Do you know if a German Federal President has the right to pardon convict and if so, is there a recent example?

Yes, the President has a right to pardon. Two of the remaining terrorists should even be pardoned by the pressure of the media and of the population and of human rights organizations. Our previous president, Roman Herzog, however, made ​​no use of it and the two terrorists still sitting in prison. Many prisoners of the GDR of Richard were pardoned by Weiszäcker because they were wrongly proven in prison. Many GDR citizens had tried to escape were pardoned after reunification !