(2) Inventories

Inventories break down as follows:

As of the balance sheet date, write-down of inventories totaled 67.3 million Euro (2002: 53.7 million Euro).

Inventories with a book value of 184.1 million Euro are shown on the balance sheet at the lower market value as the net selling price was below the acquisition or production cost.

Only insignificant write-ups were effected on inventories in accordance with the statutory requirements.

The inventories shown are not subject to any significant restrictions on title or disposal.