Amitelo AG

AMITELO AG provides details of the Group's new structure as well as the announcement of a new investor

The  Supervisory  Board  and  Group    Management    Board    have     approved    the restructuring of AMITELO AG; a group of investors have made up  to 2.5  million US dollars in outside capital available

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companies/Restructuring Holding

Zurich (euro adhoc) - Zurich, 13th December 2007. AMITELO AG  decided during its  Supervisory  Board Meeting to dispose off all its subsidiaries bundled together to date in  Amitelo International Ceuta SL (AIC). The core business of MediaCard and Median  Telecom - the primary generators of sales - will be expanded and the  profitable   mobile wireless activities in Iceland commenced.

In future, AMITELO AG will focus primarily on the above named   competencies  and significantly modify  the  structure  of  the   company.  The  first  fundamental measure in this regard was undertaken at the Supervisory Board meeting with  the decision to transfer the shares in AIC  to  the  US  investor  Cimarron  Capital Ltd., New York. The Group's structure to date and its new one are   presented  on the company's homepage  The buyers have undertaken to pay up  to eight million euros within the next 36 months from the income of these  demerged business units (as an   "earn  out  agreement")  -  regardless  of  whether  this revenue is generated by the sale of parts of the business or from the  operative business itself.

With  this  step,  AMITELO  AG  has  not  only  divested  the  Group of    those subsidiaries belonging to AIC, at the same time  it  has   eliminated  the  risks linked to this arising from a commitment provided by one of  our  own  operative units. Furthermore this measure serves to  streamline  the  Group's  structures, through which the calls by investors for a higher degree  of  transparency   have been taken into account.

A further element of the agreement with the transferee of AIC is the ceding  of the shares in LVT AG ("AmiVois"), as the further development of this  technology for a softphone no longer fits into the Group's new alignment. The  transfer  of the LVT shares is a component of the earn  out  agreement  as  described  above. From the viewpoint of the Supervisory Board and the management  of  AMITELO   AG, an expected value adjustment requirement will result from this restructuring  of more than twelve million euros on the  goodwill  in the  balance  sheet.  As  a consequence of the restructuring measures mentioned above it is  also  necessary to revise the forecast profit for 2007 as provided to date. The one-off  effects will lead to a negative EBIT at an amount equivalent to  the  value  adjustment. The conclusive examination of the valuation of  the  company's  assets   and  the open debts are the responsibility of the statutory auditors in  the  course  of their audit of the annual financial statements.

The 2008 plans forecast turnover of approx. 60 million euros  with   an  expected EBIT of 1.5 million euros. In this regard it is essential to take  into  account that the start-up costs for the constructing and operating  a  GSM-1800  network ("Tender 1") in Iceland will lead to a negative impact on the  result  in  2008. Further details of this significant AMITELO AG project will be provided  shortly by the company.

As to Iceland newspaper reports in participating in the  tender  for a  GSM-900 network ("Tender 2")  AMITELO  AG  will  publish  a   statement  on  the  company website.

Against the background of the comprehensive restructuring of  AMITELO AG,  last week an investment agreement was signed with the US   investor  Genesis  Merchant Partners,  LP,  with  offices  in   Greenwich  Connecticut  and  New  York  City. Following an extensive due diligence of the company's  activities,  the  Genesis Group gave its commitment to taking a leading role in a loan consortium  for  an amount of up to 2.5 million US dollars. AMITELO AG's liquidity  basis has  been significantly strengthened by this.

In addition, further intensive discussions are being conducted at   present  with investors who intend to make external capital available to the company  for  the financing of the activities in the new structure of AMITELO AG.

"The restructuring of the Group and our focus on the  core  business areas  are the fruits of our labour over the last few months. It has become  crystal  clear to us that we have to part company with a range of activities  in  order  to  be able to continue operations in a slimmer and more focussed form.  In  future  we will only be active with our own companies  in  those  areas  where  we  have  a realistic opportunity of  having  a  direct  influence  on  their   success.  The discussions we have held with a range of professional investors  over  the  last weeks and months and ultimately the conclusion of  the  agreement  with  Genesis too have confirmed the view that the future corporate policy  of  a  sustainable "less is more" in terms of the  number  of  projects  that  can  be   implemented represents the path which the "New AMITELO"  will   stride.  This  new  structure will help all of our investors and partners  to  better  understand  the  future alignment of our company," as Christian Schild, the Supervisory  Board  Chairman and its delegate on the Group Management Board of AMITELO AG, explained.

"Our loan commitment is the result of intensive due diligence at AMITELO AG.  We are looking forward to working together over the years to come and hope  we  can make a contribution to the further development of  AMITELO  AG,"  as  Tim  Doede from Genesis Merchant Partners, LP, outlined.

AMITELO AG: AMITELO AG ( based in Zurich is a   technology  company  operating on an international level and specialising  in  fast-growing  telecommunications fields  including mobile  wireless  and  other  services    related    to    these activities. In this regard AMITELO AG pursues an aggressive growth   strategy  in which both organic and inorganic growth are closely linked  together,  making  a clear contribution to achieving the turnover and earnings targets of the Group.

Genesis Merchant Partners, LP Genesis Merchant Partners, LP is managed by  Sands  Brothers  Asset  Management, LLC. Genesis Merchant Partners, LP  seeks  to  provide  financing  solutions  to companies facing unique opportunities and in niche and under the radar   markets.


AMITELO AG Investor Relations

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ots Originaltext: Amitelo AG
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Branche: Telecommunications Equipment
ISIN:      CH0003307706
WKN:        A0F5YA
Börsen:  Börse Frankfurt / free trade/entry standard

Weitere Meldungen: Amitelo AG

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