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RNS - Borussia Dortmund intends to continue its cooperation with SPORTFIVE and to significantly decrease its Group liabilities with effect as of June 30th, 2008

Company: Borussia Dortmund GmbH & Co. KGaA Date: 2008-06-12 Language: English Register to download

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 News Details

Ad-hoc | 12 June 2008 16:19

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Borussia Dortmund intends to continue its cooperation with SPORTFIVE and to significantly decrease its Group liabilities with effect as of June 30th, 2008

**Borussia Dortmund GmbH & Co. KGaA / Alliance/Strategic Company Decision**

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Borussia Dortmund GmbH & Co. KGaA ('Borussia Dortmund') today received an
offer of SPORTFIVE GmbH & Co. KG, Hamburg ('SPORTFIVE') to close a contract
regarding a long-term prolongation of the existing marketing cooperation.

The offer of SPORTFIVE, which can be accepted by Borussia Dortmund until
June 20th, 2008, by latest, provides for a prolongation of the existing
cooperation until June 30th, 2020 under new economic parameters. SPORTFIVE
shall be entitled to carry out the marketing of certain sponsoring and
media rights on behalf of Borussia Dortmund and to earn a commission or
respectively a participation in such revenues. Borussia Dortmund shall be
entitled to receive a remuneration in a total amount of € 50.0 Mio from
SPORTFIVE in return. Borussia Dortmund and SPORTFIVE thus seek to continue
their - to date - established and faithful marketing alliance.

Moreover, Borussia Dortmund received a credit approval of a German real
estate bank. It is intended to close a credit agreement of € 20.0 Mio. for
a fixed term of five years and backed by normal banking securities.

In case of closing of the afore mentioned agreements, the proceeds
resulting therefrom - which are expected to be paid still in June 2008 –
shall solely be used by Borussia Dortmund to discharge the Credit Agreement
dated June 6th, 2006, with Morgan Stanley International Bank Limited,
London ('Morgan Stanley') ahead of schedule (primary term until 2021), but
still in Borussia’s fiscal year 2007/2008 (end of fiscal year: June 30th,
2008), and thus to repay the complete loan debt with effect as of June
30th, 2008. As a result of, and taking the regular repayment and the
voluntary prepayment in the current fiscal year into consideration, a
decrease of Group liabilities by € 59.8 Mio. from € 128.9 Mio. to € 69.1
Mio. would be achieved with effect as of from June 30th, 2008.

A further effect of the discharge of the Morgan Stanley loan would be -
among others - a significant improvement of the sporting competitiveness in
the next years. Borussia Dortmund would be able to realise a considerable
enhancement of first team in the fiscal year 2008/2009 and would be even
able to finance personnel expenses of the first team in a minimum amount of
€ 36.0 Mio p.a. from the operative business and in a sustainable way, e. g.
without any new indebtedness, in the next years.

The management therefore intends to use the aforementioned business
opportunities and to take the necessary steps.

Dortmund, June 12th, 2008

Borussia Dortmund GmbH & Co. KGaA
Borussia Dortmund Geschäftsführungs-GmbH

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Information and Explaination of the Issuer to this News:

This announcement contains forward-looking statements that reflect
management's current views with respect to future events. The words
'intend', 'may', 'shall', 'should,' 'plan', 'would' and similar expressions
identify forward-looking statements. Such statements are subject to risks
and uncertainties. If any of these or other risks and uncertainties occur,
or if the assumptions underlying any of these statements prove incorrect,
then actual results may be materially different from those expressed or
implied by such statements. We do not intend or assume any obligation to
update any forward-looking statement, which speaks only as of the date on
which it is made.
12.06.2008  Financial News transmitted by DGAP
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Language:     English
Issuer:       Borussia Dortmund GmbH & Co. KGaA
              Rheinlanddamm 207 - 209
              44139 Dortmund
              Deutschland
Phone:        0231/ 90 20 - 0
Fax:          0231/ 90 20 - 912
E-mail:       info@bvb.de
Internet:     www.bvb.de
ISIN:         DE0005493092
WKN:          549309
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Stuttgart, München, Hamburg,
              Düsseldorf
 
End of News                                     DGAP News-Service
 
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