Accrual of Interest. The Notes shall cease Schuldverschreibungen endet an dem Tag, an to bear interest from their due date for dem sie zur Rückzahlung fällig werden. Falls redemption. If the Issuer shall fail to redeem die Emittentin die Schuldverschreibungen bei the Notes when due, interest shall continue to Fälligkeit nicht einlöst, endet die Verzinsung accrue on the outstanding principal amount of des ausstehenden Nennbetrages der the Notes beyond the due date until the actual Schuldverschreibungen nicht am Tag der redemption of the Notes. This does not affect Fälligkeit, sondern erst mit der tatsächlichen any additional rights that might be available to Rückzahlung der Schuldverschreibungen. the Noteholders. Weitergehende Ansprüche der Schuldverschreibungsgläubiger bleiben unberührt.

(3) Berechnung der Zinsen für Teile von (3) Calculation of Interest for Partial Periods . Zeiträumen . Sofern Zinsen für einen beliebigen If interest is required to be calculated for any Zeitraum zu berechnen sind, erfolgt die period of time, such interest shall be calculated Berechnung auf der Grundlage des on the basis of the Day Count Fraction (as Zinstagequotienten (wie nachstehend defined below). definiert).

(4) Zinstagequotient . Zinstagequotient (4) Day Count Fraction . Day Count Fraction bezeichnet im Hinblick auf die Berechnung des means, in respect of the calculation of an Zinsbetrages auf eine Schuldverschreibung für amount of interest on any Note for any period einen beliebigen Zeitraum (ab dem ersten Tag of time (from and including the first day of dieses Zeitraums (einschließlich) bis zum such period to but excluding the last day of letzten ersten Tag dieses Zeitraums such period) (the Calculation Period ) (ausschließlich)) (der Zinsberechnungszeitraum )

(i) wenn der Zinsberechnungszeitraum (i) if the Calculation Period is equal to or der Feststellungsperiode entspricht, in die er shorter than the Determination Period during fällt, oder kürzer als diese ist, die Anzahl von which it falls, the number of days in the Tagen in dem Zinsberechnungszeitraum Calculation Period divided by the product of dividiert durch das Produkt aus (A) der Anzahl (A) the number of days in such Determination von Tagen in der betreffenden Period and (B) the number of Determination Feststellungsperiode und (B) der Anzahl der Periods normally ending in any year; and Feststellungsperioden, die üblicherweise in einem Jahr enden; und

(ii) wenn der Zinsberechnungszeitraum (ii) if the Calculation Period is longer than länger als eine Feststellungsperiode ist, die one Determination Period, the sum of: Summe aus

(A) der Anzahl der Tage in dem (A) the number of days in such Calculation betreffenden Zinsberechnungszeitraum, die in Period falling in the Determination Period in die Feststellungsperiode fallen, in der sie which it begins divided by the number of days beginnt, dividiert durch die Anzahl der Tage in in such Determination Period; and der betreffenden; und

(B) die Anzahl der Tage in dem (B) the number of days in such Calculation betreffenden Zinsberechnungszeitraum, die in Period falling in the next Determination Period

die nachfolgende Feststellungsperiode fallen, divided by the number of days in such dividiert durch die Anzahl der Tage in der Determination Period. betreffenden Feststellungsperiode.

Feststellungsperiode bezeichnet den Zeitraum Determination Period means the period from ab dem 29. Mai eines Jahres (einschließlich) and including the 29 May in any year to but bis zum 29. Mai des Folgejahres excluding the 29 May in the next following (ausschließlich). year.

§4 §4 ZAHLUNGEN PAYMENTS

(1) (a) Zahlungen auf Kapital. Zahlungen von (1) (a) Payment of Principal. Payment of Kapital auf die Schuldverschreibungen principal in respect of Notes shall be made, erfolgen nach Maßgabe des nachstehenden subject to paragraph (2) below, to the Clearing Absatzes (2) an das Clearing System oder System or to its order for credit to the accounts dessen Order zur Gutschrift auf den Konten of the relevant account holders of the Clearing der jeweiligen Kontoinhaber des Clearing System upon presentation and (except in the Systems gegen Vorlage und (außer im Fall von case of partial payment) surrender of the Teilzahlungen) Einreichung der die Global Note representing the Notes at the time Schuldverschreibungen zum Zeitpunkt der of payment at the specified office of the Zahlung verbriefenden Globalurkunde bei der Principal Paying Agent outside the United bezeichneten Geschäftsstelle der States. Hauptzahlstelle außerhalb der Vereinigten Staaten.

(b) Zahlungen von Zinsen. Die Zahlung von (b) Payment of Interest. Payment of interest on Zinsen auf Schuldverschreibungen erfolgt nach Notes shall be made, subject to paragraph (2) Maßgabe des nachstehenden Absatzes 2 an das below, to the Clearing System or to its order Clearing System oder dessen Order zur for credit to the relevant account holders of the Gutschrift auf den Konten der jeweiligen Clearing System. Kontoinhaber des Clearing Systems.

(2) Zahlungsweise. Vorbehaltlich geltender (2) Manner of Payment. Subject to applicable steuerlicher und sonstiger gesetzlicher fiscal and other laws and regulations, payments Regelungen und Vorschriften erfolgen zu of amounts due in respect of the Notes shall be leistende Zahlungen auf die made in Euro. Schuldverschreibungen in Euro.

(3) Vereinigte Staaten. Für die Zwecke des § 1 (3) United States. For purposes of § 1(3) and Absatz 3 und des Absatzes 1 dieses § 4 paragraph 1 of this § 4, United States means bezeichnet Vereinigte Staaten die Vereinigten the United States of America (including the Staaten von Amerika (einschließlich deren States thereof and the District of Columbia) Bundesstaaten und des “District of Columbia”) and its possessions (including Puerto Rico, the sowie deren Territorien (einschließlich Puerto U.S. Virgin Islands, Guam, American Samoa, Ricos, der U.S. Virgin Islands, Guam, Wake Island and Northern Mariana Islands). American Samoa, Wake Island und Northern Mariana Islands).

(4) Erfüllung. Die Emittentin wird durch (4) Discharge. The Issuer shall be discharged Leistung der Zahlung an das Clearing System by payment to, or to the order of, the Clearing oder dessen Order von ihrer Zahlungspflicht System. befreit.

(5) Geschäftstag. Fällt der Fälligkeitstag einer (5) Business Day. If the date for payment of Zahlung in Bezug auf eine any amount in respect of any Note is not a Schuldverschreibung auf einen Tag, der kein Business Day then the Noteholder shall not be Geschäftstag ist, dann hat der entitled to payment until the next such day in Schuldverschreibungsgläubiger keinen the relevant place and shall not be entitled to Anspruch auf Zahlung vor dem nächsten further interest or other payment in respect of Geschäftstag am jeweiligen Geschäftsort. Der such delay. Business Day means a day which Schuldverschreibungsgläubiger ist nicht is a day (other than a Saturday or a Sunday) on berechtigt, weitere Zinsen oder sonstige which both (i) the Clearing System, and (ii) the Zahlungen aufgrund dieser Verspätung zu Trans-European Automated Real-Time Gross verlangen. Geschäftstag bezeichnet einen Tag Settlement Express Transfer System (außer einem Samstag oder Sonntag), an dem (TARGET 2) settle payments. (i) das Clearing System und (ii) das Trans- European Automated Real-Time Gross Settlement Express Transfer System (TARGET 2) Zahlungen abwickeln.

(6) Bezugnahmen auf Kapital und Zinsen. (6) References to Principal and Interest. Bezugnahmen in diesen Reference in these Terms and Conditions to Emissionsbedingungen auf Kapital der principal in respect of the Notes shall be Schuldverschreibungen schließen, soweit deemed to include, as applicable: the Final anwendbar, die folgenden Beträge ein: den Redemption Amount of the Notes; the Early Rückzahlungsbetrag der Redemption Amount of the Notes; and any Schuldverschreibungen; den vorzeitigen other amounts which may be payable under or Rückzahlungsbetrag der in respect of the Notes. Reference in these Schuldverschreibungen; sowie sonstige auf Terms and Conditions to interest in respect of oder in Bezug auf die Schuldverschreibungen the Notes shall be deemed to include, as zahlbaren Beträge. Bezugnahmen in diesen applicable, any Additional Amounts which Emissionsbedingungen auf Zinsen auf may be payable under § 7. Schuldverschreibungen schließen, soweit anwendbar, sämtliche gemäß § 7 zahlbaren zusätzlichen Beträge ein.

(7) Hinterlegung von Kapital und Zinsen. Die (7) Deposit of Principal and Interest. The Emittentin bzw. die Garantin ist berechtigt, Issuer may deposit with the Amtsgericht in beim Amtsgericht Frankfurt am Main Zins- Frankfurt am Main principal or interest not oder Kapitalbeträge zu hinterlegen, die von claimed by Noteholders within twelve months den Schuldverschreibungsgläubigern nicht after the Maturity Date, even though such innerhalb von zwölf Monaten nach dem Noteholders may not be in default of Fälligkeitstag beansprucht worden sind, auch acceptance of payment. If and to the extent that wenn die Schuldverschreibungsgläubiger sich the deposit is effected and the right of nicht in Annahmeverzug befinden. Soweit eine withdrawal is waived, the respective claims of solche Hinterlegung erfolgt, und auf das Recht such Noteholders against the Issuer shall cease. der Rücknahme verzichtet wird, erlöschen die Ansprüche der Schuldverschreibungsgläubiger gegen die Emittentin bzw. die Garantin.

§ 5 § 5 RÜCKZAHLUNG REDEMPTION

(1) Rückzahlung bei Endfälligkeit. Soweit (1) Redemption at Maturity. Unless previously nicht zuvor bereits ganz oder teilweise redeemed in whole or in part or purchased and zurückgezahlt oder angekauft und entwertet, cancelled, the Notes shall be redeemed at their werden die Schuldverschreibungen zu ihrem Final Redemption Amount on 29 Mai 2017 Rückzahlungsbetrag am 29 Mai 2017 (der (the Maturity Date ). The Final Redemption Fälligkeitstag ) zurückgezahlt. Der Amount in respect of each Note shall be its Rückzahlungsbetrag in Bezug auf jede principal amount. Schuldverschreibung entspricht dem Nennbetrag der Schuldverschreibungen.

(2) Vorzeitige Rückzahlung aus steuerlichen (2) Early Redemption for Reasons of Taxation . Gründen . Die Schuldverschreibungen können If as a result of any change in, or amendment insgesamt, jedoch nicht teilweise, nach Wahl to, the laws or regulations of the Federal der Emittentin mit einer Kündigungsfrist von Republic of Germany or any political nicht weniger als 30 und nicht mehr als 60 subdivision or taxing authority thereto or Tagen gegenüber der Hauptzahlstelle gemäß therein affecting taxation or the obligation to § 12 gegenüber den pay duties of any kind, or any change in, or Schuldverschreibungsgläubigern vorzeitig amendment to, an official interpretation or gekündigt und zu ihrem vorzeitigen application of such laws or regulations, which Rückzahlungsbetrag (wie nachstehend amendment or change is effective on or after definiert) zuzüglich bis zum für die the issue date of the Notes, the Issuer is Rückzahlung festgesetzten Tag aufgelaufener required to pay Additional Amounts (as Zinsen zurückgezahlt werden, falls die defined in § 7 herein) on the next succeeding Emittentin als Folge einer Änderung oder Interest Payment Date (as defined in § 3(1)), Ergänzung der Steuer- oder Abgabengesetze the Notes may be redeemed, in whole but not und -vorschriften der Bundesrepublik in part, at the option of the Issuer, upon not Deutschland oder deren politischen more than 60 days’ nor less than 30 days’ prior Untergliederungen oder Steuerbehörden oder notice of redemption given to the Principal als Folge einer Änderung oder Ergänzung der Paying Agent and, in accordance with § 12, to Anwendung oder der offiziellen Auslegung the Noteholders, at their Early Redemption dieser Gesetze und Vorschriften (vorausgesetzt Amount (as defined below) together with diese Änderung oder Ergänzung wird am oder interest, if any, accrued to the date fixed for nach dem Tag der Begebung der redemption. Schuldverschreibungen wirksam) am nächstfolgenden Zinszahlungstag (wie in § 3 Absatz 1 definiert) zur Zahlung von zusätzlichen Beträgen (wie in § 7 dieser Emissionsbedingungen definiert) verpflichtet sein wird.

Eine solche Kündigung hat gemäß § 12 zu Any such notice shall be given in accordance erfolgen. Sie ist unwiderruflich, muss den für with § 12. It shall be irrevocable, must specify die Rückzahlung festgelegten Termin nennen the date fixed for redemption and must set und eine zusammenfassende Erklärung forth a statement in summary form of the facts enthalten, die die das Rückzahlungsrecht der constituting the basis for the right of the Issuer Emittentin begründenden Umstände darlegt. to redeem.

(3) Vorzeitige Rückzahlung aufgrund eines (3) Early Redemption for Reasons of a Change Kontrollwechsels. Wenn zu einem Zeitpunkt, of Control. If at any time while any Notes zu dem die Schuldverschreibungen noch nicht remain outstanding there occurs a Change of vollständig zurückgezahlt sind, ein Control and in the period between the Potential Kontrollwechsel eintritt und im Zeitraum Change of Control Announcement and the end

zwischen der Potentiellen Kontrollwechsel- of the Change of Control Period a Rating Mitteilung und dem Ende der Downgrade occurs (together, a Put Event ), Kontrollwechselfrist eine Herabstufung des each Noteholder will have the option to require Ratings erfolgt (zusammen ein the issuer to redeem each of the Notes held by Rückzahlungsereignis ), so hat jeder such Noteholder on the Mandatory Schuldverschreibungsgläubiger das Recht, von Redemption Date at its principal amount der Emittentin zu verlangen, seine together with interest accrued to but excluding Schuldverschreibungen am Obligatorischen the Mandatory Redemption Date. Rückzahlungstag zum Nennbetrag zuzüglich Zinsen bis zum Obligatorischen Rückzahlungstag (ausschließlich) zurückzuzahlen.

Sobald die Garantin davon Kenntnis erhält, Promptly upon the Guarantor becoming aware dass ein Rückzahlungsereignis eingetreten ist, that a Put Event has occurred the Guarantor hat sie den Schuldverschreibungsgläubigern shall give notice (a Put Event Notice ) to the dies unverzüglich gemäß § 12 mitzuteilen (eine Noteholders in accordance with § 12 Rückzahlungsereignismitteilung ). In der specifying the nature of the Put Event and the Rückzahlungsereignismitteilung sind die Art circumstances giving rise to it and the des Rückzahlungsereignisses anzugeben, die procedure for exercising the option set out in Umstände, die zu dem Rückzahlungsereignis this § 5(3). geführt haben, sowie die Modalitäten der Ausübung des in diesem § 5 Absatz 3 geregelten Rechts auf vorzeitige Rückzahlung.

Die wirksame Ausübung des in diesem § 5 In order to exercise the right to require geregelten Rechts auf vorzeitige Rückzahlung redemption under this § 5, the Noteholder of setzt voraus, dass der the Notes must, within the Put Period, give Schuldverschreibungsgläubiger innerhalb der notice to the Principal Paying Agent of such Ausübungsfrist der Hauptzahlstelle entweder exercise either by means of a written notice to eine schriftliche Erklärung übergibt oder der be delivered by hand or registered mail to the Hauptzahlstelle durch eingeschriebenen Brief Principal Paying Agent or in accordance with übersendet oder nach dem hierfür von the standard procedures of Euroclear and CBL Euroclear und CBL vorgesehenen Prozedere (which may include notice being given on his (welches auch vorsehen kann, dass die instruction by Euroclear and CBL or any Mitteilung durch oder auf Veranlassung von common depositary for them to the Principal Euroclear und CBL oder einer gemeinsamen Paying Agent by electronic means) in a form Verwahrstelle auf elektronischem Wege an die acceptable to Euroclear and CBL from time to Hauptzahlstelle übermittelt wird), das time. In such exercise notice the relevant Euroclear und CBL von Zeit zu Zeit festgelegt exercising Noteholder must state (i) the wird, mitgeteilt hat, dass er das Recht auf number of Notes in respect of which the vorzeitige Rückzahlung ausübt. In dieser redemption right will be exercised and (ii) the Ausübungsmitteilung sind von dem jeweiligen ISIN of the Notes (i.e. ISIN XS0511389453). ausübenden Schuldverschreibungsgläubiger (i) The exercise of the redemption right by a die Anzahl der Schuldverschreibungen, für die Noteholder is irrevocable. das Kündigungsrecht ausgeübt wird und (ii) die ISIN der Schuldverschreibungen (d.h. ISIN XS0511389453) anzugeben. Die Ausübung des Rechts auf vorzeitige Rückzahlung durch einen Schuldverschreibungsgläubiger ist unwiderruflich.

In dieser Bestimmung haben die folgenden For the purposes of this Condition: Begriffe die folgende Bedeutung:

Ein Kontrollwechsel gilt als eingetreten, wenn A Change of Control shall be deemed to have eine Person oder abgestimmt handelnde occurred if a person or persons acting in Personen, die am Ausgabetag der concert, that did not have Control (alone or Schuldverschreibungen noch keine Kontrolle together with others) of the Guarantor on the (allein oder gemeinsam mit anderen) über die issue date of the Notes acquires or acquire Garantin gehabt hat oder haben, Kontrolle über Control of the Guarantor, provided that no die Garantin erlangt oder erlangen, wobei Change of Control shall be deemed to have jedoch kein Kontrollwechsel als eingetreten occurred if a person or persons acting in gilt, wenn eine Person oder abgestimmt concert that are eligible to succeed handelnde Personen, die nachfolgeberechtigt (nachfolgeberechtigt ) pursuant to § 16(3) of gemäß § 16 Absatz 3 des the articles of association of the Guarantor as Gesellschaftervertrags der Garantin in der in effect on 6 June 2009 acquires or acquire Fassung vom 6. Juni 2009 ist bzw. sind, Control of the Guarantor. Kontrolle über die Garantin erlangt oder erlangen.

Kontrolle bedeutet in Bezug auf die Garantin Control means in relation to the Guarantor the die Möglichkeit, auf die Garantin unmittelbar ability to directly or indirectly control the oder mittelbar einen beherrschenden Einfluss affairs of the Guarantor pursuant to § 17 of the gemäß § 17 Aktiengesetz ausüben zu können. German Stock Corporation Act ( Aktiengesetz ).

Kontrollwechselfrist ist der Zeitraum, der 120 Change of Control Period means the period Tage nach dem Mitteilungstag endet. ending 120 days after the Date of Announcement.

