KHD Khd Humboldt Wedag International Ltd

NEW YORK, March 30 /PRNewswire-FirstCall/ -- KHD Humboldt Wedag International Ltd. (NYSE: KHD) announces that its shareholders approved the first tranche distribution of 26% of the shares of KHD Humboldt Wedag International AG ("KID").  This is the first step in the restructuring of KHD into two distinct legal entities: (1) a mineral royalty company, Terra Nova Royalty Corporation ("Terra Nova") and (2) an industrial plant technology, equipment and service company, KID.

KHD has changed its name to Terra Nova.  Terra Nova will continue to be listed on the New York Stock Exchange and trade the "regular way" under a new trading symbol TTT, with the first day of trading being on March 31, 2010.

KID will be listed on the regulated market of the Frankfurt Stock Exchange trading under trading symbol KWG.

The shareholders of record who are eligible to receive the KID shares are registered shareholders and/or DTC participants of Terra Nova, who will need to establish a Clearstream eligible brokerage or custodian account for the acceptance of the KID shares.  There will be no physical certificates distributed.  The KID Shares will be quoted on the Regulated Market of the Frankfurt Stock Exchange and, therefore, will be transferable in electronic form only.  As virtually all major brokerage firms will have Clearstream eligible accounts, shareholders whose shares of Terra Nova are registered in the name of a brokerage firm should contact their brokerage firm for further information.

It is important that all new KID shareholders realize that there presently is a very limited or thin market for the KID shares on the Frankfurt Stock Exchange due to the fact that the public float of KID is approximately only 2 percent of KID's outstanding share capital.  As a result, until our shareholders claim and receive their KID shares and a more orderly trading market develops, the trading float will remain extremely small, trading levels will be very low or thin and, as a result, there may be extreme volatility in quoted or trading prices for KID shares.  Until shareholders take up their KID shares and a more orderly market develops, traded or quoted prices for KHD shares may not be reflective of their value.  We encourage you to take up your new KID shares now.

There are several companies quoted on European markets with similar names to our company, please make sure you are using the trading symbol KWG to correct identify your KID shares.

With our realignment, Silke Stenger and Gerhard Rolf have resigned from the Board of Directors of Terra Nova and joined the board of KID.  We are also pleased to announce that Ian Rigg has joined the board of Terra Nova.  Jouni Salo has resigned as President and CEO and has joined KID as Managing Director.  Michael Smith, Chairman, has been appointed as interim President and CEO of Terra Nova.

About Terra Nova Royalty Corporation

Terra Nova Royalty Corporation owns a royalty stream on the Wabush Iron Ore Mine in Labrador Newfoundland and is active in the royalty industry.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future growth, results of operations, performance and business prospects and opportunities.  The worldwide macroeconomic downturn has resulted in production slow down less demand for iron ore worldwide. Further, it may result in a further decrease in the demand for our products or services.  Any of these may have a material adverse effect on our operating results and financial condition. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain assumptions. These assumptions, which include management's current expectations, estimates and assumptions about certain projects and the markets the Company operates in, the global economic environment, interest rates, exchange rates and our ability to attract and retain customers and to manage our assets and operating costs, may prove to be incorrect.  A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements.

SOURCE KHD Humboldt Wedag International Ltd.