Proposal on the Appropriation of the Net Retained Earnings of KSB AG

We will propose to the Annual General Meeting on 18 May 2011 to appropriate the net retained earnings of € 28,374,698.46 of KSB AG, Frankenthal, containing retained earnings brought forward of € 464,845.89, as follows:

Distribution of a dividend of
€ 12.00 per ordinary no-par-value share
= 10,639,380.00 €
and, in accordance with the Articles of Association,
€ 12.26 per preference no-par-value share
= 10,601,369.12 €
Appropriation to revenue reserves 7,000,000.00 €
Total 28,240,749.12 €
Carried forward to new account 133,949.34 €
28,374,698.46 €

Frankenthal, 14 March 2011

The Board of Management

The annual financial statements of KSB AG, Frankenthal, were prepared in accordance with German accounting principles. BDO AG Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, has audited these annual financial statements and issued an unqualified audit opinion. The annual financial statements are published in the electronic Bundesanzeiger [German Federal Gazette]. The annual financial statements can also be downloaded from our web site at www.ksb.com, or sent in print form on request.