Mitteilungstag ist der Tag, an dem die Date of Announcement means the date of the Garantin bzw. eine Person oder gemeinsam first public announcement by the Guarantor or handelnde Personen, die die Kontrolle a person or persons acting in concert which übernehmen, zum ersten Mal mitteilt bzw. acquire(s) Control, as the case may be, that a mitteilen, dass ein Kontrollwechsel eingetreten Change of Control has occurred. ist.

Potentielle Kontrollwechsel-Mitteilung ist Potential Change of Control Announcement der Tag einer formalen öffentlichen means the date of any formal public Bekanntmachung oder Ankündigung von oder announcement or statement by or on behalf of im Namen der Garantin oder einem the Guarantor, or any actual or potential bidder tatsächlichen oder potentiellen Bieter oder or any advisor thereto relating to any potential diesbezüglichem Berater in Bezug auf einen Change of Control. potentiellen Kontrollwechsel.

Obligatorischer Rückzahlungstag ist der Mandatory Redemption Date is the seventh siebte Tag nach dem letzten Tag der day after the last day of the Put Period. Ausübungsfrist.

Ausübungsfrist ist der Zeitraum von 45 Tagen Put Period means the period of 45 days from seit der Abgabe einer and including the date on which a Put Event Rückzahlungsereignismitteilung (wobei der Notice is given Tag der Rückzahlungsereignismitteilung mitzuzählen ist).

Ratingagentur(en) sind Standard & Poor's Rating Agency/ies means Standard & Poor's Rating Services, a division of The McGraw- Rating Services, a division of The McGraw- Hill Companies, Inc. (S&P ), Moody's Hill Companies, Inc. ( S&P ) and Moody's Investors Services Limited ( Moody's ) und ihre Investors Services Limited (Moody's ) or any jeweiligen Nachfolgeunternehmen sowie jede of their respective successors or any other

andere Ratingagentur von internationalem rating agency of equivalent international Rang, die von oder im Namen der Garantin standing from time to time appointed by or on beauftragt worden ist. behalf of the Guarantor.

Eine Herabstufung des Ratings liegt vor, Rating Downgrade occurs if within the wenn innerhalb der Kontrollwechselfrist ein Change of Control Period any long-term rating vorher für die Garantin vergebenes previously assigned to the Guarantor is by any langfristiges Rating von einer Ratingagentur Rating Agency

(i) zurückgezogen oder (i) withdrawn or

(ii) von einem Investment Grade Rating (ii) changed from an investment grade (BBB- von S&P/Baa3 von Moody's oder rating (BBB- by S&P/Baa3 by Moody's, or its jeweils gleichwertig, oder besser) in ein non- equivalent for the time being, or better) to a lnvestment Grade Rating (BB+ von S&P/Ba1 non-investment grade rating (BB+ by von Moody's oder jeweils gleichwertig, oder S&P/Ba1 by Moody's, or its equivalent for the schlechter) geändert wird oder time being, or worse) or

(iii) innerhalb der non-lnvestment Grade (iii) lowers the long-term rating within the Rating-Kategorie gesenkt wird, sofern alle non-investment grade rating category if all Ratingagenturen für die Garantin ein non- Rating Agencies have rated the Guarantor with lnvestment Grade Rating vergeben haben, a non-investment grade rating,

(4) Vorzeitiger Rückzahlungsbetrag. Für die (4) Early Redemption Amount. For purposes of Zwecke von Absatz 2 und 3 dieses § 5 und § 9 paragraph 2 and 3 of this § 5 and § 9, the Early entspricht der vorzeitige Rückzahlungsbetrag Redemption Amount of a Note shall be its einer Schuldverschreibung dem Final Redemption Amount. Rückzahlungsbetrag.

§ 6 § 6 HAUPTZAHLSTELLE PRINCIPAL PAYING AGENT

(1) Bestellung; bezeichnete Geschäftsstell e. (1) Appointment; Specified Offices. The initial Die anfänglich bestellte Hauptzahlstelle und Principal Paying Agent and its initial specified deren anfänglich bezeichnete Geschäftsstelle offices is: lautet wie folgt:

Deutsche Bank Aktiengesellschaft Deutsche Bank Aktiengesellschaft Große Gallusstraße 10-14 Grosse Gallusstrasse 10-14 60272 Frankfurt am Main 60272 Frankfurt am Main Bundesrepublik Deutschland Germany

Die Hauptzahlstelle behält sich das Recht vor, The Principal Paying Agent reserves the right jederzeit die bezeichnete Geschäftsstelle durch at any time to change its specified office to eine andere bezeichnete Geschäftsstelle in some other specified office in the same city. derselben Stadt zu ersetzen.

(2) Änderung der Bestellung oder Abberufung . (2) Variation or Termination of Appointment . Die Emittentin behält sich das Recht vor, The Issuer reserves the right at any time to jederzeit die Bestellung der Hauptzahlstelle zu vary or terminate the appointment of the ändern oder zu beenden und eine andere Principal Paying Agent and to appoint another Hauptzahlstelle oder eine oder mehrere Principal Paying Agent or on or more other zusätzliche Zahlstellen zu bestellen. Die additional paying agents. The Issuer shall at all Emittentin wird jederzeit (i) eine times maintain (i) a Principal Paying Agent, Hauptzahlstelle unterhalten, (ii) eine Zahlstelle (ii) a paying agent (which may be the Principal

(die die Hauptzahlstelle sein kann) mit Paying Agent) with a specified office in a bezeichneter Geschäftsstelle in einer continental European city and (iii) so long as kontinentaleuropäischen Stadt unterhalten und the Notes are listed on the Luxembourg Stock (iii) solange die Schuldverschreibungen an der Exchange a paying agent (which may be the Luxemburger Börse notiert sind, eine Principal Paying Agent) which is a credit or Zahlstelle (die die Hauptzahlstelle sein kann) financial institution that is able to settle unterhalten, bei der es sich um ein Kredit- oder payments on the Notes in Luxembourg. Any Finanzinstitut handelt, das Zahlungen variation, termination, appointment or change bezüglich der Schuldverschreibungen in shall only take effect (other than in the case of Luxemburg abwickeln kann. Eine Änderung, insolvency, when it shall be of immediate Abberufung, Bestellung oder ein sonstiger effect) after not less than 30 nor more than 45 Wechsel wird nur wirksam (außer im days’ prior notice thereof shall have been Insolvenzfall, in dem eine solche Änderung given to the Noteholders in accordance with sofort wirksam wird), sofern die § 12. Schuldverschreibungsgläubiger hierüber gemäß § 12 vorab unter Einhaltung einer Frist von mindestens 30 und nicht mehr als 45 Tagen informiert wurden.

(3) Beauftragte der Emittentin. Die (3) Agents of the Issuer. The Principal Paying Hauptzahlstelle und jede etwaige Zahlstelle Agent and any paying agent act solely as handeln ausschließlich als Beauftragte der agents of the Issuer and do not have any Emittentin und übernehmen keinerlei obligations towards or relationship of agency Verpflichtungen gegenüber den or trust to any Noteholder. Schuldverschreibungsgläubigern; es wird kein Auftrags- oder Treuhandverhältnis zwischen ihnen und den Schuldverschreibungsgläubigern begründet.

§ 7 § 7 STEUERN TAXATION

Sämtliche auf die Schuldverschreibungen zu All amounts payable in respect of the Notes zahlenden Beträge sind an der Quelle ohne shall be made at source without withholding or Einbehalt oder Abzug von oder aufgrund von deduction for or on account of any present or gegenwärtigen oder zukünftigen Steuern oder future taxes or duties of whatever nature sonstigen Abgaben gleich welcher Art zu imposed or levied by way of withholding or leisten, die von oder in der Bundesrepublik deduction at source by or on behalf of the Deutschland oder für deren Rechnung oder von Federal Republic of Germany or any political oder für Rechnung einer politischen subdivision or any authority thereof or therein Untergliederung oder Steuerbehörde derselben having power to tax unless the Issuer is auferlegt oder erhoben werden, es sei denn, die required by law to make such withholding or Emittentin ist gesetzlich zu einem solchen deduction. In such event, the Issuer shall pay Einbehalt oder Abzug verpflichtet. In diesem such additional amounts (the Additional Fall wird die Emittentin diejenigen Amounts ) as shall be necessary in order that zusätzlichen Beträge (die zusätzlichen the net amounts received by the Noteholders Beträge ) zahlen, die erforderlich sind, damit after such withholding or deduction shall equal die den Schuldverschreibungsgläubigern the respective amounts which would otherwise zufließenden Nettobeträge nach einem solchen have been receivable in the absence of such Einbehalt oder Abzug jeweils den Beträgen withholding or deduction except that no such entsprechen, die ohne einen solchen Einbehalt Additional Amounts shall be payable on oder Abzug von den account of any taxes or duties which: Schuldverschreibungsgläubigern empfangen worden wären; die Verpflichtung zur Zahlung

solcher zusätzlichen Beträge besteht jedoch nicht für solche Steuern und Abgaben, die:

(a) von einer als Depotbank oder (a) are payable by any person acting as Inkassobeauftragter des custodian bank or collecting agent on behalf of Schuldverschreibungsgläubigers handelnden a Noteholder, or otherwise in any manner Person zu entrichten sind oder sonst auf andere which does not constitute a deduction or Weise zu entrichten sind als dadurch, dass die withholding by the Issuer from payments of Emittentin von den von ihr zu leistenden principal or interest made by it; or Zahlungen von Kapital oder Zinsen einen Abzug oder Einbehalt vornimmt, oder

(b) wegen einer gegenwärtigen oder früheren (b) are payable by reason of the Noteholder persönlichen oder geschäftlichen Beziehung having, or having had, some personal or des Schuldverschreibungsgläubigers zur business connection with Germany and not Bundesrepublik Deutschland zu zahlen sind, merely by reason of the fact that payments in und nicht allein deshalb, weil Zahlungen auf respect of the Notes are, or for purposes of die Schuldverschreibungen aus Quellen in der taxation are deemed to be, derived from Bundesrepublik Deutschland stammen (oder sources in, or are secured in, Germany; or für Zwecke der Besteuerung so behandelt werden) oder dort besichert sind, oder

(c) aufgrund (i) einer Richtlinie oder (c) are deducted or withheld pursuant to (i) any Verordnung der Europäischen Union bezüglich European Union Directive or Regulation der Besteuerung von Zinserträgen oder concerning the taxation of interest income, or (ii) einer zwischenstaatlichen Vereinbarung (ii) any international treaty or understanding über deren Besteuerung, an der die relating to such taxation and to which Bundesrepublik Deutschland oder die Germany or the European Union is a party, or Europäische Union beteiligt ist, oder (iii) einer (iii) any provision of law implementing, or gesetzlichen Vorschrift, die der Umsetzung complying with, or introduced to conform dieser Richtlinie, Verordnung oder with, such Directive, Regulation, treaty or Vereinbarung dient, dieser entspricht oder zur understanding; or Anpassung an diese Richtlinie, Verordnung oder Vereinbarung eingeführt wurde, abzuziehen oder einzubehalten sind, oder

(d) von einer Zahlstelle abgezogen oder (d) are deducted or withheld by a paying agent einbehalten werden, wenn eine andere from a payment if the payment could have Zahlstelle die Zahlung ohne einen solchen been made by another Paying Agent without Abzug oder Einbehalt hätte leisten können, such deduction or withholding; or oder

(e) nicht zu entrichten wären, wenn die (e) would not be payable if the Notes had been Schuldverschreibungen bei einem kept in safe custody with, and the payments Kreditinstitut verwahrt und die Zahlungen von had been collected by, a banking institution; or diesem eingezogen worden wären, oder

(f) aufgrund einer Rechtsänderung oder einer (f) are payable by reason of a change in law or Änderung in der Rechtsanwendung zahlbar practice that becomes effective more than sind, die später als dreißig Tage nach Fälligkeit thirty days after the relevant payment of der betreffenden Zahlung von Kapital oder principal or interest becomes due, or is duly Zinsen oder, wenn dies später erfolgt, provided for and notice thereof is published in ordnungsgemäßer Bereitstellung aller fälligen accordance with § 12, whichever occurs later. Beträge und einer diesbezüglichen Mitteilung gemäß § 12 wirksam wird

§ 8 § 8 VORLEGUNGSFRIST PRESENTATION PERIOD

Die in § 801 Absatz 1 Satz 1 BGB bestimmte The presentation period provided in § 801(1), Vorlegungsfrist wird für die sentence 1 BGB (German Civil Code) is Schuldverschreibungen auf zehn Jahre reduced to ten years for the Notes. abgekürzt.

§ 9 § 9 KÜNDIGUNG TERMINATION

(1) Kündigungsgründe. Jeder (1) Events of Default. Each Noteholder shall be Schuldverschreibungsgläubiger ist berechtigt, entitled to declare his Notes due and demand seine Schuldverschreibungen zu kündigen und immediate redemption thereof at the Early deren sofortige Rückzahlung zu ihrem Redemption Amount (as described in § 5), vorzeitigen Rückzahlungsbetrag (wie in § 5 together with accrued interest (if any) to the beschrieben), zuzüglich etwaiger bis zum Tage date of repayment, in the event that: der Rückzahlung aufgelaufener Zinsen zu verlangen, falls:

(a) die Emittentin Kapital oder Zinsen nicht (a) the Issuer fails to pay principal or interest innerhalb von 30 Tagen nach dem betreffenden within 30 days from the relevant due date; or Fälligkeitstag zahlt; oder

(b) die Emittentin die ordnungsgemäße (b) the Issuer fails to duly perform any other Erfüllung irgendeiner anderen Verpflichtung obligation arising from the Notes and the aus den Schuldverschreibungen oder die Guarantor fails to perform any obligation Garantin die Erfüllung einer Verpflichtung aus arising from the Guarantee as set out in § 2 and der Garantie auf die in § 2 Bezug genommen such failure is not capable of remedy or, if wird, unterlässt und diese Unterlassung nicht such failure is capable of remedy, such failure geheilt werden kann oder, falls sie geheilt continues for more than 30 days after the werden kann, länger als 30 Tage fortdauert, Principal Paying Agent has received notice nachdem die Hauptzahlstelle hierüber eine thereof from a Noteholder, or Benachrichtigung von einem Schuldverschreibungsgläubiger erhalten hat; oder

(c) die Emittentin oder die Garantin mit der (c) the Issuer or the Guarantor fails to comply Erfüllung einer Verpflichtung zur Zahlung von in a timely manner with its obligation to pay Kapital, Zinsen oder einem etwaigen Betrag principal, interest or any amount under any aus einer Kredit- oder sonstigen Geldaufnahme monies borrowed or raised or guaranteed by mit einer Mindestlaufzeit von einem Jahr und the Issuer or the Guarantor or for which the einem Mindestbetrag in Höhe von € Issuer or the Guarantor has otherwise assumed 30.000.000 oder aus einer anderen liability with a minimum term of one year and Kapitalmarktverbindlichkeit (wie in § 2 a minimum amount of €30,000,000 or under definiert), die von der Emittentin oder der any other Capital Markets Indebtedness (as Garantin aufgenommen, begeben oder defined in § 2) issued or guaranteed by the garantiert wurde, oder für die die Emittentin Issuer or the Guarantor or for which the Issuer oder die Garantin anderweitig die Haftung or the Guarantor has otherwise assumed übernommen hat, in Verzug gerät; oder liability; or

(d) die Emittentin oder die Garantin ihre (d) the Issuer or the Guarantor announces its Zahlungsunfähigkeit bekanntgibt oder ihre inability to meet its financial obligations or

Zahlungen einstellt; oder ceases its payments; or

(e) ein Gericht ein Insolvenzverfahren gegen (e) a court opens insolvency proceedings die Emittentin oder die Garantin eröffnet, oder against the Issuer or the Guarantor, or the die Emittentin oder die Garantin oder eine Issuer Guarantor or a supervisory or other Aufsichts- oder sonstige Behörde, deren authority which has jurisdiction over the Issuer Zuständigkeit die Emittentin oder die Garantin or the Guarantor institutes or applies for such unterliegt, ein solches Verfahren einleitet oder proceedings, or the Issuer or the Guarantor beantragt oder die Emittentin oder die Garantin offers or makes an arrangement for the benefit eine allgemeine Schuldenregelung zugunsten of its creditors generally; or ihrer Gläubiger anbietet oder trifft; oder

(f) die Emittentin oder die Garantin aufgelöst (f) the Issuer or the Guarantor is dissolved or oder liquidiert wird, es sei denn, dass die liquidated, unless such dissolution or Auflösung oder Liquidation im liquidation is made in connection with a Zusammenhang mit einer Verschmelzung oder merger, consolidation or other combination einem sonstigen Zusammenschluss mit einem with any other entity, provided that such other anderen Rechtsgebilde erfolgt, sofern dieses entity assumes all obligations of the Issuer andere Rechtsgebilde alle Verbindlichkeiten arising under the Notes; or der Emittentin oder der Garantin aus den Schuldverschreibungen übernimmt; oder

(g) die Emittentin oder die Garantin ihren (g) the Issuer or the Guarantor ceases or Geschäftsbetrieb einstellt oder damit droht; threatens to cease to carry on its business; or oder

(h) in der Bundesrepublik Deutschland (h) any governmental order, decree or irgendein Gesetz, eine Verordnung oder enactment shall be made in or by the Federal behördliche Anordnung erlassen wird oder Republic of Germany whereby the Issuer or ergeht, aufgrund derer die Emittentin oder die the Guarantor is prevented from observing and Garantin daran gehindert wird, die von ihr performing in full its obligations as set forth in gemäß diesen Emissionsbedingungen these Terms and Conditions and this situation übernommenen Verpflichtungen in vollem is not cured within 90 days. Umfang zu beachten und zu erfüllen und diese Lage nicht binnen 90 Tagen behoben ist.

Das Kündigungsrecht erlischt, falls der The right to declare Notes due shall terminate Kündigungsgrund vor Ausübung des Rechts if the situation giving rise to it has been cured geheilt wurde. before the right is exercised.

