euro adhoc: ESCADA AG
Capital measures
ESCADA AG announces major financial and personnel decisions

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Company Information


Munich, June 24, 2008 - The Board of Management and Supervisory Board of ESCADA AG announced several major financial and personnel decisions today. The manufacturer of luxury women´s fashions has agreed that the Hamburg-based Herz business families Wolfgang and Michael Herz will acquire a significant minority interest in the company.

The decision has been taken for a cash capital increase of around 10% (tranche 1) of the capital stock. This portion of the capital increase will be subscribed in full by two companies of the business families Wolfgang and Michael Herz, at an issue price of 14.00 Euro per share and at the exclusion of the other shareholders´ preemptive rights for this portion of the capital increase.

Another cash capital increase (tranche 2) also at an issue price of 14.00 Euro per share will follow tranche 1. The new shares from tranche 2 will be offered to existing shareholders for subscription. The subscription period is to start immediately after registration in the Commercial Register of tranche 1 of the capital increase and will last for two weeks. The subscription ratio is 2 for 19; in other words, 2 new shares can be subscribed for every 19 shares of ESCADA stock that the stockholder already holds. There are no plans for subscription rights to be traded.

Over and above the exercise of all subscription rights which they will hold, the companies of the business families Wolfgang and Michael Herz have already pledged irrevocably to subscribe all other shares of tranche 2 whose subscription rights have not been exercised in the allocated exercise period.

The capital measures under tranche 1 and 2 are expected to generate a net cash-in of 50 million Euro after transaction costs. The number of ESCADA AG shares will increase from approximately 17.19 million shares to approximately 20.90 million shares as a result of the capital increase.

Additionally, ESCADA has agreed with one of the firm´s bank on an 90 million Euro credit facility with a term until December 31, 2009 that will replace the existing 90 million Euro syndicated credit facility, which is to lapse at the end of 2008.

The Board of Management members Mr. Jean-Marc Loubier and Ms. Beate Rapp are leaving the Board of Management of ESCADA AG by mutual consent, effective June 30, 2008. The Supervisory Board has appointed Dr. Bruno Sälzer and Dr. Werner Lackas as members of the Board of Management effective as of July 1, 2008. Dr. Sälzer has additionally been named the new CEO. Mr. Markus Schürholz will remain as CFO.

As a further consequence of the planned changes in ownership, Messrs. Wolfgang Herz and Prof. Dr. Reinhard Pöllath, a Munich attorney, will join the Supervisory Board of ESCADA AG. One seat on the Supervisory Board is currently vacant, and Dr. Martin Kuhn today resigned his post on the Supervisory Board with immediate effect. Prof. Dr. Pöllath assumes the Chair of the Supervisory Board from Claus Mingers, who will remain a member of the Supervisory Board.

Important Notification: This publication is neither an offer to sell nor an invitation to buy securities of any kind. The information contained in these materials is for information purposes only and is not for publication or distribution in the United States. These materials are not an offer of securities for sale in the United States. The securities to which these materials relate have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will be no public offering of the securities in the United States.

This document is only distributed to and aimed at (i) persons outside the United Kingdom or (ii) professional investors as per Article 19(5) of the Financial Services and Markets Act 2000 and the Financial Promotion Order 2005 (the "Order"), or (iii) high net wealth companies and other high net wealth persons as per Article 49(2)(a) to (d) of the Order (these persons jointly being termed "qualified persons"). All of the securities named herein are available only to qualified persons and any invitation, offer or agreement to subscribe to, buy or otherwise acquire them is made only to qualified persons. Persons who are not qualified persons should on no account act with regard to or in reliance on this information or its contents.

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ots Originaltext: ESCADA AG
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Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336

Branche: Clothing
ISIN:      DE0005692107
WKN:        569210
Index:    SDAX, CDAX, Classic All Share, Prime All Share
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / free trade
              Börse Hamburg / free trade
              Börse Stuttgart / free trade
              Börse Düsseldorf / free trade
              Börse München / regulated dealing

Weitere Meldungen: ESCADA AG

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