GfK Gruppe

euro adhoc: GfK AG
Legal Dispute between GfK and UBM settled out-of-court

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Ad-hoc release:

Legal Dispute between GfK and UBM settled out-of-court

- Estimated positive EPS effect of approximately EUR 0.30 - No effect on adjusted operating income of the GfK Group - Preliminary state of consolidation indicates sales and earnings at upper end of GfK´s guidance

In May 2005, GfK acquired the NOP World, one of the leading global market research companies, from its former UK parent UBM. Following completion of the acquisition of NOP World, UBM asserted a claim against GfK to discharge certain balances owed by the NOP World companies to UBM pre completion. In August 2006, UBM filed a court action against GfK AG in London. GfK defended this claim responding that the claim had no merits in the amount claimed by UBM. The dispute was already mentioned in GfK´s 2006 annual report.

Today GfK and UBM discontinued the court proceedings in the form of an out of court settlement. The result of the settlement with UBM is significantly below the amount claimed by UBM and quite in line with most recent management expectations.

According to the final settlement agreement, GfK AG will pay to UBM approximately EUR 7 million plus interest and UBM´s legal cost which will result in a total settlement payment of approximately EUR 10 million. In its 2006 annual report, GfK carried a liability to UBM in the amount of approximately EUR 20 million. The positive effect of the settlement booked as other operating income will be reflected in the highlighted items and thus not impact GfK´s adjusted operating income, its key operational performance measure.

The total amount of highlighted items also includes Purchase Price Allocation (PPA) amortisation and impairments. The current state of preparation of the group financial statements indicates a PPA impairment of approximately EUR 10 million above the level of 2006. The combined effect of the settlement with UBM and the expected additional PPA impairment will likely off-set each other and should therefore only have a negligible EBIT impact.

On an after tax basis the above events will lead to an EPS increase of approximately EUR 0.30.

The current state of preparation of the group financial statements of the financial year of 2007 indicates sales and earnings at the upper end of GfK´s guidance.

Details on the GfK group´s operating results will be released as scheduled on 28. February 2008.

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ots Originaltext: GfK Gruppe
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Further inquiry note:
Bernhard Wolf
Tel.: +49 (0)911 395-2012

Branche: Consultancy Services
ISIN:      DE0005875306
WKN:        587530
Index:    SDAX
Börsen:  Börse Frankfurt / regulated dealing/prime standard

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