Neschen AG

euro adhoc: Neschen AG
Capital measures
Neschen AG wins Bear Stearns International Limited for company recapitalisation

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21.12.2006

Neschen AG intends to place the majority of the authorised capital (total EUR 4,375 Mio.) as an increase in capital on the German stock market within the next few months. The shareholders will be able to exercise their legal subscription rights. The exact details of the planned transaction will be made public in the near future.

If not all the shares are subscribed, an investor group, comprising of the US investment bank Bear Stearns together with associated companies of Värde Partners, Inc. ("Värde"), will, as agree in the recapitalisation agreement signed on 21.12.06,  purchase up to a maximum of three million of the unsubscribed shares. In addition, it has been agreed that the investor group will acquire the loans of approx. EUR 65 Mio. from the German pool banks and replace this with a loan to the company of EUR 50 Mio. A significant portion of this loan difference will be assigned to Neschen as extraordinary income leading to an increase in the company’s equity

The executive board of Neschen AG believe that the 2006 end of year results will change significantly due to the debt waiver. The refinancing and the improvement in equity will give the company the foundation to ensure that it can direct all its attention and energy to customers, products and markets. In 2006 the consolidated turnover is expected to be approx. EUR 130 Mio. and the EBIT, excluding restructuring costs and one-time-effects, is expected to be at least EUR 5 Mio. This comes after an EBIT of EUR 4 Mio. in 2005 and of  EUR -1.9 Mio. in 2004.

Bear Stearns is the fifth largest US investment bank, specialising in financing companies that are being or have been restructured. Värde is a leading Alternative Asset Management company in USA and Europe, managing approx. USD 2.8 billion in assets.

Summing up, the board is pleased to announce that in addition to the operational restructuring, the overall restructuring, including the financial restructuring of the group, is completed. The executive board underline that the strategic partnership on the basis of the recapitalisation agreement with Bear Stearns and Värde, will ensure that the organisation can direct more attention towards customers, product innovation and markets. The board sees the improved financial status, created through the involvement of the investment group, as a foundation upon which the company can grow profitably in the coming years.

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ots Originaltext: Neschen AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Jan Marzinowski
Tel.: +49 (0)5722 207 153
E-Mail: j.marzinowski@neschen.de

Branche: Process Industries
ISIN:      DE0005021307
WKN:        502130
Index:    CDAX
Börsen:  Börse Berlin-Bremen / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Frankfurter Wertpapierbörse / official dealing/general
              standard
              Niedersächsische Börse zu Hannover / official dealing



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