(2) Benachrichtigung. Eine Benachrichtigung, (2) Notice. Any notice, including any notice einschließlich einer Kündigung der declaring Notes due in accordance with Schuldverschreibungen gemäß Absatz 1 dieses paragraph 1 of this § 9, shall be made by § 9 ist schriftlich in deutscher oder englischer means of a written declaration in the German Sprache gegenüber der Hauptzahlstelle zu or English language delivered by hand or erklären und persönlich oder per Einschreiben registered mail to the specified office of the an deren bezeichnete Geschäftsstelle zur Principal Paying Agent to be forwarded to the Weiterleitung an die Garantin zu übermitteln. Guarantor by the Principal Paying Agent Der Benachrichtigung ist ein Nachweis together with proof that such Noteholder at the beizufügen, aus dem sich ergibt, dass der time of such notice is a holder of the relevant betreffende Schuldverschreibungsgläubiger Notes by means of a certificate of his zum Zeitpunkt der Abgabe der Custodian (as defined in § 14(4)) or in another Benachrichtigung Inhaber der betreffenden appropriate manner. Schuldverschreibung ist. Der Nachweis kann durch eine Bescheinigung der Depotbank (wie

in § 14 Absatz 4 definiert) oder auf andere geeignete Weise erbracht werden.

§ 10 § 10 ERSETZUNG SUBSTITUTION

(1) Ersetzun g. Die Emittentin ist jederzeit (1) Substitution . The Issuer may, without the berechtigt, ohne Zustimmung der consent of the Noteholders at any time Schuldverschreibungsgläubiger an ihrer Stelle substitute for the Issuer either the Guarantor or die Garantin oder ein verbundenes any affiliate ( verbundenes Unternehmen ) Unternehmen im Sinne von § 15 Aktiengesetz within the meaning of § 15 of the German der Garantin mit Sitz in den Niederlanden oder Stock Corporation Act ( Aktiengesetz ) of the einem anderen Staat als Hauptschuldnerin (die Guarantor having its seat in the Netherlands or Nachfolgeschuldnerin ) für alle another state as principal debtor in respect of Verpflichtungen aus und im Zusammenhang all obligations arising from or in connection mit den Schuldverschreibungen einzusetzen, with the Notes (the Substitute Debtor ) vorausg esetzt, dass : provided that: (a) kein Verzug in Bezug auf die Zahlung von (a) no payment of principal of or interest on Kapital oder Zinsen auf die any of the Notes is in default; Schuldverschreibungen vorliegt,

(b) die Emittentin und die (b) the Issuer and the Substituted Debtor have Nachfolgeschuldnerin einen Vertrag zugunsten entered into an agreement in favour of each jedes Schuldverschreibungsgläubigers als Noteholder as third party beneficiary pursuant begünstigtem Dritten gemäß § 328 Absatz 1 to § 328(1) of the German Civil Code BGB, in dem sich die Nachfolgeschuldnerin (Bürgerliches Gesetzbuch ; BGB) in which the verpflichtet hat, an die Regelungen dieser Substituted Debtor has undertaken to be bound Emissionsbedingungen und des Agency by these Terms and Conditions and the Agreements als Schuldnerin in Bezug auf die provisions of the Agency Agreement as the Schuldverschreibungen gebunden zu sein. debtor in respect of the Notes;

(c) die Emittentin und die (c) the Issuer and the Substitute Debtor have Nachfolgeschuldnerin alle erforderlichen obtained all necessary authorisations and may Genehmigungen erhalten haben und berechtigt transfer to the Principal Paying Agent in the sind, an die Hauptzahlstelle die zur Erfüllung currency required hereunder and without being der Zahlungsverpflichtungen aus den obligated to deduct or withhold any taxes or Schuldverschreibungen zahlbaren Beträge, in other duties of whatever nature levied by the der hierin festgelegten Währung zu zahlen, country in which the Substitute Debtor or the ohne verpflichtet zu sein, jeweils in dem Land, Issuer has its domicile or tax residence, all in dem die Nachfolgeschuldnerin oder die amounts required for the fulfilment of the Emittentin ihren Sitz oder Steuersitz haben, payment obligations arising under the Notes; erhobene Steuern oder andere Abgaben jeder Art abzuziehen oder einzubehalten,

(d) die Nachfolgeschuldnerin sich verpflichtet (d) the Substitute Debtor has agreed to hat, jeden Schuldverschreibungsgläubiger indemnify and hold harmless each Noteholder hinsichtlich solcher Steuern, Abgaben oder against any tax, duty, assessment or behördlichen Lasten freizustellen, die einem governmental charge imposed on such Schuldverschreibungsgläubiger in Folge der Noteholder as a consequence of such Ersetzung auferlegt werden, und substitution; and

(e) die Garantin, sofern sie nicht selbst die (e) the Guarantor if it is not itself the Substitute Nachfolgeschuldnerin ist, unwiderruflich und Debtor irrevocably and unconditionally unbedingt gegenüber den guarantees in favour of each Noteholder the Schuldverschreibungsgläubigern die Zahlung payment of all sums payable by the Substitute aller von der Nachfolgeschuldnerin auf die Debtor in respect of the Notes on terms Schulverschreibungen zahlbaren Beträge zu equivalent to the terms of the Guarantee (as Bedingungen garantiert, die den Bedingungen defined in § 2(3)). der Garantie (wie in § 2 Absatz 3 definiert) entsprechen . (2) Bekanntmachung. Jede Ersetzung ist gemäß (2) Notice. Notice of any such substitution § 12 bekannt zu machen. shall be published in accordance with § 12.

(3) Änderung von Bezugnahmen. Im Falle (3) Change of References. In the event of any einer Ersetzung gilt jede Bezugnahme in such substitution, any reference in these Terms diesen Emissionsbedingungen auf die and Conditions to the Issuer shall from then on Emittentin ab dem Zeitpunkt der Ersetzung als be deemed to refer to the Substitute Debtor. If Bezugnahme auf die Nachfolgeschuldnerin. In the Substitute Debtor is not domiciled in the § 7 und § 5 Absatz 2 gilt, falls die Federal Republic of Germany, an alternative Nachfolgeschuldnerin nicht ihren Sitz in der reference to the country of domicile of the Bundesrepublik Deutschland haben sollte, eine Substitute Debtor shall be deemed to have alternative Bezugnahme auf das Land, in dem been included in § 7 and § 5(2) in addition to die Nachfolgeschuldnerin ihren Sitz hat, the reference to the Federal Republic of zusätzlich zu der Bezugnahme auf die Germany. Bundesrepublik Deutschland als aufgenommen.

§ 11 § 11 BEGEBUNG WEITERER FURTHER ISSUES, PURCHASES AND SCHULDVERSCHREIBUNGEN, CANCELLATION ANKAUF UND ENTWERTUNG

(1) Begebung weiterer Schuldverschreibungen. (1) Further Issues. The Issuer may from time Die Emittentin ist berechtigt, jederzeit ohne to time, without the consent of the Zustimmung der Noteholders, issue further Notes having the Schuldverschreibungsgläubiger weitere same terms and conditions as the Notes in all Schuldverschreibungen mit gleicher respects (or in all respects except for the issue Ausstattung (gegebenenfalls mit Ausnahme date, interest commencement date and/or issue des Tags der Begebung, des price) so as to form a single Series with the Verzinsungsbeginns und/oder des Notes. Ausgabepreises) in der Weise zu begeben, dass sie mit diesen Schuldverschreibungen eine einheitliche Serie bilden.

(2) Ankauf. Die Emittentin ist berechtigt, (2) Purchases. The Issuer may at any time Schuldverschreibungen im Markt oder purchase Notes in the open market or anderweitig zu jedem beliebigen Preis zu otherwise and at any price. Notes purchased by kaufen. Die von der Emittentin erworbenen the Issuer may, at the option of the Issuer, be Schuldverschreibungen können nach Wahl der held, resold or surrendered to the Principal Emittentin von ihr gehalten, weiterverkauft Paying Agent for cancellation. If purchases are oder bei der Hauptzahlstelle zwecks made by tender, tenders for such Notes must Entwertung eingereicht werden. Sofern diese be made available to all Noteholders alike. Käufe durch öffentliches Angebot erfolgen, muss dieses Angebot allen Schuldverschreibungsgläubigern gemacht werden.

(3) Entwertung. Sämtliche vollständig (3) Cancellation. All Notes redeemed in full zurückgezahlten Schuldverschreibungen sind shall be cancelled forthwith and may not be unverzüglich zu entwerten und können nicht reissued or resold. wiederbegeben oder wiederverkauft werden.

§ 12 § 12 MITTEILUNGEN NOTICES

(1) Bekanntmachung. Alle die (1) Publication. All notices concerning the Schuldverschreibungen betreffenden Notes shall be published on the internet Mitteilungen sind auf der Internetseite der website of the Luxembourg Stock Exchange Luxemburger Börse (ww.bourse.lu) zu (ww.bourse.lu). Any notice so given will be veröffentlichen. Jede derartige Mitteilung gilt deemed to have been validly given on the third am dritten Kalendertag nach dem Tag der calendar day following such publication (or, if Veröffentlichung (oder bei mehreren published more than once, on the third Veröffentlichungen am dritten Kalendertag calendar day following the date of the first nach dem Tag der ersten solchen such publication). Veröffentlichung) als wirksam erfolgt.

(2) Mitteilungen an das Clearing System . (2) Notification to Clearing System . As long as Solange Schuldverschreibungen an der any Note is listed on the Luxembourg Stock Luxemburger Börse notiert sind, findet Absatz Exchange, paragraph (1) shall apply. However, 1 Anwendung. Soweit dies Mitteilungen über if the rules of the Luxembourg Stock Exchange den Zinssatz betrifft oder die Regeln der so permit, the Issuer may deliver the relevant Luxemburger Börse es zulassen, kann die notice (e.g. notices regarding the rate of Emittentin eine Veröffentlichung nach Absatz interest) to the Clearing System for 1 (zum Beispiel Mitteilungen bezüglich des communication by the Clearing System to the Zinssatzes) durch eine Mitteilung an das Noteholders in lieu of a publication in Clearing System zur Weiterleitung an die accordance with paragraph (1) above. Any Schuldverschreibungsgläubiger ersetzen. Jede such notice shall be deemed to have been given derartige Mitteilung gilt am fünften to the Noteholders on fifth Business Day after Geschäftstag nach dem Tag der Mitteilung an the said notice was given to the relevant das Clearing System als wirksam erfolgt. Clearing System.

§ 13 § 13 BESCHLÜSSE DER GLÄUBIGER RESOLUTIONS OF NOTEHOLDERS

(1) Beschlussgegenstände . Die (1) Matters subject to resolutions . The Schuldverschreibungsgläubiger können gemäß Noteholders may agree in accordance with the dem Schuldverschreibungsgesetz durch German Bond Act Mehrheitsbeschluss die Emissionsbedingungen (Schuldverschreibungsgesetz ) by majority

und/oder die Garantie ändern, einen resolution to amend the Conditions and/or the gemeinsamen Vertreter aller Guarantee, to appoint a joint representative of Schuldverschreibungsgläubiger bestellen und all Noteholders and on all other matters über alle anderen gesetzlich zugelassenen permitted by law. Beschlussgegenstände beschließen.

(2) Mehrheitserfordernisse für Änderungen der (2) Majority requirements for amendments to Emissionsbedingungen. Die the Terms and Conditions . Resolutions relating Schuldverschreibungsgläubiger entscheiden to material amendments to the Conditions mit einer Mehrheit von 75% ( Qualifizierte and/or the Guarantee, in particular consents to Mehrheit ) der an der Abstimmung the measures set out in § 5(3) of the German teilnehmenden Stimmrechte über wesentliche Bond Act ( Schuldverschreibungsgesetz ), shall Änderungen der Bedingungen und/oder der be passed by a majority of not less than 75% of Garantie, insbesondere die in § 5 Absatz 3 des the votes cast ( Qualified Majority ). Schuldverschreibungsgesetzes aufgeführten Resolutions relating to amendments to the Maßnahmen. Beschlüsse, durch die der Conditions and/or the Guarantee which are not wesentliche Inhalt der Bedingungen und/oder der material, require a simple majority of not less Garantie nicht geändert wird, bedürfen zu ihrer than 50% of the votes cast ( Simple Majority ). Wirksamkeit einer einfachen Mehrheit von Each Noteholder participating in any vote shall mindestens 50% der teilnehmenden cast votes in accordance with the nominal Stimmrechte ( Einfache Mehrheit ). Jeder amount or the notional share of its entitlement Schuldverschreibungsgläubiger nimmt an to the outstanding Notes. Any amendment of Abstimmungen nach Maßgabe des Nennwerts the Terms and Conditions requires the consent oder des rechnerischen Anteils seiner of the Issuer and the Guarantor. Berechtigung an den ausstehenden Schuldverschreibungen teil. Jede Änderung der Emissionsbedingungen bedarf der Zustimmung der Emittentin und der Garantin.

(3) Beschlussfassung. Beschlüsse der (3) Passing of resolutions. Noteholders shall Schuldverschreibungsgläubiger werden im Wege pass resolutions by vote taken without a einer Abstimmung ohne Versammlung nach § 18 physical meeting ( Abstimmung ohne Schuldverschreibungsgesetz getroffen, es sei Versammlung ) pursuant to § 18 of the Bond denn die Emittentin stimmt einer physischen Act unless the Issuer consents to a physical Schuldverschreibungsgläubigerversammlung noteholder meeting pursuant to § 9 of the Bond gemäß § 9 Schuldverschreibungsgesetz zu. Act.

(4) Nachweise. Die (4) Proof of eligibility . The Noteholders must Schuldverschreibungsgläubiger haben die demonstrate their eligibility to participate in Berechtigung zur Teilnahme an der Abstimmung the vote at the time of voting by means of a zum Zeitpunkt der Stimmabgabe durch special confirmation of the Custodian in besonderen Nachweis der Depotbank gemäß accordance with § 14(5) of these Terms and § 14 Absatz 5 dieser Emissionsbedingungen und Conditions and by submission of a blocking die Vorlage eines Sperrvermerks der Depotbank instruction by the Custodian for the voting für den Abstimmungszeitraum nachzuweisen. period.

(5) Gemeinsamer Vertreter . Die (5) Joint Representative . The Noteholders may Schuldverschreibungsgläubiger können durch by majority resolution provide for the Mehrheitsbeschluss zur Wahrnehmung ihrer appointment or dismissal of a joint Rechte einen gemeinsamen Vertreter (der representative (the Joint Representative ), the gemeinsame Vertreter ) für alle duties and responsibilities and the powers of Schuldverschreibungsgläubiger bestellen, die such Joint Representative, the transfer of the Aufgaben und Befugnisse des gemeinsamen rights of the Noteholders to the Joint

Vertreters festlegen, Rechte der Representative and a limitation of liability of Schuldverschreibungsgläubiger auf den the Joint Representative. Appointment of a gemeinsamen Vertreter übertragen und die Joint Representative may be passed by a Beschränkung der Haftung des gemeinsamen Simple Majority unless the Joint Vertreters bestimmen. Die Bestellung eines Representative is to be authorised to consent to gemeinsamen Vertreters bedarf einer Einfachen a material change in the substance of the Mehrheit, es sei denn der gemeinsame Vertreter Terms and Conditions. The appointment of a wird er ermächtigt, wesentlichen Änderungen der Joint Representative who shall be authorised to Emissionsbedingungen zuzustimmen. Die consent to a material change in the substance Bestellung eines gemeinsamen Vertreters, der of the Terms and Conditions requires a ermächtigt wird, wesentlichen Änderungen der Qualified Majority. Emissionsbedingungen zuzustimmen, bedarf einer Qualifizierten Mehrheit.

§ 14 § 14 ANWENDBARES RECHT, APPLICABLE LAW, PLACE OF ERFÜLLUNGSORT, GERICHTSSTAND PERFORMANCE, PLACE OF UND JURISDICTION AND ENFORCEMENT GERICHTLICHE GELTENDMACHUNG

(1) Anwendbares Recht. Form und Inhalt der (1) Applicable Law . The Notes, as to form and Schuldverschreibungen sowie die Rechte und content, and all rights and obligations of the Pflichten der Schuldverschreibungsgläubiger Noteholders and the Issuer, shall be governed und der Emittentin bestimmen sich in jeder by German law. Hinsicht nach deutschem Recht.

(2) Erfüllungsort. Erfüllungsort ist Frankfurt (2) Place of Performance. Place of am Main. performance shall be Frankfurt am Main.

(3) Gerichtsstand. Nicht ausschließlich (3) Submission to Jurisdiction. The District zuständig für sämtliche im Zusammenhang mit Court ( Landgericht ) in Frankfurt am Main den Schuldverschreibungen entstehenden shall have non-exclusive jurisdiction for any Klagen oder sonstige Verfahren action or other legal proceedings (Rechtsstreitigkeiten ) ist das Landgericht (Proceedings ) arising out of or in connection Frankfurt am Main. Die deutschen Gerichte with the Notes. The German courts shall have sind ausschließlich zuständig für die exclusive jurisdiction over lost or destroyed Kraftloserklärung abhanden gekommener oder Notes. vernichteter Schuldverschreibungen.

(4) Ernennung von (4) Appointment of Service Agent . For any Zustellungsbevollmächtigten . Für etwaige Proceedings before German courts, the Issuer Rechtsstreitigkeiten vor deutschen Gerichten has appointed the Guarantor as agent for hat die Emittentin die Garantin zu ihrer service of process in Germany. Zustellungsbevollmächtigten in Deutschland bestellt.

(5) Gerichtliche Geltendmachung. Jeder (5) Enforcement. Any Noteholder of Notes Schuldverschreibungsgläubiger ist berechtigt, may in any proceedings against the Issuer, or in jedem Rechtsstreit gegen die Emittentin to which such Noteholder and the Issuer are bzw. die Garantin oder in jedem Rechtsstreit, parties, in his own name enforce his rights in dem der Schuldverschreibungsgläubiger und arising under such Notes on the basis of (i) a die Emittentin bzw. die Garantin Partei sind, statement issued by the Custodian with whom seine Rechte aus diesen such Noteholder maintains a securities account Schuldverschreibungen im eigenen Namen auf in respect of Notes (a) stating the full name der folgenden Grundlage geltend zu machen: and address of the Noteholder, (b) specifying

(i) er bringt eine Bescheinigung der Depotbank the aggregate principal amount of Notes bei, bei der er für die Schuldverschreibungen credited to such securities account on the date ein Wertpapierdepot unterhält, welche (a) den of such statement and (c) confirming that the vollständigen Namen und die vollständige Custodian has given written notice to the Adresse des Schuldverschreibungsgläubigers Clearing System containing the information enthält, (b) den Gesamtnennbetrag der pursuant to (a) and (b) and (ii) a copy of the Schuldverschreibungen bezeichnet, die unter Note in global form certified as being a true dem Datum der Bestätigung auf dem copy by a duly authorised officer of the Wertpapierdepot verbucht sind und (c) Clearing System or a depository of the bestätigt, dass die Depotbank gegenüber dem Clearing System, without the need for Clearing System eine schriftliche Erklärung production in such proceedings of the actual abgegeben hat, die die vorstehend unter (a) und records or the global note representing the (b) bezeichneten Informationen enthält, und Notes or (iii) any other means of proof (ii) er legt eine Kopie der die betreffenden permitted in legal proceedings in the country Schuldverschreibungen verbriefenden of enforcement. For purposes of the foregoing, Globalurkunde vor, deren Übereinstimmung Custodian means any bank or other financial mit dem Original eine vertretungsberechtigte institution of recognised standing authorised to Person des Clearing System oder des engage in securities custody business with Verwahrers des Clearing System bestätigt hat, which the Noteholder maintains a securities ohne dass eine Vorlage der Originalbelege account in respect of the Notes and includes oder der die Schuldverschreibungen the Clearing System. verbriefenden Globalurkunde in einem solchen Verfahren erforderlich wäre oder (iii) auf jede andere Weise, die im Lande der Geltendmachung prozessual zulässig ist. Für die Zwecke des Vorstehenden bezeichnet Depotbank jede Bank oder ein sonstiges anerkanntes Finanzinstitut, das berechtigt ist, das Wertpapierverwahrungsgeschäft zu betreiben und bei der/dem der Schuldverschreibungsgläubiger ein Wertpapierdepot für die Schuldverschreibungen unterhält, einschließlich des Clearing System.

