Report of the Supervisory Board

Throughout fiscal year 2007, the Executive Board of MAN Ferrostaal AG provided the Supervisory Board with continuous and comprehensive information regarding all relevant business activities and company plans as well as the business performance of the MAN Ferrostaal Group as a whole. Jointly they discussed important business events as well as the state of the company's affairs. The Supervisory Board received quarterly written reports on current business activities. Two meetings were held during which the Executive Board outlined its position on key areas such as the strategic development of the company, corporate planning and significant projects. The Supervisory Board also satisfied itself that effective compliance and risk management systems are being used. I also regularly discussed questions of business development and strategic planning with the Chief Executive Officer outside of Supervisory Board meetings. There were two meetings of the committee for personnel matters.

MAN Ferrostaal AG's annual financial statements for the year ended December 31, 2007 were audited by the Düsseldorf based auditors KPMG Deutsche Treuhand-Gesellschaft AG, who issued an unrestricted auditor's certificate on the accounts. Furthermore, KPMG audited the summarised subgroup report of the MAN Ferrostaal Group for fiscal year 2007, consisting of balance sheet, income statement and cash flow statement, and certified its truth and fairness in accordance with the applied accounting regulations.

The auditor took part in the Supervisory Board's accounts review meeting and presented a report on the audit. The Supervisory Board noted and approved the audit results. Having completed its own audit, the Supervisory Board has no objections to raise in respect of the annual financial statements of MAN Ferrostaal AG. It has noted the summarised subgroup report and formally approved the annual financial statements of MAN Ferrostaal AG, as prepared by the Executive Board, for the year ended December 31, 2007.

With effect from January 1, 2007, Mr. Michael Beck was appointed to the Executive Board of MAN Ferrostaal AG. Since March 1, 2007, he has been responsible for Finance and Controlling and thus succeeds Mr. Jens Gesinn, who retired on June 30, 2007. Mr. Gesinn had been a member of the Executive Board of MAN Ferrostaal AG since 1997 and made a significant contribution toward shaping the company during his time at the firm. The Supervisory Board would like to thank Mr. Gesinn for his commitment and pay tribute to his achievements at the company.

Furthermore, Dr. Stefan Reimelt was appointed to the Executive Board with effect from October 15, 2007. In the Projects division, Dr. Reimelt is in charge of the Biofuels business area as well as project development.

In fiscal year 2007, MAN Ferrostaal AG posted a record profit of 179 million Euro. The past fiscal year was characterised by a further concentration of the company's activities as well as the development of two new business areas - Solar and Biofuels. The strategic repositioning of the international steel-trading unit with its transfer to CCC Steel GmbH & Co. KG, Hamburg, and the subsequent name change to Coutinho & Ferrostaal GmbH & Co. KG, was successfully completed. MAN Ferrostaal has a 33.33 percent stake in this company.

We would like to thank the members of the Executive Board and all the employees of the MAN Ferrostaal Group for their hard work and commitment. Our thanks also goes to the staff representatives for their practical and constructive cooperation in the interest of the company.

Essen, February 29, 2008

Chairman of the Supervisory Board

Håkan Samuelsson