Rieter Reorganizes Management, CEO Departs

Winterhur, Switzerland, Aug. 4, 2009--The Board of Directors of Rieter Holding Ltd. has elected its Chairman Erwin Stoller as Executive Chairman.

The heads of both operating divisions of Rieter, Textile Systems and Automotive Systems, and the head of the Corporate Center will report directly to Stoller.

This E. Schneider, vice chairman of the board, has been elected Lead Director. CEO Hartmut Reuter will leave the company.

With the move, Rieter said the board is assuming greater responsibility at the operating level in a very difficult business environment and thus shortens the decision-making process.

On the basis of current information, Rieter said it will post a decline of some 50% in sales for the first six months of 2009 compared with the same period of the previous year.

Rieter said it expects the market environment to remain difficult for the next two years.