§ 15 § 15 TEILUNWIRKSAMKEIT SEVERABILITY

Sollte eine der Bestimmungen dieser Should any of the provisions of these Terms Schuldverschreibungen unwirksam oder and Conditions of the Notes be or become undurchführbar sein oder werden, so bleibt die invalid or unenforceable, the validity or the Wirksamkeit oder die Durchführbarkeit der enforceability of the remaining provisions shall übrigen Bestimmungen hiervon unberührt. not in any way be affected or impaired thereby. Anstelle der unwirksamen oder In this case the invalid or unenforceable undurchführbaren Bestimmungen soll, soweit provision shall be replaced by a provision rechtlich möglich, eine dem Sinn und Zweck which, to the extent legally possible, provides dieser Emissionsbedingungen entsprechende for an interpretation in keeping with the Reglung gelten. meaning and economic purposes of the Terms and Conditions of the Notes at the time of issue of the Notes.

§ 16 § 16 SPRACHE LANGUAGE

Diese Emissionsbedingungen sind in deutscher These Terms and Conditions are written in the

Sprache abgefasst. Eine Übersetzung in die German language and provided with an englische Sprache ist beigefügt. Der deutsche English language translation. The German text Text ist bindend und maßgeblich. Die shall be prevailing and binding. The English Übersetzung in die englische Sprache ist language translation is provided for unverbindlich. convenience only.

GUARANTEE

(non-binding English translation)

GARANTIE GUARANTEE

der of

HERAEUS HOLDING GMBH, HERAEUS HOLDING GMBH, FEDERAL BUNDESREPUBLIK DEUTSCHLAND REPUBLIC OF GERMANY

zu Gunsten for the benefit of

der Gläubiger der € % the holders of the € % notes due 2017 Schuldverschreibungen fällig 2017 (die (the Notes ), Schuldverschreibungen )

der of

Heraeus Finance GmbH Heraeus Finance GmbH

1) Die Heraeus Holding GmbH (die 1) Heraeus Holding GmbH (the Garantin ) übernimmt gegenüber jedem Guarantor ) unconditionally and irrevocably Gläubiger (jeweils ein guarantees to each holder (each a Noteholder ) Schuldverschreibungsgläubiger ) der of the Notes issued by Heraeus Finance GmbH Schuldverschreibungen der Heraeus Finance (the Issuer ) the due payment of the principal GmbH (die Emittentin ) die unbedingte und of, and interest on, the Notes and any other unwiderrufliche Garantie für die amounts which may be expressed to be payable ordnungsgemäße Zahlung von Kapital und under any Note, as and when the same shall Zinsen auf die Schuldverschreibungen sowie become due in accordance with the Conditions. von jeglichen sonstigen Beträgen, die in Übereinstimmung mit den Bedingungen auf irgendeine Schuldverschreibung zahlbar sind, und zwar zu den in den Bedingungen bestimmten Fälligkeiten.

2) Diese Garantie begründet eine 2) This Guarantee constitutes an unwiderrufliche, nicht nachrangige und irrevocable, unsecured (subject to paragraph (4) (vorbehaltlich der Bestimmungen in Ziffer 4 hereof) and unsubordinated obligation of the dieser Garantie) nicht besicherte Verpflichtung Guarantor and ranks at least pari passu with all der Garantin, die mit allen sonstigen nicht other unsecured and unsubordinated obligations nachrangigen und nicht besicherten of the Guarantor, unless provided otherwise by Verpflichtungen der Garantin wenigstens im mandatory law. gleichen Rang steht (soweit nicht zwingende gesetzliche Bestimmungen entgegenstehen).

3) Sämtliche auf diese Garantie zu 3) All amounts payable in respect of this zahlenden Beträge sind ohne Einbehalt oder Guarantee shall be made without withholding Abzug von oder aufgrund von gegenwärtigen or deduction for or on account of any present or oder zukünftigen Steuern oder sonstigen future taxes or duties of whatever nature Abgaben gleich welcher Art zu leisten, die von imposed or levied by or on behalf of the

oder in der Bundesrepublik Deutschland oder Federal Republic of Germany or any political für deren Rechnung oder von oder für subdivision or any authority thereof or therein Rechnung einer politischen Untergliederung having power to tax unless the Guarantor is oder Steuerbehörde der oder in der required by law to make such withholding or Bundesrepublik Deutschland auferlegt oder deduction . In such event, the Issuer will pay erhoben werden, es sei denn, die Garantin ist such additional amounts (the Additional zu einem solchen Einbehalt oder Abzug Amounts ) as shall be necessary in order that gesetzlich verpflichtet. In diesem Fall wird die the net amounts received by the Noteholders, Garantin diejenigen zusätzlichen Beträge (die after such withholding or deduction, shall equal zusätzlichen Beträge ) zahlen, die erforderlich the respective amounts which would otherwise sind, damit die den have been receivable in the absence of such Schuldverschreibungsgläubigern zufließenden withholding or deduction; except that no such Nettobeträge nach diesem Einbehalt oder Additional Amounts shall be payable on Abzug jeweils den Beträgen entsprechen, die account of any taxes or duties which: ohne einen solchen Einbehalt oder Abzug von den Schuldverschreibungsgläubigern empfangen worden wären; die Verpflichtung zur Zahlung solcher zusätzlicher Beträge besteht jedoch nicht im Hinblick auf Steuern und Abgaben, die:

(a) von einer als Depotbank oder (a) are payable by any person acting as Inkassobeauftragter des custodian bank or collecting agent on behalf of Schuldverschreibungsgläubigers handelnden a Noteholder, or otherwise in any manner Person zu entrichten sind oder sonst auf which does not constitute a deduction or andere Weise zu entrichten sind als dadurch, withholding by the Issuer from payments of dass die Emittentin von den von ihr zu principal or interest made by it, or leistenden Zahlungen von Kapital oder Zinsen einen Abzug oder Einbehalt vornimmt, oder

(b) wegen einer gegenwärtigen oder (b) are payable by reason of the Noteholder früheren persönlichen oder geschäftlichen having, or having had, some personal or Beziehung des business connection with the Federal Republic Schuldverschreibungsgläubigers zur of Germany and not merely by reason of the Bundesrepublik Deutschland zu zahlen sind, fact that payments in respect of the Notes are, und nicht allein deshalb, weil Zahlungen auf or for purposes of taxation are deemed to be, die Schuldverschreibungen aus Quellen in der derived from sources in, or are secured in, the Bundesrepublik Deutschland stammen (oder Federal Republic of Germany, or für Zwecke der Besteuerung so behandelt werden) oder dort besichert sind, oder

(c) aufgrund (i) einer Richtlinie oder (c) are to be deducted or withheld pursuant Verordnung der Europäischen Union to (i) any European Union Directive or bezüglich der Besteuerung von Zinserträgen Regulation concerning the taxation of interest oder (ii) einer zwischenstaatlichen income, or (ii) any international treaty or Vereinbarung über deren Besteuerung, an der understanding relating to such taxation to die Bundesrepublik Deutschland oder die which the Federal Republic of Germany or the Europäische Union beteiligt ist, oder (iii) einer European Union is a party, or (iii) any gesetzlichen Vorschrift, die der Umsetzung provision of law implementing, or complying dieser Richtlinie, Verordnung oder with, or introduced to conform with, such Vereinbarung dient, dieser entspricht oder zur Directive, Regulation, treaty or understanding, Anpassung an diese Richtlinie, Verordnung or oder Vereinbarung eingeführt wurde,

abzuziehen oder einzubehalten sind, oder

(d) von einer Zahlstelle abgezogen oder (d) are deducted or withheld by a paying einbehalten werden, wenn eine andere agent from a payment if the payment could Zahlstelle die Zahlung ohne einen solchen have been made by another paying agent Abzug oder Einbehalt hätte leisten können, without such deduction or withholding; or oder

(e) nicht zu entrichten wären, wenn die (e) would not be payable if the Notes had Schuldverschreibungen bei einem been kept in safe custody with, and the Kreditinstitut verwahrt und die Zahlungen von payments had been collected by, a banking diesem eingezogen worden wären, oder institution; or

(f) aufgrund einer Rechtsänderung oder (f) are payable by reason of a change in einer Änderung in der Rechtsanwendung law or practice that becomes effective more zahlbar sind, die später als dreißig Tage nach than thirty days after the relevant payment of Fälligkeit der betreffenden Zahlung von principal or interest becomes due, or after all Kapital oder Zinsen oder, wenn dies später amounts due have been duly provided and erfolgt, ordnungsgemäßer Bereitstellung aller notice thereof is published in accordance with fälligen Beträge und einer diesbezüglichen § 12, whichever occurs later. Mitteilung gemäß § 12 wirksam wird.

4) Während der Laufzeit der 4) The Guarantor undertakes as long as Schuldverschreibungen, jedoch nicht länger any Notes are outstanding, but only up to the als bis zu dem Zeitpunkt, an dem die Mittel für time the funds for the last payment of interest die letzte Zinszahlung und die volle and the full redemption of the Notes have been Rückzahlung der Schuldverschreibungen den placed at the disposal of the clearing systems, Clearing Systemen zur Verfügung gestellt worden sind, verpflichtet sich die Garantin,

(a) keine Verpfändung, Abtretung, (a) not to pledge, assign, transfer or create, Übertragung oder hypothekarische oder or suffer to exist, any mortgage or other sonstige Belastung von einzelnen oder allen encumbrance over its existing or future assets ihrer gegenwärtigen oder zukünftigen or proceeds as security for any current or future Vermögenswerte oder Einkünfte als Sicherheit Capital Markets Indebtedness made or für eine gegenwärtige oder zukünftige von der guaranteed by the Guarantor; and Garantin begebene oder garantierte Kapitalmarktverbindlichkeit vorzunehmen oder bestehen zu lassen, und

(b) vorbehaltlich zwingender gesetzlicher (b) subject to mandatory provisions of law Bestimmungen sicherzustellen, dass keine it will procure that no subsidiary in which the Tochtergesellschaft, bei der die Garantin über Guarantor holds the majority of voting rights die Mehrheit der Stimmrechte verfügt, für will pledge, assign, transfer or create, or suffer Kapitalmarktverbindlichkeiten eine to exist, any mortgage or other encumbrance Verpfändung, Abtretung, Übertragung oder over its existing or future assets or proceeds as hypothekarische oder sonstige Belastung von security for any current or future Capital einzelnen oder allen ihrer gegenwärtigen oder Markets Indebtedness made or guaranteed by it, zukünftigen Vermögenswerte oder Einkünfte als Sicherheit für eine gegenwärtige oder zukünftige von ihr begebene oder garantierte Kapitalmarktverbindlichkeit vornimmt oder bestehen lässt,

ohne sicherzustellen, dass die without at the same time ensuring that the Schuldverschreibungsgläubiger zur gleichen Noteholders share equally and rateably in such Zeit und im gleichen Rang an solchen security. Sicherheiten teilhaben.

Als Kapitalmarktverbindlichkeit gilt jede Capital Markets Indebtedness means any Zahlungsverpflichtung in der Form von oder payment obligation in the form of, or verbrieft durch Schuldverschreibungen (oder represented by, notes (or similar capital markets ähnliche Kapitalmarkt-Wertpapiere) mit einer securities) with an original maturity of more ursprünglichen Laufzeit von über einem Jahr, than one year which are capable of being traded die geeignet sind, an einer Wertpapierbörse on a stock exchange or over the counter oder einem Over-the-Counter- securities market, and Schuldschein loans Wertpapiermarkt gehandelt zu werden, und governed by German law. For purposes of this Schuldscheindarlehen nach deutschem Recht. . clause a Schuldschein loan is a loan evidenced Schuldscheindarlehen ist für Zwecke dieser by a written instrument entitled Schuldschein or Bestimmung ein Darlehen, über das eine als certificate of indebtedness or which is referred Schuldschein oder certificate of indebtedness to in the loan agreement as Schuldschein loan, bezeichnete Urkunde ausgestellt wird oder das Schuldschein or certificate of indebtedness. im Darlehensvertrag als Schuldscheindarlehen, Schuldschein loan oder certificate of indebtedness bezeichnet wird.

5) Die Verpflichtungen der Garantin aus 5) The obligations of the Guarantor under dieser Garantie (i) sind selbständig und this Guarantee (i) shall be separate and unabhängig von der Emittentin aus den independent from the obligations of the Issuer Schuldverschreibungen und (ii) bestehen ohne under the Notes and (ii) shall exist irrespective Rücksicht auf die Rechtmäßigkeit, Gültigkeit, of the legality, validity, binding effect or Verbindlichkeit und Durchsetzbarkeit der enforceability of the Notes. Schuldverschreibungen.

6) Die Verpflichtungen der Garantin aus 6) The obligations of the Guarantor under dieser Garantie erstrecken sich, ohne dass eine this Guarantee shall, without any further act or weitere Handlung durchgeführt werden oder thing being required to be done or to occur, ein weiterer Umstand entstehen muss, auf extend to the obligations of any new issuer solche Verpflichtungen jeglicher nicht mit der which is not the Guarantor arising in respect of Garantin identischen neuen Emittentin, die any Note by virtue of a substitution of the infolge einer Schuldnerersetzung gemäß den creditor pursuant to the applicable Conditions. anwendbaren Bestimmungen der Bedingungen in Bezug auf jedwede Schuldverschreibung entstehen.

7) Diese Garantie und alle hierin 7) This Guarantee and all undertakings enthaltenen Vereinbarungen sind ein Vertrag contained herein constitute a contract for the zu Gunsten der benefit of the Noteholders as third party Schuldverschreibungsgläubiger als begünstigte beneficiaries pursuant to section 328 (1) of the Dritte gemäß § 328 Abs. 1 BGB und German Civil Code ( Bürgerliches Gesetzbuch ) begründen das Recht eines jeden and give rise to the right of each such Schuldverschreibungsgläubigers, die Erfüllung Noteholder to require performance of the der hierin eingegangenen Verpflichtungen obligations undertaken herein directly from the unmittelbar von der Garantin zu fordern und Guarantor, and to enforce such obligations diese Verpflichtungen unmittelbar gegenüber directly against the Guarantor. der Garantin durchzusetzen.

8) Ein Schuldverschreibungsgläubiger 8) Any Noteholder has the right in case of kann im Falle der Nichterfüllung von non-performance of any payments on the Notes Zahlungen auf die Schuldverschreibungen zur to enforce the Guarantee by filing a suit directly Durchsetzung dieser Garantie unmittelbar against the Guarantor without the need to take gegen die Garantin Klage erheben, ohne dass prior proceedings against the Issuer. zunächst ein Verfahren gegen die Emittentin eingeleitet werden müsste.

9) Die Deutsche Bank 9) Deutsche Bank Aktiengesellschaft, Aktiengesellschaft, mit der die hierin with whom the arrangements contained herein enthaltenen Vereinbarungen getroffen werden, are made, acts in its capacity as Principal handelt als Hauptzahlstelle und nicht als Paying Agent and not as an agent or trustee or Beauftragte, Treuhänderin oder in einer in any other similar capacity for the ähnlichen Eigenschaft für die Noteholders. Schuldverschreibungsgläubiger.

10) Die hierin verwendeten und nicht 10) Terms used in this Guarantee and not anders definierten Begriffe haben die ihnen in otherwise defined herein shall have the den Bedingungen zugewiesene Bedeutung. meaning attributed to them in the Conditions.

11) Diese Garantie unterliegt dem Recht 11) This Guarantee shall be governed by der Bundesrepublik Deutschland. the laws of the Federal Republic of Germany.

12) Diese Garantie ist in deutscher 12) This Guarantee is written in the Sprache abgefasst und in die englische German language and attached hereto is a non- Sprache übersetzt. Die deutschsprachige binding English translation. The German Fassung ist verbindlich und allein maßgeblich. version is binding and shall alone prevail.

13) Das Original dieser Garantie wird der 13) The original of this Guarantee shall be Deutsche Bank Aktiengesellschaft delivered to, and kept by, Deutsche Bank ausgehändigt und von dieser verwahrt. Aktiengesellschaft.

14) Ausschließlicher Gerichtsstand für 14) Exclusive place of jurisdiction for all alle Rechtsstreitigkeiten gegen die Garantin legal proceedings arising out of or in aus oder im Zusammenhang mit dieser connection with this Guarantee against the Garantie ist Frankfurt am Main. Guarantor shall be Frankfurt am Main, Germany.

15) Für Änderungen der Bedingungen der 15) In relation to amendments of the terms Garantie durch Beschluss der of the Guarantee by resolution of the Schuldverschreibungsgläubiger mit Noteholders with the consent of the Guarantor, Zustimmung der Garantin gilt § 13 der § 13 of the Terms and Conditions applies Emissionsbedingungen entsprechend. mutatis mutandis.

16) Jeder Schuldverschreibungsgläubiger 16) On the basis of a copy of this kann in jedem Rechtsstreit gegen die Garantin Guarantee certified as being a true copy by a und in jedem Rechtsstreit, in dem er und die duly authorised officer of the Principal Paying Garantin Partei sind, seine aus dieser Garantie Agent, each Noteholder may protect and hervorgehenden Rechte auf der Grundlage enforce in his own name his rights arising einer von einer vertretungsberechtigten Person under this Guarantee in any legal proceedings der Hauptzahlstelle beglaubigten Kopie dieser against the Guarantor or to which such

Garantie ohne Vorlage des Originals im Noteholder and the Guarantor are parties, eigenen Namen wahrnehmen und durchsetzen. without the need for production of the original Guarantee in such proceedings.

