Article 1

United Kingdom

The state aid implemented by Germany for Kahla Porzellan GmbH under measure 8 – income from exploiting the company’s real estate to be used to repay loans guaranteed by the Treuhand – is incompatible with the common market.

The following state aid granted by Germany to Kahla/Thüringen Porzellan GmbH is incompatible with the common market:

(a)

Measure 11: a capital participation by TIB;

(b)

Measure 12: a shareholder loan from TIB;

(c)

Measures 13, 14, 23 and 30: 90 % guarantees of the Land of Thuringia;

(d)

Measure 15: a grant from the Land of Thuringia;

(e)

Measure 16: an equity loan from a state-owned bank;

(f)

Measure 21: a loan from a state-owned bank;

(g)

Measure 26: employment promotion grants;

(h)

Measure 27: measures for employee integration, fair attendance and advertising;

(i)

Measure 32: measures for research and development, employee integration, fair attendance and cost reduction.