Report of the Supervisory Board

In the fiscal year 2008, Bechtle AG recorded a positive business performance despite the increasingly difficult market conditions. In the year of its 25 th anniversary, the company further expanded its market position and effectively prepared for future challenges by adopting a suitable organisational structure. Profitable growth continues to be the focal point of Bechtle’s activities.

In the fiscal year 2008, the Supervisory Board again meticulously performed all duties imposed on it by law and as required by the articles of incorporation. In particular, this included the increased auditing and controlling obligations as specified by the jurisdiction in recent years. We regularly provided the Executive Board with advice concerning the administration of the group and monitored the company's management and development. We were directly involved at an early stage in all decisions of material importance to the company.

The Executive Board regularly, duly, and comprehensively informed the Supervisory Board orally and in writing about the corporate planning and strategy, the business performance, and the group's position as well as the risk situation and the risk and opportunity management.

Apart from the personal contact with individual members of the Supervisory Board, the Executive Board informed the Supervisory Board about the development of incoming orders, revenue, contribution margin, earnings before taxes, and staff development of the group, the segments, and individual subsidiaries on a monthly basis. Moreover, the past quarter and the short to medium-term perspectives were elaborated at quarterly meetings.

Furthermore, the Supervisory Board actively examined the company. At its meetings, the Supervisory Board regularly looked into the business, revenue, and earnings performance of the group and its segments as well as the financial and assets position, the implementation of the strategy, the risk situation, and the staff development.

These independent auditing and monitoring measures by members of the Supervisory Board especially included the periodic review of the income statements of individual subsidiaries, intensive screening for anomalies, and participation in strategy meetings, directors' conferences, and risk management sessions.

Thanks to the timely and detailed information received from the Executive Board and the independent audits, the Supervisory Board was able to comply fully with its monitoring duties. It was not necessary to review accounts and documents as defined in Section 111 (2) of the German Stock Corporation Act (AktG) beyond the scope of the audit of the annual financial statements.