______Ort, Datum Place, Date

______Heraeus Holding GmbH Heraeus Holding GmbH

Wir akzeptieren die Bestimmungen der We accept the terms of the above Guarantee vorstehenden Garantie ohne Obligo, without recourse, warranty or liability. Gewährleistung oder Rückgriff auf uns.

______Ort, Datum Place, Date

______Deutsche Bank Aktiengesellschaft Deutsche Bank Aktiengesellschaft

DESCRIPTION OF THE ISSUER

GENERAL INFORMATION The legal and commercial name of the Issuer is Heraeus Finance GmbH. The Issuer is a limited liability company ( Gesellschaft mit beschränkter Haftung ; GmbH) incorporated under German law. The Issuer has been founded on 17 March 2010 for an unlimited period of time. It is registered in the commercial register of the local court ( Amtsgericht ) of Hanau under the register number HRB 93178. The Issuer's address and registered office is at Heraeusstraße 12-14, 63450 Hanau, Germany. The Issuer's telephone number is +49 6181 35-0. The financial year of the Issuer is the calendar year.

CORPORATE PURPOSE The Issuer acts as vehicle for intra-group financing activities. The object of the Issuer, as stated in § 2 of its articles of association, is to carry out any type of financial transactions, in particular transactions which serve the purpose to finance the Heraeus Group. Such transactions include in particular issuing notes and raising loans, extending loans and providing any kind of support to companies of the Heraeus Group, coordinating and managing payments within the Heraeus Group and managing currency, interest rate and market price risks. Activities which would require a licence under the German Banking Act ( Kreditwesengesetz ) are not covered by the Issuer's objects.

AUDITORS The auditor of the Issuer is KPMG AG Wirtschaftsprüfergesellschaft, Marie-Curie-Strasse 30, 60439 Frankfurt am Main, Germany ( KPMG ). KPMG has audited the Issuer's interim financial accounts which have been prepared in accordance with German accounting standards set out in the German Commercial Code ( Handelsgesetzbuch ) for the period from 17 March 2010 to 31 March 2010. KPMG has issued for these accounts an unqualified auditor's report. KPMG is a member of the German chamber of public accountants ( Wirtschaftsprüferkammer ).

SHARE CAPITAL The issued share capital of the Issuer amounts to € 25,000. The share capital is fully paid up.

MAJOR SHAREHOLDERS The Issuer is fully owned by the Guarantor, i.e. Heraeus Holding GmbH.

ORGANISATIONAL STRUCTURE The Issuer does not have any subsidiaries.

MANAGEMENT The management body of the Issuer is its board of management (the Board of Management ). The members of the Board of Management, i.e. the directors (Geschäftsführer ), are Dr. Frank Heinricht and Jan Rinnert. The business address of the members of the Board of Management is the registered office of the Guarantor at Heraeusstraße 12-14, 63450 Hanau, Germany. These members of the Board of Management of the Issuer are also members of the Board of Management of the Guarantor.

The members of the Board of Management are appointed by the general meeting of shareholders. The general meeting determines the number of such members. The general meeting may at any time suspend and dismiss a board member. If there is just one member of the Board of Management such member is authorised to represent the Issuer. If there is more than one board member, two board members acting jointly, or one board member acting jointly with a person holding statutory authority (Prokurist ), represent the Issuer. The shareholders' meeting may authorise a board member to represent the Issuer individually, even if there is more than one board member.

There are no conflicts of interests between the private interests of the members of the Board of Management and their duties vis-à-vis the Issuer.

CORPORATE GOVERNANCE The corporate governance rules set out in the German Corporate Governance Code do not apply to limited liability companies ( Gesellschaft mit beschränkter Haftung - GmbH) such as the Issuer.

BUSINESS OVERVIEW The Issuer is a funding vehicle for the Heraeus Group. As such, it raises funds for example through the issue of notes and on-lends it to the Guarantor or other group companies. In the future, it may raise further funds and on-lend monies to companies within the Heraeus Group by way of intra-group loans.

LEGAL AND ARBITRATION PROCEEDINGS The Issuer is not and has not been since its foundation involved (whether as defendant or otherwise) in, nor does it have knowledge of any threat of any legal, governmental, arbitration, administrative or other proceedings the result of which may have, in the event of an adverse determination, a significant effect on its financial condition.

NO MATERIAL ADVERSE CHANGE There has been no material adverse change in the prospects and no significant change in the financial or trading position of the Issuer since the date of its last audited interim financial accounts as of 31 March 2010.

MATERIAL CONTRACTS The Issuer and the Guarantor intend to enter into a domination and a profit and loss transfer agreement (Beherrschungs- und Ergebnisabführungsvertrag ) after the approval of such agreement by the shareholders of the Guarantor in a shareholder's general meeting scheduled for June 2010.

SELECTED FINANCIAL INFORMATION The following selected historical financial information for the Issuer is based on the audited interim financial accounts of the Issuer for the interim period ended 31 March 2010 ( Heraeus Finance Interim Financial Accounts ). The Heraeus Finance Interim Financial Accounts were prepared in accordance with the provisions of the German Commercial Code ( Handelsgesetzbuch - HGB) applicable to small corporations. The Heraeus Finance Interim Financial Accounts were audited by KPMG AG Wirtschaftsprüfungsgesellschaft and issued with an unqualified auditor’s opinion.

Interim Period ended 31 March 2010 in EUR thousand (audited)

Subscribed capital 25 Net equity 24 Liabilities 1 Balance sheet total 25 Net loss for the interim period -1

HISTORICAL FINANCIAL INFORMATION The audited interim financial accounts of the Issuer for the interim period ended 31 March 2010 and the auditor's report thereon are incorporated by reference into this prospectus.

DESCRIPTION OF THE GUARANTOR

GENERAL INFORMATION The legal and commercial name of the Guarantor is Heraeus Holding GmbH. The Guarantor is a limited liability company ( Gesellschaft mit beschränkter Haftung ; GmbH) incorporated under German law. The Guarantor has been founded on 19 February 1986 for an unlimited period of time. It is registered in the commercial register of the local court ( Amtsgericht ) of Hanau under the register number HRB 3364. The Guarantor's address and registered office is at Heraeusstraße 12-14, 63450 Hanau, Germany. The Guarantor's telephone number is +49 6181 35-0. The financial year of the Guarantor is the calendar year.

So long as any Notes remain outstanding, the Guarantor intends, without being obliged to, to publish within 180 days of the conclusion of each financial year its annual report for such financial year, containing excerpts from the consolidated financial statements of the Guarantor which are audited by an independent auditor.

CORPORATE PURPOSE The Guarantor is the parent company of the Heraeus Group, a globally active precious metals and technology group with over 155 years of tradition. The Guarantor is responsible for the Heraeus Group’s overall management. The objects and purposes of the Guarantor, as stated in § 2 of its articles of association, are (i) the acquisition and the management of shareholdings of the Heraeus Group, (ii) asset management for companies of the Heraeus Group, (iii) the acquisition and the management of shares in other companies, (iv) the assumption of tasks in the area of research and development, production, distribution and management (including financing) within the Heraeus Group, and (v) the provision of production facilities for companies of the Heraeus Group. The Heraeus Group's main fields of business include precious metals, sensors, biomaterials and medical products, dental products, as well as quartz glass and specialty light sources.

HISTORY The origins of the Guarantor date back to 1851, when Wilhelm Carl Heraeus (1827-1904) took over his father’s pharmacy business in the town of Hanau in Germany. In 1856, he made his first scientific breakthrough when he succeeded in melting platinum by using an oxyhydrogen flame. This achievement had consequences for many diverse industries all over the world.

The initial discovery of Wilhelm Carl Heraeus was followed by more scientific discoveries which led to the growth of today’s international network of companies which form the Heraeus Group. The current product lines of the Managing Companies of the Guarantor can be traced back to Wilhelm Carl Heraeus' work and the work of his colleagues such as Dr. Richard Küch. Some of the most important discoveries made by Wilhelm Carl Heraeus and Dr. Richard Küch (1860-1915) are listed below:

• the discovery of a process to melt platinum through the use of a oxyhydrogen flame which enabled specialised applications for platinum such as filaments for incandescent bulbs, non corrosive electrical contacts in telephones and pins to anchor artificial teeth;

• the production of chemically pure hydrofluoric acid, rubidium and cesium;

• the discovery of a process for obtaining high-purity and bubble free quartz glass from rock crystal by melting it using an oxyhydrogen blowpipe which led to the production of laboratory equipment, plates, prisms and lenses for the optical industry and even special retroreflectors for the Apollo missions to the moon;

• the discovery of a process by which high quality synthetical quartz glass can be produced out of silicon tetrachloride for use in the communications industry and glass fibre technology;

• the invention of special lamps and UV and infrared emitters, following the discovery that mercury vapour emits an intensive greenish light when it is induced to make electrical discharges in a quartz glass tube;

• the production of thermoelements and thermometers using wires made of platinum and rhodium; and

• the discovery of a process to melt materials under vacuum to produce non-precious metal alloys for a broad range of applications in electrical engineering.

AUDITORS The auditor of the Guarantor's consolidated financial statements for the 2008 and 2009 financial years is KPMG AG Wirtschaftsprüfungsgesellschaft, Marie-Curie-Str. 30, 60439 Frankfurt am Main, (KPMG ). The consolidated financial statements of the Guarantor according to IFRS for the 2008 and 2009 financial years were audited by KPMG and each provided with an unqualified auditor's opinion. KPMG is a member of the German Chamber of Auditors ( Wirtschaftsprüferkammer ).

SHARE CAPITAL The issued share capital of the Guarantor amounts to € 210,000,000. The share capital is fully paid up. The shares are divided in voting shares and non-voting shares. The shares are either directly or indirectly owned by persons who are descendants or the spouse of descendants of one of the founders of the Heraeus Group or certain former chairmen or other members of the Board of Management of the Guarantor. The shares may only be transferred to persons related to the founders or certain former chairmen or other members of the Board of Management which qualify as "eligible to succeed" (nachfolgeberechtigt ) pursuant to § 16(3) of the articles of association of the Guarantor dated 6 June 2009. Dispositions over the shares may also only be made to such persons who are eligible to succeed. Any intended transfer or disposition requires approval of a shareholder committee or a qualified majority of the shareholders.

MAJOR SHAREHOLDERS The Guarantor is owned by Einhorn Verwaltungsgesellschaft mbH and approximately 185 individual shareholders. Einhorn Verwaltungsgesellschaft mbH holds 91.42% of the shares (which are non- voting shares). The individual shareholders hold the remaining 8.58% of the shares (which are voting shares).

ORGANISATIONAL STRUCTURE The Guarantor is the ultimate parent company of the Heraeus Group. The Heraeus Group is currently organised in six business segments. Each business segment is organised by a separate legal entity (each a Managing Company ). Some but not all of the Managing Companies are linked to the Guarantor by a domination and profit and loss transfer agreement ( Beherrschungs- und Ergebnisabführungsvertrag ). Most of the foreign affiliates are held by an intermediate holding company. The Guarantor also fully owns the Issuer as well as three real estate property holding companies.

The Managing Companies, together with the respective operational dedicated affiliates, represent the six main business segments of the Heraeus Group as follows:

• W. C. Heraeus GmbH (W. C. Heraeus ) is responsible for the business segment precious metals

• Heraeus Electro-Nite International N.V. (Heraeus Electro-Nite ) is responsible for the business segment sensors.

• Heraeus Kulzer GmbH (Heraeus Dental ) is responsible for the business segment dental products.

• Heraeus Medical GmbH (Heraeus Medical ) is responsible for the business segment biomaterials and medical products.

• Heraeus Quarzglas GmbH & Co KG (Heraeus Quarzglas ) is responsible for the business segment quartz glass.

• Heraeus Noblelight GmbH (Heraeus Noblelight ) is responsible for the business segment specialty light sources.

The Heraeus Group consists of the following companies:

1. Subsidiaries included in the consolidated financial statements

Percentage City Country in % Heraeus Beteiligungsverwaltungsgesellschaft mbH Hanau Germany 100 Heraeus Electro-Nite GmbH & Co. KG Hanau Germany 100 Heraeus Electro-Nite Verwaltungsgesellschaft mbH Hanau Germany 100 Heraeus Energieversorgungsgesellschaft mbH Hanau Germany 100 Heraeus Holding GmbH Hanau Germany 100 Heraeus infosystems GmbH Hanau Germany 100 Heraeus Instruments Administration and Management GmbH Hanau Germany 100 Heraeus Kulzer GmbH Hanau Germany 100 Heraeus Kulzer International GmbH Hanau Germany 100 Heraeus Kulzer Liegenschaften GmbH & Co. KG Hanau Germany 100 Heraeus Liegenschafts- und Facility III Management GmbH & Co. KG Hanau Germany 100 Heraeus Liegenschafts- und Facility Management GmbH & Co. KG Hanau Germany 100 Heraeus Liegenschafts- und Facility Management Verwaltungsgesellschaft mbH Hanau Germany 100 Heraeus Medical GmbH Wehrheim Germany 100 Heraeus Metallhandelsgesellschaft mbH Hanau Germany 100 Heraeus Noblelight GmbH Hanau Germany 100 Heraeus Noblelight Liegenschaften GmbH & Co. KG Hanau Germany 100 Heraeus Quarzglas GmbH & Co. KG Hanau Germany 100 Heraeus Quarzglas International GmbH Hanau Germany 100 Heraeus Quarzglas Verwaltungsgesellschaft mbH Hanau Germany 100 Heraeus Sensor Technology GmbH Hanau Germany 100 Scientific Glass GmbH Usingen Germany 100 W. C. Heraeus GmbH Hanau Germany 100 W. C. Heraeus International GmbH Hanau Germany 100 Heraeus Noblelight France S.A.R.L. Courtaboeuf France 100 Beijing Heraeus Biomaterials Co., Ltd. Beijing China 100 The Cavex Holland B.V. Haarlem Netherlands 100 Heraeus Amba Ltd. Banbury Great Britain 100 Wijk bij The Heraeus B.V. Duurstede Netherlands 100 Heraeus Catalysts (Danyang) Co. Ltd. Jiangsu China 70 Heraeus Ceramic Colours Indonesia PT Jakarta Indonesia 100 Port Heraeus Chemicals SA (Pty.) Ltd. Elizabeth South Africa 100 Heraeus Contact Materials Switzerland AG Thalwil Switzerland 100 Czech Heraeus CZ s.r.o. Prague Republic 100

The Heraeus Drijfhout B.V. Amsterdam Netherlands 100 The Heraeus Electronic Materials Philippines, Inc. Makati City Philippines 100 Heraeus Electro-Nite (Aust.) Pty. Ltd. Unanderra Australia 100 Heraeus Electro-Nite (Pty.) Ltd. Boksburg South Africa 100 Heraeus Electro-Nite (U.K.) Ltd. Chesterfield Great Britain 100 Heraeus Electro-Nite AB Lidingö Sweden 100 Heraeus Electro-Nite A.S. Ankara Turkey 100 Stoney Heraeus Electro-Nite Canada Ltd. Creek/ON Canada 100 Heraeus Electro-Nite Co., LLC Dover/DE USA 100 Llanera- Heraeus Electro-Nite Espana, S.L. Asturias Spain 100 Heraeus Electro-Nite France S.A.R.L. Illange France 100 Heraeus Electro-Nite Instrumentos Ltda. Diadema/SP Brazil 100 Heraeus Electro-Nite International N.V. Houthalen Belgium 100 Heraeus Electro-Nite Italy S.R.L Milan Italy 100 Ichikawa-shi, Heraeus Electro-Nite Japan Ltd. Chiba Japan 100 Heraeus Electro-Nite L.L.C. Moskow Russia 100 Heraeus Electro-Nite Ltd. Basel Switzerland 100 Ramos Heraeus Electro-Nite Mexicana S.A. de C.V. Arizpe/COA Mexico 100 Heraeus Electro-Nite Polska Sp. z o.o. Sosnowiec Poland 100 Heraeus Electro-Nite Shanghai Ltd. Shanghai China 100 Heraeus Electro-Nite Shenyang Co. Ltd. Shenyang China 100 Heraeus Electro-Nite Taicang Co. Ltd. Taicang China 100 Heraeus Electro-Nite Taiwan Ltd. Kaohsiung Taiwan 100 Heraeus Electro-Nite Ukraina LLC Zaporozhye Ukraine 100 Heraeus Hellas Monoprosopi EPE Athens Greece 100 New Heraeus Inc. York/NY USA 100 Heraeus Jinsheng Shenzhen Materials Technologies Ltd. Shenzhen China 76.0 Heraeus Juncheng Electric (Shenyang) Co., Ltd. Shenyang China 51.0 Heraeus K.K. Tokyo Japan 100 Heraeus Kulzer Australia Pty. Ltd. Chatswood Australia 100 Heraeus Kulzer Austria GmbH Vienna Austria 100 The Heraeus Kulzer Benelux B.V. Nijmegen Netherlands 100 Heraeus Kulzer Dental Ltd. Shanghai China 100 Heraeus Kulzer Hungary Kft. Budapest Hungary 100 Heraeus Kulzer, LLC Dover/DE USA 100 Heraeus Kulzer Japan Co., Ltd. Tokyo Japan 100 Heraeus Kulzer Ltd. Berkshire Great Britain 100 Heraeus Kulzer Mexico S.A. de C.V. Mexico-City Mexico 100 Heraeus Kulzer Nordic AB Sollentuna Sweden 100 Heraeus Kulzer Poland Sp. z o.o. Warsaw Poland 100 Vila do Heraeus Kulzer Portugal Lda. Conde Portugal 100 Heraeus Kulzer S.r.l. Milan Italy 100 Heraeus Kulzer Schweiz AG Dübendorf Switzerland 100 Heraeus Kulzer South America Ltda. Sao Paulo Brazil 100 Heraeus Ltd. Hongkong China 100 Stoke-on- Heraeus Materials Ltd. Trent Great Britain 100 Yverdon-les- Heraeus Materials S.A. Bains Switzerland 100 Heraeus Materials Singapore Pte. Ltd. Singapore Singapore 100 Wilmington/ Heraeus Materials Technology LLC DE USA 100 Heraeus Materials Technology Shanghai Ltd. Shanghai China 100 Heraeus Materials Technology Taiwan Ltd. Taipei Taiwan 100

Heraeus Medical Components, Inc. St. Paul/MN USA 100 Heraeus Medical Components Caribe, Inc. Dorado Puerto Rico 100 Heraeus Metal Processing, LLC Dover/DE USA 100 Heraeus Metal Processing, Ltd. Shannon Ireland 100 Heraeus Noblelight Analytics Ltd. Cambridge Great Britain 100 Heraeus Noblelight de Puerto Rico, Inc. Cayey Puerto Rico 100 Wilmington/ Heraeus Noblelight LLC DE USA 100 Heraeus Noblelight Ltd. Cambridge Great Britain 100 Heraeus Noblelight (Shenyang) Ltd. Shanghai China 100 Republic Heraeus Oriental HiTec Co., Ltd. Inchon Korea 100 Wilmington/ Heraeus Precious Metals Management LLC DE USA 100 Heraeus PSP France SAS Gresy sur Aix France 100 Wilmington/ Heraeus Quartz America LLC DE USA 100 Heraeus Quartz UK Ltd. Send Great Britain 100 Heraeus Recycling Technology (Taicang) Co., Ltd. Taicang City China 100 Port Heraeus Refinery SA (Pty.) Ltd. Elizabeth South Africa 100 Heraeus S.A. Madrid Spain 100 Heraeus S.A. Pty. Ltd. Boksburg South Africa 100 Villebon sur Heraeus S.A.S. Yvette France 100 Heraeus S.p.A. Milan Italy 100 Heraeus Schauer GmbH Vienna Austria 100 Heraeus Sensor Technology Ltda. Diadema/SP Brazil 100 Heraeus Shanghai Management Consulting Co., Ltd. Shanghai China 100 Heraeus ShinEtsu Quartz China Inc. Shenyang China 66.7 Heraeus Tenevo LLC Dover/DE USA 100 Heraeus Tokmak Kiymetli Madenler Sanayi A.S. Izmir Turkey 95.0 Heraeus Vectra do Brasil Ltda. Sao Paulo Brazil 60.0 Heraeus Zhaoyuan Changshu Electronic Materials Co. Ltd. Changshu China 80.0 Heraeus Zhaoyuan Precious Metal Materials Co. Ltd. Zhaoyuan China 60.0 Shanghai Heraeus Kulzer Dental Trading Ltd. Shanghai China 100 Teplopribor Express Analysis OOO Chelyabinsk Russia 100 Hwaseong-si, Republic Woojin Electro-Nite Inc. Gyeonggi-do Korea 66

SUPERVISORY BOARD AND MANAGEMENT

Supervisory Board The Guarantor has a supervisory board (the Supervisory Board ) which, at present, consists of the following members:

• Dr. Jürgen Heraeus (Chairman), Businessman;

• Hans Ostermeier* (Vice Chairman), Chairman of the Heraeus Worker's Council;

• Dieter Ammer, Economist;

• Clemens Blaumeiser*, Managing Director;

• Dr. Hans-Tjabert Conring, Lawyer;

• Franz Haniel, Engineer;

• Prof. Dipl.-Ing. Jörg Menno Harms, Engineer;

• Jutta Jakob*, Member of the Heraeus Worker’s Council;

• Michael Pilz*, Worker’s Union Representative;

• Hans Schweinsberg*, Worker’s Union Representative;

• Prof. Dr. Claus Weyrich, Physicist; and

• Andreas Wolf*, Member of the Heraeus Worker’s Council. *employee representative

Board of Management The management body of the Guarantor is its board of management (the Board of Management ). The members of the Board of Management, i.e. the directors ( Geschäftsführer ) are Dr. Frank Heinricht (Chairman) and Jan Rinnert. The Guarantor has at least two members of the Board of Management. Such members are appointed by the general meeting of shareholders. The Guarantor is represented by two board members acting jointly, or one board member acting jointly with a person holding statutory authority ( Prokurist ). The members of the Board of Management of the Guarantor accept membership on the supervisory boards and advisory boards of other corporations (group internal memberships are not mentioned):

Dr. Frank Heinricht is member of:

• the advisory board of Adolph Würth GmbH & Co. KG; and

• the supervisory board of Sennheiser electronic GmbH & Co. KG.

Jan Rinnert is member of:

• the advisory board of Wilhelm Böllhoff GmbH & Co. KG (as from 30 April 2010); and

• the supervisory board of Sparkasse Hanau.

Business addresses The business address of the members of the Supervisory Board and the members of the Board of Management is the registered office of the Guarantor at Heraeusstraße 12-14, 63450 Hanau, Germany.

Conflict of interests There are no conflict of interests between the private interests of the members of the Supervisory Board and the members of the Board of Management, respectively, and their duties vis-à-vis the Guarantor.

AUDIT COMMITTEE The Supervisory Board has established voluntarily an Audit Committee that deals with the compliance management system, the risk management system, the status of the internal corporate auditing department, and make a recommendation to the appointment of the independent auditor of the Heraeus Group. At the meeting of 29 March 2010, the Audit Committee reviewed the result of the auditor’s report on the consolidated financial statements as of 31 December 2009 with no objections and recommended the Supervisory Board to approve the financial statements. The Audit Committee consist of the following members:

• Franz Haniel, Chairman; • Dr. Jürgen Heraeus, Vice Chairman; and • Hans Ostermeier.

BUSINESS OVERVIEW

The Guarantor The Guarantor acts as the holding company for the Heraeus Group. It is, in addition to the functions of the other departments of the Guarantor (e.g. controlling, tax, group communication, accounting, legal, corporate development and internal coporate auditing) responsible for the financial management of the Heraeus Group which includes in particular the following activities:

• Borrowing for the Heraeus Group : The Guarantor has primary responsibility for raising funds in the debt markets by itself or via a finance subsidiary for the entire Heraeus Group. In general, the Guarantor lends funds via intragroup financing to the business segments. Some Heraeus subsidiary companies obtain financing from local banks, e.g. in countries with conflicting laws or regulations for intragroup financing.

• Liquidity management for the whole Heraeus Group: The Guarantor generally manages the liquidity position for the entire Heraeus Group including investments of cash and cash equivalents. It consciously limits the liquidity of its operating entities and other subsidiaries to focus them on their business activities. Liquidity is strengthened by means of cash concentration or cash pooling procedures. The Guarantor keeps liquidity reserves which are available on a short-term basis. These reserves include several committed bilateral credit facilities.

• Currency management for the whole Heraeus Group : The Guarantor has established a foreign exchange risk management system where each subsidiary is responsible for reporting and hedging its foreign currency transaction exposure through intercompany transactions with the Guarantor. Operating subsidiaries are prohibited from borrowing or investing in foreign currencies on a speculative basis. All Managing Companies are obliged to buy and sell their currency needs through the Guarantor except for countries with conflicting laws or regulations. Intercompany financing or investments of operating entities are preferably done in their functional currency or on a hedged basis. In addition, the Corporate Finance department of the Guarantor provides a framework of the organisational structure necessary for foreign currency exchange management at the Heraeus Group level.

• Risk management for the whole Heraeus Group: The Guarantor has a risk management policy in place with weekly and monthly reporting structures to the Executive Committee about financial risk positions related to treasury activities, including marked-to-market evaluations, risk limit monitoring, stress test analysis and interest rate management. Currently, the Guarantor has no intention to change the structure and responsibilities described above.

The Heraeus Group On an operational level the Heraeus Group can be divided, as set out under "Organisational Structure " on page 9, in the following six main business segments: (i) precious metal; (ii) sensors; (iii) dental products; (iv) biomaterials and medical products; (v) quartz glass; and (vi) specialty light sources.

Precious Metals Business Segment – W. C. Heraeus

The precious metals business segment processes the precious metals gold and silver, platinum group metals, and special metals, primarily to produce industrial products. A global network of companies in Europe, North America, Asia, and Africa includes production facilities for all phases of precious metals production and refining. W. C. Heraeus provides services and products throughout the precious metals cycle. The principal purchasers of W. C. Heraeus products operate in the environmental, mobility, communications, and energy sectors, as well as the health care industry. The precious metals business segment spent a total of €21.5 million for research and development (previous year: €23.9 million) during the reporting year. The majority of funds went to the development of new products, such as rubicins for anticancer therapy, powder technology for hard-disk targets, and microspheres for the electronics industry.

Heraeus Metallhandelsgesellschaft, part of the precious metals business segment, is a global precious metals trading company headquartered in Hanau (Germany), with additional trading units in New York (USA), Shanghai (China), and Hong Kong. Precious metals management has a presence in every time zone to fulfill its task of securing the supply of precious metals for the Heraeus Group’s product lines. In addition, precious metals trading partners include private investors and important industrial customers.

Sensors Business Segment – Heraeus Electro-Nite

The sensors business segment focuses on sensor and measurement systems for the steel, aluminum, and foundry industries. The business segment produces and markets sensors from global manufacturing and sales facilities on every continent. The business segment develops product solutions that contribute to efficiency and quality in production processes, as well as improving working conditions and protecting the environment. The sensors business segment is continually expanding and improving its product line, adding to it in the reporting period with additional process control sensors. Despite the current economic crisis, expenditures for research and development were increased to €11.7 million from €10.5 million the previous year.

Dental Products Business Segment – Heraeus Dental

The dental products business segment, a single-source provider of prosthetics and systems for the conservation and restoration of natural teeth, has an extensive range of products for dental laboratories and dentists.

Heraeus Dental increased its research and development expenses by 6.7% over last year, to € 9.4 million. Development activities focused on the cara brand CAD/CAM system and on further development of casting and filling materials for the dental industry.

Biomaterials and Medical Products Business Segment – Heraeus Medical

The biomaterials and medical products business segment concentrates on medical products for orthopedic surgery as well as traumatology and biosurgery. It develops, produces, and globally markets biomaterials used to anchor joint prostheses to bone and to stabilize spinal fractures. In the field of biosurgery, the business segment offers innovative antibiotic coatings for medical implants, thereby helping to prevent infections. In 2009, Heraeus Medical celebrated the 50-year anniversary of the bone cement PALACOS® and expanded its portfolio by introducing four new products. PALASEPT® became the first pharmaceutical preparation from Heraeus Medical to be approved in Germany for the treatment of bone and soft tissue infections. At the European level, the COPAL® product line was introduced with two products for revision arthroplasty. In addition, the new PALAMIX® system was launched, enabling the users to produce homogeneous and reproducible bone cement mixtures.

As of 1 July 2009, Heraeus Medical GmbH, the Managing Company responsible for this business segment, became an independent managing company within the Heraeus Group. The separation of Heraeus Medical GmbH from its parent company, Heraeus Kulzer GmbH, completes the partitioning of Heraeus Kulzer into Heraeus Dental and Heraeus Medical initiated in 2008. This focuses business activities even more clearly on markets and customers.

Quartz Glass Business Segment – Heraeus Quarzglas

The quartz glass business segment is a materials specialist for the manufacture and processing of high-purity quartz glass. It excels in all key processes for producing different quartz glass types for the semiconductor and telecommunications industries as well as applications for the optical, chemical, and lamp industries. From base materials to complex system components, custom-tailored products and solutions can be developed and produced from natural and synthetic quartz glass. The business segment is a manufacturer of synthetic quartz glass for use in the microlithography and telecommunications industries. In research and development projects underwritten by public funding to further develop a fiber laser material, the business segment developed a laser with an output power of more than 600 watts. The business segment invested a total of €12.9 million in research and development (€14.2 million the previous year) and intensified the development of quartz glass products for fields such as photovoltaics and solar thermal technology. In addition, research and development activities focused on optimising production processes, especially in the area of natural and synthetic base materials. Specialty Light Sources Business Segment – Heraeus Noblelight Specialty Light Sources business segment focuses on special lamps with wavelengths from ultraviolet to infrared for industrial, scientific, and medical applications. With locations in Germany, the United Kingdom, China, and the USA, the segment manufactures lamps for analytical measurement technology and the printing industry, infrared emitters for industrial heating processes, arc and flash lamps, and products for water disinfection and air treatment, as well as sun simulation and photochemistry with a high level of vertical integration. One example of the successful combination of UV and IR lamps is the recently developed instant-on UV module. The innovative QRC® quartz reflector, now patented worldwide, optimises the power density of IR emitters. In the area of deuterium lamps, the new patent-pending Enhanced Lifetime Performance (ELP) technology significantly increases the residual intensity of D2 lamps at end of life. In the field of semiconductor technology, a customer-specific collaboration has yielded the prototype of a completely LED-based UV curing system – a first step into a new applications market. Group’s Activities by Region

With 120 locations and 25 dedicated development centers, the Heraeus Group is active in key markets all over the world. Through its Managing Companies, the operations of the Haereus group are conducted on a worldwide basis. In 2009, 85% of the total product revenues were generated outside Germany.

The following table shows the Heraeus Group's global presence by 31 December 2009:

No. of Heraeus Region: locations: Countries:

The Americas 20 Brazil, Canada, Mexico, Puerto Rico, USA Austria, Belgium, Czech Republic, France, Germany, Greece, Hungary, Ireland, Italy, Poland, Portugal, Russia, Europe 61 Spain, Sweden, Switzerland, The Netherlands, Turkey, Ukraine, United Kingdom China, Hong Kong, India, Indonesia, Japan, Korea, Asia 32 Singapore, Taiwan, The Philippines Australia 3 Australia Africa 4 South Africa

TREND INFORMATION AND OUTLOOK Following the global economy's down turn at the end of 2008, Heraeus Group saw an upswing in key figures starting in the second half of 2009. Nevertheless, developments in the global economic environment are currently too unstable to allow a reliable forecast of developments for 2010 and especially for 2011. The expected outlook for the business segments can be summarised as follows:

Precious metals Business Segment – W. C. Heraeus

For 2010, despite broad-based growth in comparison to 2009, the Heraeus Group expects that demand for precious metals products will remain subdued in certain industries, while other sectors such as medical technology and photovoltaics will experience growth. If the current economic recovery stabilises, the Heraeus Group expects to see profits rise above the 2009 level in the next two years. Trading in precious metals was characterized by uncertainty among market participants and therefore high volatility in the precious metals markets, as well as by a drop in industrial demand. For 2010, the Heraeus Group anticipates that industrial demand will rise over the year as a whole, while precious metals markets will remain volatile. Based on these premises, the Heraeus Group expects that profits for 2010 and 2011 will be slightly higher than the level reached last year.

Sensors Business Segment – Heraeus Electro-Nite

After the economic crisis reached a low point in the middle of last year, an upturn in demand for capital goods, increasing infrastructure needs, and people’s steadily growing mobility requirements have increased demand for steel products for a variety of purposes, especially in China. For 2010, the Heraeus Group anticipates that the positive trend in the steel market observed in the second half of 2009 will continue. Even if these positive expectations bear out, revenues and profits in the two forecast years will fall short of those attained in 2007 and 2008. With a production share of almost 50% of the total market, China’s volatile steel market plays a key role for the global market’s future development, which makes forecasting more difficult.

Dental Products Business Segment – Heraeus Dental

The Heraeus Group expects the market for dental products for dentists and dental technicians to grow due to demographic development, increasing demand for function and aesthetics, and innovations in both treatment methods and products, although the economic crisis caused a downturn in regions

where patients’ co-payments are relatively high. The profits in 2010 and 2011 could exceed those posted last year.

Biomaterials and Medical Products Business Segment - Heraeus Medical

The Heraeus Group expects the global market for bone cements and biomaterials for orthopedics and traumatology to grow due to demographic shifts, medical advances, and product innovations. Heraeus Medical anticipates strengthening its market positions with existing products in countries where its market share is still relatively small, in particular in Latin America and Asia. In regions with good market penetration, such as Europe and Australia, it will try to open up new market segments. These include innovative products for revision endoprosthesis, bone replacement materials, and anti- infective therapy in bone surgery. If these positive expectations are met, profits could also rise further in each of the next two years.

Quartz Glass Business Segment – Heraeus Quarzglas

The slump in investments in semiconductor equipment and in the production of storage chips will continue to weigh on the quartz glass business in 2010. Especially considering developments in the final months of 2009, the growth curve may resume in the medium term. In addition to a steady demand for telecommunications products, the second half of 2009 brought a slight recovery in the semiconductor industry’s demand for quartz glass products. Provided that the current positive trend stabilises, the quartz glass business may build on muted results in 2010 to make a decidedly positive contribution to profits in 2011.

Specialty Light Sources Business Segment – Heraeus Noblelight

Ultraviolet light and infrared radiation are used in many industrial process chains, for example in the production of solar cells and in the automotive industry. The current downturns in these branches of industry will also weigh on the financial year 2010, as market conditions and the environment remain difficult. Despite the challenging environment and Heraeus Group's heavy dependence on key markets such as machine construction, the Heraeus Group anticipates a mild recovery in all divisions. For 2010 and 2011, the business segment has set a goal of moderate sales growth in the high single- digit range with a simultaneous improvement in return on sales.

LEGAL AND ARBITRATION PROCEEDINGS Companies of the Heraeus Group are and have been party to litigation in the ordinary course of business. Such litigation focuses primarily on product liability and infringements of patens. Neither the Guarantor nor any of its subsidiaries is, or has been during the last 12 month, involved (whether as defendant or otherwise) in any legal, governmental, arbitration, administrative or other proceedings the result of which had or may have in the future, in the event of an adverse determination, a significant negative effect on the financial condition of the Heraeus Group. Also, the Guarantor is not aware of any threat of any such proceeding which may have a significant negative effect on the financial condition of the Heraeus Group.

NO MATERIAL ADVERSE CHANGE There has been no material adverse change in the prospects and no significant change in the financial or trading position of the Guarantor since the date of its last published audited financial statements as of 31 December 2009.

SELECTED FINANCIAL INFORMATION The following table sets out selected financial information relating to the Guarantor. The information has been extracted from the audited consolidated financial statements and the group management

report of the Guarantor for the financial year ending 31 December 2009. These consolidated financial statements and the group management report have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU.

Selected Key Financial Indicators for the Group

2009 2008

in € million in € million Change in %

For an excerpt of the consolidated financial statements of Heraeus Holding GmbH as of 31 December 2009 see Annex I.

Group's Activities by Business Segment The following table shows the Heraeus Group’s revenue by business segment as of 31 December 2008 and 31 December 2009:

2009 2008 in € million in € million

W. C. Heraeus – Product revenue 1,666.8 1,881.3 W. C. Heraeus – Precious metals trading 13,633.9 12,994.0 revenue Heraeus Electro-Nite 294.5 377.3 Heraeus Dental 288.8* 290.4* Heraeus Medical 59.9 56.2 Heraeus Quarzglas 199.0 213.0 Heraeus Noblelight 71.6 92.5

*) Excluding Heraeus Medical starting in 2008

Product Revenue by Region The following table shows the product revenue of the Heraeus Group by region for the financial year ending 31 December 2008 and 31 December 2009, respectively:

2009 2008 Product Revenue by Region in % in %

Germany 15 18 Europe excluding Germany 18 23 The Americas 17 18 Asia 47 39 Africa/Australia 3 2

HISTORICAL FINANCIAL INFORMATION The audited consolidated financial statements of the Heraeus Group for the financial years ending on 31 December 2008 and 2009 and the auditor's report thereon are incorporated by reference into this Prospectus.

TAXATION

GERMANY The following is a general discussion of certain German tax consequences of the acquisition, holding and disposal of the Notes. It does not purport to be a comprehensive description of all tax considerations that may be relevant to a decision to purchase the Notes, and, in particular, does not consider any specific facts or circumstances that may apply to a particular purchaser. This summary is based on the laws of Germany currently in force and as applied on the date of this Base Prospectus, which are subject to change, possibly with retroactive or retrospective effect.

Prospective purchasers of Notes are advised to consult their own tax advisors as to the tax consequences of the purchase, ownership and disposition of the Notes, including the effect of any state, local or church taxes, under the tax laws of Germany and each country of which they are residents or whose tax laws apply to them for other reasons.

Tax Residents The section “Tax Residents” refers to persons who are tax residents of Germany (i.e. persons whose residence, habitual abode, statutory seat, or place of effective management and control is located in Germany).

Withholding tax on ongoing payments and capital gains

Ongoing payments received by an individual Noteholder will be subject to German withholding tax (Abgeltungsteuer ) if the Notes are kept in a custodial account with a German branch of a German or non-German bank or financial services institution, a German securities trading company or a German securities trading bank (each, a Disbursing Agent , auszahlende Stelle ). The tax rate is 25% (plus solidarity surcharge at a rate of 5.5% thereon, the total withholding being 26.375%). If the individual Noteholder is subject to church tax, upon application a church tax surcharge will also be withheld.

The same treatment applies to capital gains (i.e. the difference between the proceeds from the disposal after deduction of expenses directly related to the disposal and the cost of acquisition) derived by an individual Noteholder provided the Notes have been held in a custodial account with the same Disbursing Agent since the time of their acquisition.

To the extent the Notes have not been kept in a custodial account with the same Disbursing Agent since the time of acquisition, upon the disposal, redemption, repayment or assignment withholding applies at a rate of 26.375% (including solidarity surcharge) to 30% of the disposal proceeds,(plus interest accrued on the Notes (Accrued Interest , Stückzinsen ); if any), unless the current Disbursing Agent has been notified of the actual acquisition costs of the Notes by the previous Disbursing Agent or by a statement of a bank or financial services institution within the European Economic Area or certain other countries in accordance with art. 17 para. 2 of the EC Council Directive 2003/48/EC (e.g. Switzerland or Andorra).

In computing any German tax to be withheld, the Disbursing Agent may - subject to certain requirements and restrictions - deduct from the basis of the withholding tax negative investment income realised by the individual Noteholder via the Disbursing Agent (e.g. losses from sale of other securities with the exception of shares). The Disbursing Agent may also deduct Accrued Interest on the Notes or other securities paid separately upon the acquisition of the respective security via the Disbursing Agent. In addition, subject to certain requirements and restrictions the Disbursing Agent may credit foreign withholding taxes levied on investment income ( Einkünfte aus Kapitalvermögen ) in a given year regarding securities held in the custodial account with the Disbursing Agent to the extent such foreign withholding taxes cannot be reclaimed in the respective foreign country.

In addition, an annual allowance ( Sparer-Pauschbetrag ) of euro 801 (euro 1,602 for married couples filing jointly) applies to all investment income received in a given year. Upon the individual Noteholder filing an exemption certificate ( Freistellungsauftrag ) with the Disbursing Agent, the Disbursing Agent will take the allowance into account when computing the amount of tax to be withheld. No withholding tax will be deducted if the Noteholder has submitted to the Disbursing Agent a certificate of non-assessment ( Nichtveranlagungsbescheinigung ) issued by the competent local tax office.

German withholding tax will not apply to gains from the disposal of the Notes held by a corporation as Noteholder while ongoing payments, such as interest payments under a coupon, are subject to withholding tax. The same exemption for capital gains maybe applied for where the Notes form part of a trade or business subject to further requirements being met. In these cases the Disbursing Agent may not take into account losses or foreign taxes withheld when determining the amount of tax to be withheld.

Taxation of current income and capital gains

The personal income tax liability of an individual Noteholder deriving income from capital investments under the Notes is, in principle, settled by the tax withheld. To the extent withholding tax has not been levied, such as in case of Notes kept in custody abroad, the individual Noteholder must report its or her income and capital gains derived from the Notes on its or her tax return and then will also be taxed at a rate of 25% (plus solidarity surcharge and church tax thereon, where applicable). Further, an individual Noteholder may request that all investment income of a given year is taxed at its or her lower individual tax rate based upon an assessment to tax with any withholding tax withheld in excess of the tax assessed being refunded. In each case, the deduction of expenses (other than transaction costs) on an itemized basis is disallowed. Further, any loss resulting from the Notes can only be off-set with investment income of the individual Noteholder realised in the same or following years.

Where the Notes form part of a trade or business or the income from the Notes qualifies as income from the letting and leasing of property the withholding tax, if any, will not settle the personal or corporate income tax liability. Where the Notes form part of the property of a trade or business, each year the part of the difference between the issue or purchase price and the redemption amount (if such amount is fixed at the time of the acquisition) attributable to such year as well as interest accrued must be taken into account as interest income. The respective Noteholder will have to report income and related (business) expenses on the tax return and the balance will be taxed at the Noteholder's applicable tax rate. Withholding tax levied, if any, will be credited against the personal or corporate income tax of the Noteholder. Where the Notes form part of the property of a German trade or business the current income and gains from the disposal, redemption, repayment or assignment of the Notes may also be subject to German trade tax.

Non-residents Interest, including Accrued Interest, and capital gains are not subject to German taxation, unless (i) the Notes form part of the business property of a permanent establishment, including a permanent representative, or a fixed base maintained in Germany by the Noteholder; or (ii) the income otherwise constitutes German-source income. In cases (i) and (ii) a tax regime similar to that explained above under "Tax Residents" applies.

Non-residents of Germany are, in general, exempt from German withholding tax on interest and the solidarity surcharge thereon. However, where the interest is subject to German taxation as set forth in the preceding paragraph and the Notes are held in a custodial account with a Disbursing Agent, withholding tax may be levied under certain circumstances. Where the Notes are not kept in a custodial account with a Disbursing Agent and interest or proceeds from the disposition, assignment

or redemption of a Note are paid by a Disbursing Agent to a non-resident, withholding tax generally will also apply. The withholding tax may be refunded based on an assessment to tax or under an applicable tax treaty.

Gross-up According to the Terms and Conditions, the Issuer undertakes in case of withholding of taxes at source or deduction of taxes at source for or on account of any present or future taxes, fees, duties, assessments or governmental charges of whatever nature which are imposed or levied by or on behalf of the country of domicile (or residence for tax purposes) of the Issuer or Germany or any political subdivision thereof or any authority or agency therein or thereof having power to tax (the Withholding Tax in this paragraph), unless withholding of tax by the Issuer is required by law, to pay additional amounts as may be necessary, subject to certain exceptions as set forth in the Terms and Conditions, in order that the net amounts receivable by the Noteholder after the withholding or deduction of such Withholding Tax shall equal the respective amounts which would have been receivable by such Noteholder had no such Withholding Tax been required. In accordance with these exceptions the withholding tax to be withheld on investment income (e.g. interest payments and capital gains) under the flat-tax regime ( Abgeltungsteuer ), the solidarity surcharge thereon (Solidaritätszuschlag ) and, if applicable, church tax ( Kirchensteuer ) do not constitute such a Withholding Tax. The Issuer may also choose not to undertake to gross up payments as described above.

Inheritance and Gift Tax No inheritance or gift taxes with respect to any Notes will arise under the laws of Germany, if, in the case of inheritance tax, neither the deceased nor the beneficiary, or, in the case of gift tax, neither the donor nor the donee, is a resident of Germany and such Note is not attributable to a German trade or business for which a permanent establishment is maintained, or a permanent representative has been appointed, in Germany. Exceptions from this rule apply to certain German expatriates.

Other Taxes No stamp, issue or registration taxes or such duties will be payable in Germany in connection with the issuance, delivery or execution of the Notes. Currently, net assets tax is not levied in Germany.

LUXEMBOURG TAXATION The following summary is of a general nature and is included herein solely for information purposes. It is based on the laws presently in force in Luxembourg, though it is not intended to be, nor should it be construed to be, legal or tax advice. Prospective investors in the Notes should therefore consult their own professional advisers as to the effects of state, local or foreign laws, including Luxembourg tax law, to which they may be subject.

Tax resident Under Luxembourg general tax laws currently in force and subject to the law of 23 December 2005 (the Law ) mentioned below, there is no withholding tax on payments of principal, premium or interest made to Luxembourg resident Noteholders, nor on accrued but unpaid interest in respect of Notes, nor is any Luxembourg withholding tax payable upon redemption or repurchase of Notes held by Luxembourg resident Noteholders.

Under the Law payments of interest or similar income made or ascribed by a paying agent established in Luxembourg to or for the immediate benefit of an individual beneficial owner who is a resident of Luxembourg will be subject to a withholding tax of 10%. Such withholding tax will be in full discharge of income tax if the beneficial owner is an individual acting in the course of the management of his/her private wealth. Responsibility for the withholding of the tax will be assumed

by the Luxembourg paying agent. Payments of interest under the Notes coming within the scope of the Law would be subject to withholding tax of 10%.

Non-residents Under Luxembourg general tax laws currently in force and subject to the laws of 21 June 2005 (the Laws ) mentioned below, there is no withholding tax on payments of principal, premium or interest made to non-resident Noteholders, nor on accrued but unpaid interest in respect of the Notes, nor is any Luxembourg withholding tax payable upon redemption or repurchase of the Notes held by non- resident Noteholders.

Under the Laws implementing the EC Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments and ratifying the treaties entered into by Luxembourg and certain dependent and associated territories of EU Member States (the Territories ), payments of interest or similar income made or ascribed by a paying agent established in Luxembourg to or for the immediate benefit of an individual beneficial owner or a residual entity, as defined by the Laws, which is a resident of, or established in, an EU Member State (other than Luxembourg) or one of the Territories will be subject to a withholding tax unless the relevant recipient has adequately instructed the relevant paying agent to provide details of the relevant payments of interest or similar income to the fiscal authorities of his/her/its country of residence or establishment, or, in the case of an individual beneficial owner, has provided a tax certificate issued by the fiscal authorities of his/her country of residence in the required format to the relevant paying agent. Where withholding tax is applied, it will be levied at a rate of 15%. during the first three-year period starting 1 July 2005, at a rate of 20%. for the subsequent three-year period and at a rate of 35% thereafter. Responsibility for the withholding of the tax will be assumed by the Luxembourg paying agent. Payments of interest under the Notes coming within the scope of the Laws would at present be subject to withholding tax of 15%.

EU SAVINGS DIRECTIVE Under EC Council Directive 2003/48/EC on the taxation of savings income, Member States are required to provide to the tax authorities of another Member State details of payments of interest (or similar income) paid by a person within its jurisdiction to an individual resident in that other Member State. However, for a transitional period, Austria and Luxembourg are instead required (unless during that period they elect otherwise) to operate a withholding system in relation to such payments (the ending of such transitional period being dependent upon the conclusion of certain other agreements relating to information exchange with certain other countries). A number of non-EU countries and territories including Switzerland have adopted similar measures (a withholding system in the case of Switzerland).

On 15 September 2008 the European Commission issued a report to the Council of the European Union on the operation of the Directive, which included the Commission's advice on the need for changes to the Directive. On 13 November 2008 the European Commission published a more detailed proposal for amendments to the Directive, which included a number of suggested changes. If any of those proposed changes are made in relation to the Directive, they may amend or broaden the scope of the requirements described above.

SUBSCRIPTION, OFFER AND SALE

GENERAL Deutsche Bank AG, London Branch, HSBC Bank plc, Commerzbank Aktiengesellschaft, J.P. Morgan Securities Ltd., The Royal Bank of Scotland plc, and UniCredit Bank AG (the Managers ) will, pursuant to a Subscription Agreement (the Subscription Agreement ) to be signed on or about 26 May 2010, agreed to subscribe or procure subscribers for the Notes. The Managers will be entitled, under certain circumstances, to terminate the agreement reached with the Issuer. In such event, no Notes will be delivered to investors. Furthermore, the Issuer will agree to indemnify the Managers against certain liabilities in connection with the offer and sale of the Notes. The Managers or their affiliates have provided from time to time, and expect to provide in the future, investment services to the Issuer and its affiliates, for which the Managers or their affiliates have received or will receive customary fees and commissions.

There are no interests of natural and legal persons other than the Issuer involved in the issue, including conflicting ones that are material to the issue.

OFFER OF THE NOTES

Offer period and determination of pricing details The Notes will be offered to investors by the Managers during an offer period which will commence on 19 May 2010 and will be open until 28 May 2010 (the Issue Date ) subject to a shortening or extension of the offer period. During the offer period investors may submit orders to the Managers. The Issue Price, the rate of interest, the number of Notes to be issued and the aggregate nominal amount of the issue will be determined on the basis of the orders received by the Managers on the pricing date which is expected to be on or about 20 May 2010 (the Pricing Date ). The number of Notes to be issued and the aggregate nominal amount will be determined on the basis of the number and the volume of orders which offer a yield acceptable to the Issuer. Such information as well as the results of the offer and the yield will be included in a notice which will be filed with the CSSF and published on the website of the Luxembourg Stock Exchange (www.bourse.lu) after the date of pricing and prior to the Issue Date (the Pricing Notice ). Any onsale of Notes will be subject to market conditions. Should the Issuer and the Managers determine any shortening or extension of the offer period, which could be the result of changing market conditions, such changes will be notified in the same manner as the pricing details will be published. The expenses of the issue of the Notes will be approximately € 200,000. The commission in connection with the offering of the Notes will be up to 0.325% of the aggregate principal amount of the Notes.

Public offer

The Notes will be sold to institutional investors and retail investors in compliance with applicable public offer restrictions. The Notes may be offered to the public in each of Austria, Germany, Luxembourg and The Netherlands following the effectiveness of the notification of the Prospectus by the CSSF according to article 18 of the Prospectus Directive.

Conditions and technical details of the offer

The following sets out details of the offer which is required to comply with the requirements of the applicable prospectus regulation. There are no conditions to which the offer is subject. Prior to the Pricing Date the Joint Lead Managers (i.e. Deutsche Bank AG, London Branch and HSBC Bank plc) will open an order book. The Managers will invite investors to provide offers to purchase Notes using the information system Bloomberg or any other commonly used information systems. Upon such

invitation investors will be made through, and investors may submit their offers to buy Notes, using the information system Bloomberg or any other commonly used information systems. Any offer made by investors will specify a minimum credit spread and the number of Notes the relevant investor is willing to purchase. Following the publication of the Pricing Notice the Managers will offer the Notes upon request through banking institutions in Austria, Germany, Luxembourg and The Netherlands. Subscription rights for the Notes will not be issued. Therefore, there are no procedures for the exercise of any right of pre-emption, the negotiability of subscription rights and the treatment of subscription rights not exercised. Any investor who has submitted an order in relation to the Notes whose order is accepted will receive a confirmation by electronic mail, fax or through commonly used information systems relating to the respective allotment of Notes. Before an investor receives a confirmation from the Managers that its purchase order for the Notes has been accepted, the investor may reduce or withdraw its purchase orders. Each investor will receive a confirmation of the results of the offer in relation to its respective allotment of the Notes. There is no minimum or maximum amount of Notes to be purchased. Investors may place offers to purchase Notes in any amount.

Confirmation in relation to an order and allotments as well as delivery of the Notes

Following pricing of the Notes and confirmation which orders have been accepted and which amounts have been alloted to particular investors, delivery and payment of the Notes will be made within five business days after the date of pricing of the Notes and the confirmation of the allotment to investors. The Notes will be delivered via book-entry through the Clearing Systems (see "General Information – Clearing Systems " on page 80) and their depository banks against payment of the Issue Price.

Charges and costs relating to the offer

The Issuer will not charge any costs, expenses or taxes directly to any investor. Investors must inform themselves about any costs, expenses or taxes in connection with the Notes which are generally applicable in their respective country of residence, including any charges their own depository banks charge them for purchasing or holding securities.

Method of determination of the Issue Price and the rate of interest

The rate of interest and the Issue Price for the Notes will be determined at the time of pricing on the basis of a yield which is determined by adding a credit spread to the level of the Midswaps at the time of pricing. The credit spread will be determined on the basis of the orders received and confirmed by the Managers. Orders will specify a minimum credit spread and may only be confirmed at or above such credit spread. The level of the Midswaps will be determined as the average yield of the bid and ask prices of Interest-Swap Transactions ( Midswaps ) with a maturity similar to the maturity of the Notes shown on the Reuters page ICAPEURO or on any other screen page which is conventionally used to price Eurobond transactions at the time of pricing. The resulting yield will be used to determine an Issue Price (which is expected to be less than par) and a rate of interest (which is expected to be a percentage figure which can be evenly divided by 1/8 of a full per cent. and which will be correspondingly higher if a higher Issue Price is determined and which will be correspondingly lower if a lower Issue Price is determined), all to correspond to the yield which reflects the level of the Midswaps and the credit spread. In the event that the figures for the relevant Midswaps shall not be shown as set out above and the relevant figures shall be determined in a manner which banks and other institutional market participants apply at that time. The resulting figure will represent the yield of the Notes and such yield will be used to determine the rate of interest and the Issue Price.

SELLING RESTRICTIONS

General

Neither the Issuer, the Guarantor nor any of the Managers has made any representation that any action will be taken in any jurisdiction by the Managers, the Issuer or the Guarantor that would permit a public offering of the Notes, or possession or distribution of this Prospectus (in preliminary, proof or final form) or any other offering or publicity material relating to the Notes (including roadshow materials and investor presentations), in any country or jurisdiction where action for that purpose is required. Each Manager has agreed that it will comply to the best of its knowledge and belief in all material respects with all applicable laws and regulations in each jurisdiction in which it acquires, offers, sells or delivers Notes or has in its possession or distributes this Prospectus (in preliminary, proof or final form) or any such other material, in all cases at its own expense. It will also ensure that no obligations are imposed on the Issuer, the Guarantor or any other Manager in any such jurisdiction as a result of any of the foregoing actions.

United States

The Notes and the Guarantee have not been and will not be registered under the US Securities Act and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. Each Manager will represent that it has not offered or sold, and will agree that it will not offer or sell, any Notes and the Guarantee constituting part of its allotment within the United States except in accordance with Rule 903 of Regulation S under the US Securities Act. Accordingly, neither it, its affiliates, nor any persons acting on its or their behalf have engaged or will engage in any directed selling efforts with respect to the Notes and the Guarantee. Terms used in this paragraph have the meanings given to them by Regulation S.

In addition, each Manager will represent, warrant and agree that, except to the extent permitted under U.S. Treasury Regulations section 1.163-5(c)(2)(i)(D) (the Tefra D Rules ):

(a) it has not offered or sold Notes, and during the restricted period shall not offer or sell Notes, directly or indirectly to a United States person or to a person who is within the United States or its possessions, and it has not delivered and shall not deliver within the United States or its possessions Notes that are sold during the restricted period;

(b) it has and throughout the restricted period it shall have in effect procedures reasonably designed to ensure that its employees or agents who are directly engaged in selling Notes are aware that the Notes may not be offered or sold during the restricted period to a United States person or to a person who is within the United States or its possessions, except as permitted by the Tefra D Rules;

(c) if it is a United States person, it is acquiring the Notes for purposes of resale in connection with their original issuance and not for the purpose of resale directly or indirectly to a United States person or a person within the United States or its possessions and it shall acquire or retain Notes for its own account only in accordance with the requirements of section 1.163- 5(c)(2)(i)(D)(6) of the Tefra D Rules;

(d) with respect to each affiliate that acquires Notes from it for the purpose of offering or selling such Notes during the restricted period, it either (i) repeats and confirms the representations contained in clauses (a), (b) and (c) of this paragraph on behalf of such affiliate or (ii) agrees that it shall obtain from such affiliate for the benefit of the Issuer the representations contained in clauses (a), (b) and (c) of this paragraph; and

(e) it shall obtain for the benefit of the Issuer or the Guarantor the representations and agreements contained in clauses (a), (b), (c) and (d) of this paragraph from any person other than its affiliate with whom it enters into a written contract, as defined in section § 1.163- 5(c)(2)(i)(D)(4) of the Tefra D Rules, for the offer or sale of Notes during the restricted period.

Terms used in this paragraph have the meanings given to them by the U.S. Internal Revenue Code of 1986 and Treasury Regulations thereunder, including the Tefra D Rules.

Public Offer Selling Restriction under the Prospectus Directive In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a Relevant Member State ), each Manager will represent and agree that with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State (the Relevant Implementation Date ) it has not made and will not make an offer of Notes which are the subject of the offering contemplated by this Prospectus to the public in that Relevant Member State other than Austria, Germany, Luxembourg and the Netherlands from the time the Prospectus has been approved by the competent authority in Luxembourg and published and notified to the relevant competent authorities in accordance with the Prospectus Directive, except that it may, with effect from and including the Relevant Implementation Date, make an offer of Notes to the public in that Relevant Member State:

(a) to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities;

(b) to any legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000; and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts;

(c) to fewer than 100 natural or legal persons (other than qualified investors as defined in the Prospectus Directive); or

(d) in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of Notes shall require the Issuer, the Guarantor or any Manager to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive.

For the purposes of this provision, the expression an offer of Notes to the public in relation to any Notes in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase or subscribe the Notes, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression Prospectus Directive means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State.

United Kingdom Each Manager will represent and agree that:

(a) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000

(FSMA )) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer or the Guarantor; and

(b) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to any Notes in, from or otherwise involving the United Kingdom.

GENERAL INFORMATION

LISTING Application has been made to the Luxembourg Stock Exchange for the listing of the Notes on the Official List of the Luxembourg Stock Exchange and to trading of the Notes on the Euro MTF of the Luxembourg Stock Exchange. The Luxembourg Stock Exchange's Euro MTF is not a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC).

USE OF PROCEEDS The net proceeds of the issue of the Notes will be lent by the Issuer to the Guarantor or other companies of the Heraeus Group which will use the monies for general corporate purposes.

YIELD The yield of the Notes is . Such yield is calculated in accordance with the ICMA (International Capital Markets Association) method.

NOTEHOLDER RESOLUTIONS UNDER THE GERMAN BOND ACT Pursuant to § 5(1) of the German Bond Act ( Schuldverschreibungsgesetz – SchVG ), the Terms and Conditions provide that § 5 through § 22 SchVG are applicable to the Notes. Pursuant to such provisions, Noteholders may agree to amend certain Terms and Conditions by voting on certain amendments on the Terms and Conditions in a meeting of Noteholders. Such meeting of Noteholders may, inter alia , be called by the Issuer or a common representative of the Noteholders. If, in accordance with §§ 5 et seqq. SchVG, the majority of the Noteholders participating in the relevant meeting of Noteholders agrees to amendments of the Terms and Conditions and the Issuer agrees to such amendments, such Terms and Conditions, as amended, are binding upon all Noteholders.

CLEARING SYSTEMS The Notes have been accepted for clearance through Euroclear Bank SA/NV, 1 Boulevard du Roi Albert II, B-1210 Brusssels, Belgium and Clearstream Banking, société anonyme, 42 Avenue JF Kennedy, 1855 Luxembourg, Luxembourg. The ISIN for this issue is XS0511389453, the Common Code is 051138945 and the German Securities Identification Number (WKN) is A1ELWC.

RATING Ratings assigned to the Guarantor by certain independent rating agencies are an indicator of the Guarantor’s ability to meet its obligations in a timely manner. The lower the assigned rating is on the respective scale the higher the respective rating agency assesses the risk that obligations will not be met at all or not be met in a timely manner. As of the publication date of this Prospectus, the Guarantor's long-term debt and short-term debt has been rated "BBB+" and "A-2", respectively, by Standard & Poor's Rating Services, a Division of the McGraw-Hill Companies Inc ( Standard & Poor's). The Guarantor has been rated "Baa1" by Moody's Investors Service, Inc. The Notes will be rated by Standard & Poor's. A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation.

U.S. TAX The Notes will contain the following legend: "Any United States person who holds this obligation will be subject to limitations under the United States income tax laws, including the limitations provided in Sections 165(j) and 1287(a) of the Internal Revenue Code."

INTEREST OF NATURAL AND LEGAL PERSONS INVOLVED Each Manager is entitled to customary fees, partly depending on the success of the issuance of the Notes. Furthermore, the auditors of the Issuer and the Guarantor and legal advisors are entitled to customary fees. Certain of the Managers and their affiliates have from time to time performed, and in the future may perform, various financial advisory, commercial banking (including lending) and investment banking services for the Issuer or the Guarantor and its affiliates, for which they have received and/or will receive fees and expenses. Besides the disclosed interests above, so far as the Issuer and the Guarantor are aware, no person involved in the offer of the Notes has an interest material to the offer.

DOCUMENTS ON DISPLAY For the period of 12 months following the date of this Prospectus, copies of the following documents will be available for inspection from the offices of the Guarantor and the Principal Paying Agent as set out at the end of this Prospectus:

(a) the articles of association of the Issuer and the articles of association of the Guarantor (each in German language);

(b) the Guarantee; and

In addition, copies of this Prospectus and each document incorporated by reference is available on the Luxembourg Stock Exchange's website at www.bourse.lu as long as the Notes are listed on the Luxembourg Stock Exchange's Euro MTF and can be obtained free of charge from the offices of the Guarantor and the Principal Paying Agent as set out at the end of this Prospectus.

DOCUMENTS INCORPORATED BY REFERENCE

The following documents which have previously been published or which are published simultaneously with this Prospectus and filed with the CSSF shall be incorporated in, and form part of, this Prospectus. Copies of all documents incorporated by reference are available on the website of the Luxembourg Stock Exchange (www.bourse.lu) and can be obtained without charge from the offices of the Guarantor and the Principal Paying Agent as set out at the end of this Prospectus. Any information not listed below but included in the documents incorporated by reference is given for information purpose only.

THE ISSUER The audited financial interim accounts of Heraeus Finance GmbH as of 31 March 2010 extracted from the Heraeus Finance GmbH auditor's report ( Bestätigungsvermerk ), consisting of

• balance sheet (p. 2)

• income statement (p. 2)

• notes (p. 3 - 5)

• auditor's report (p. 6)

THE GUARANTOR 1) The published audited consolidated financial statements (Konzernabschluss ) of the Heraeus Group as of 31 December 2008, consisting of

• balance sheet (p. 2 – 3 2)

• income statement (p. 4)

• cash flow statement (p. 5)

• statement of recognised income and expenses (p. 6)

• statement of changes in shareholders’ equity (p. 7)

• notes (p. 8 - 68)

• auditor's report (p. 69 - 70)

2) The published audited consolidated financial statements ( Konzernabschluss ) of the Heraeus Group as of 31 December 2009, consisting of

• balance sheet (p. 2-33)

• income statement (p. 4)

• cash flow statement (p. 5)

2 The page numbers in this sub-paragraph (a) refer to the English language version of the consolidated financial statements 2008. 3 The page numbers in this sub-paragraph (b) refer to the English language version of the consolidated financial statements 2009.

• statement of comprehensive income (p. 6)

• statement of changes in shareholders’ equity (p. 7)

• notes (p. 8-69)

• auditor's report (p. 70-71)

ANNEX 1 (FINANCIAL INFORMATION CONCERNING THE GUARANTOR)

Consolidated Balance Sheet (IFRS) of Heraeus Holding GmbH, Hanau, as of December 31, 2009 in € million Dec. 31, 2009 Dec. 31, 2008

Assets

Cash and cash equivalents 380.3 507.2 Securities 268.3 150.4 Trade receivables 459.5 378.9 Current tax receivables 107.8 75.5 Miscellaneous receivables and other assets 65.8 96.5 Inventories - excluding precious metal 263.6 311.2 Precious metals 399.8 370.9

Current assets 1,945.1 1,890.6

Goodwill 33.4 29.3 Other intangible assets 83.6 82.2 Property, plant, and equipment 672.4 654.6 Investments at equity 102.4 106.7 Other financial assets 4.1 9.4 Other non-current assets 35.2 21.9 Deferred tax assets 52.7 61.7

Non-current assets 983.8 965.8

Assets 2,928.9 2,856.4

Shareholders' equity and liabilities

Promissory notes 50.0 - Trade payables 177.4 157.5 Liabilities due to banks 105.7 100.3 Tax liabilities 34.1 47.5 Other current liabilities 103.8 138.7 Current provisions 66.7 67.6

Current liabilities 537.7 511.6

Promissory notes 249.6 299.5 Liabilities due to banks 3.6 21.4 Other non-current liabilities 27.2 40.1 Provisions for pensions and similar obligations 253.7 244.1 Other non-current provisions 58.2 56.2 Deferred tax liabilities 114.6 97.2

Non-current liabilities 706.9 758.5

Capital subscribed 210.0 210.0 Retained earnings 1,506.0 1,420.8 Other comprehensive income -43.9 -56.4 Minority interests 12.2 11.9

Shareholders' equity 1,684.3 1,586.3

Total shareholders' equity and liabilities 2,928.9 2,856.4

Consolidated Income Statement (IFRS) of Heraeus Holding GmbH, Hanau, for the period January 1 to December 31, 2009 in € million 2009 2008

Revenue 16,220.1 15,913.5 Cost of materials -15,211.4 -14,794.4 Personnel expenses -553.9 -547.0 Amortization, depreciation, and impairment -102.9 -80.0 Other operating income 99.6 114.9 Other operating expenses -278.6 -348.1 Income from investments accounted for using the equity method -1.8 15.8 Earnings before interest and taxes (EBIT) 171.1 274.7

Financial result -2.9 -22.4 Interest share of provisions for pensions -12.5 -11.6 Income before taxes 155.7 240.7

Current taxes -18.1 -83.5 Deferred taxes -19.4 11.3 Net income 118.2 168.5

Thereof attributable to shareholders of the Group 116.6 166.5 Thereof attributable to minority interests 1.6 2.0

Consolidated Cash Flow Statement (IFRS) of Heraeus Holding GmbH, Hanau, for the period January 1 to December 31, 2009 in € million 2009 2008

Net income 118.2 168.5 Depreciation and impairment/write-ups of non-current assets 77.2 82.9 Changes in inventories 17.9 151.1 Changes in trade receivables -80.5 121.1 Changes in trade payables 20.3 -2.0 Changes in provisions 3.1 -33.6 Changes in other assets and liabilities -52.8 -12.4 Result from the disposal of non-current assets 4.3 4.9 Other non-cash expenses/income 23.4 -21.2

Cash flow from operating activities 131.1 459.3

Cash inflows from the disposal of non-current assets 13.2 6.5 Cash outflows for investments in non-current assets -104.1 -121.0 Cash outflows for acquisitions -12.0 -133.5 Changes in other financial assets -109.4 128.3

Cash flow from investing activities -212.3 -119.7

Cash inflows from minority interests 0.8 0.6 Dividends paid, including dividends to minority interests -37.3 -38.4 Change in interest-bearing liabilities -10.2 34.6

Cash flow from financing activities -46.7 -3.2

Net change in cash and cash equivalents -127.9 336.4 Effect of exchange rate differences on cash and cash equivalents 1.0 1.2 Cash and cash equivalents at the beginning of the period 507.2 169.6

Cash and cash equivalents at the end of the period 380.3 507.2

in € million 2009 2008

Cash flow from operating activities 131.1 459.3 Cash inflows from the disposal of non-current assets 13.2 6.5 Cash outflows for investments in non-current assets -104.1 -121.0 Cash outflows for acquisitions -12.0 -133.5

Free cash flow 28.2 211.3

Consolidated Statement of Comprehensive Income (IFRS) of Heraeus Holding GmbH, Hanau, for the period January 1 to December 31, 2009

2009 2008 Total Tax Total Tax Total after Total after before expenses/ before expenses/ taxes taxes taxes income taxes income in € million

Net income 155.7 -37.5 118.2 240.7 -72.2 168.5 Income and expenses recognized directly in equity: Currency translation differences -4.3 - -4.3 37.5 - 37.5 Valuation gains/losses from available-for-sale financial assets taken to equity 9.0 -1.3 7.7 0.5 0.2 0.7 Valuation gains/losses from available-for-sale financial assets transferred to the income statement -0.5 -0.2 -0.7 -3.3 -0.4 -3.7 Valuation gains/losses from hedging transactions taken to equity 12.2 -3.8 8.4 -24.0 7.4 -16.6 Valuation gains/losses from hedging transactions transferred to the income statement 9.5 -2.9 6.6 -17.2 5.3 -11.9 Actuarial gains/losses from performance-dependent provisions for pensions and similar obligations taken to equity -7.6 2.4 -5.2 5.7 -1.7 4.0 Income and expenses recognized directly in equity 18.3 -5.8 12.5 -0.8 10.8 10.0 Total recognized income and expenses 174.0 -43.3 130.7 239.9 -61.4 178.5

Thereof attributable to shareholders of the Group 129.1 176.5 Thereof attributable to minority interests 1.6 2.0

Consolidated Statement of Changes in Shareholders' Equity (IFRS) of Heraeus Holding GmbH, Hanau, as of December 31, 2009

Other comprehensive income Capital Retained Currency Actuarial gains Financial Valuation of Minority Shareholders' subscribed earnings translation and losses instruments available-for- interests equity sale financial in € million assets Shareholders' equity as of Dec. 31, 2007/Jan. 1, 2008 210.0 1,289.1 -98.4 16.4 11.9 3.7 11.2 1,443.9

Net income 2008 - 166.5 - - - - 2.0 168.5 Exchange effects - - 37.5 - - - - 37.5 Actuarial gains and losses - - - 4.0 - - - 4.0 Financial instruments - - - - -28.5 - - -28.5 Valuation of available-for-sale financial assets ------3.0 - -3.0 Total comprehensive income - 166.5 37.5 4.0 -28.5 -3.0 2.0 178.5 Distribution - -35.7 - - - - -2.7 -38.4 Other changes - 0.9 - - - - 1.4 2.3 Shareholders' equity as of Dec. 31, 2008/Jan. 1, 2009 210.0 1,420.8 -60.9 20.4 -16.6 0.7 11.9 1,586.3

Net income 2009 - 116.6 - - - - 1.6 118.2 Exchange effects - - -4.3 - - - - -4.3 Actuarial gains and losses - - - - 15.0 - - 15.0 Financial instruments - - - -5.2 - - - -5.2 Valuation of available-for-sale financial assets - - - - - 7.0 - 7.0 Total comprehensive income - 116.6 -4.3 -5.2 15.0 7.0 1.6 130.7 Distribution - -35.3 - - - - -2.0 -37.3 First-time consolidation of associated companies at equity - 4.0 - - - - - 4.0 Other changes - -0.1 - - - - 0.7 0.6 Shareholders' equity as of Dec. 31, 2009 210.0 1,506.0 -65.2 15.2 -1.6 7.7 12.2 1,684.3

THE ISSUER THE GUARANTOR

Heraeus Finance GmbH Heraeus Holding GmbH Heraeusstraße 12-14 Heraeusstraße 12-14 63450 Hanau 63450 Hanau Germany Germany

JOINT LEAD MANAGERS

Deutsche Bank AG, London Branch HSBC Bank plc Winchester House 8 Canada Square 1 Great Winchester Street London E14 5HQ London EC2N 2DB United Kingdom United Kingdom

CO-LEAD MANAGERS

Commerzbank Aktiengesellschaft J.P. Morgan Securities Ltd. Kaiserstraße 16 (Kaiserplatz) 125 London Wall 60311 Frankfurt am Main London EC2Y 5AJ Germany United Kingdom

UniCredit Bank AG The Royal Bank of Scotland plc Arabellastr. 12 135 Bishopsgate 81925 München London EC2M 3UR Germany United Kingdom

PRINCIPAL PAYING AGENT Deutsche Bank Aktiengesellschaft Grosse Gallusstrasse 10-14 60272 Frankfurt am Main Germany

LEGAL ADVISERS

To the Issuer and the Guarantor as to German To the Managers as to German law law

Allen & Overy LLP Linklaters LLP Taunustor 2 Mainzer Landstraße 16 60311 Frankfurt am Main 60325 Frankfurt am Main Germany Germany

AUDITORS

To the Issuer and the Guarantor

KPMG AG Wirtschaftsprüfergesellschaft Marie-Curie-Strasse 30 60439 Frankfurt am Main Germany