Edel SE & Co. KGaA

Legal Proceedings Report • Jul 13, 2000

News Details

Ad-hoc | 13 July 2000 18:50

Ad hoc-Service: edel music AG englisch

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— – News agency destroys shareholder value through unfounded reporting – Linking edel music to the Neuer Markt “doom list” is absurd The German news agency, vwd, acted unprofessionally and erroneously when it linked edel music AG to the “doom lists” currently circulating in the markets. The “doom list” trend was triggered by a PricewaterhouseCoopers research paper on future liquidity problems faced by certain companies listed on the Neuer Markt. However, PwC never named edel music in the context of this research. Michael Haentjes, edel’s CEO, commented: “Such unresearched reporting is unprofessional and irresponsible in that it destroys shareholder value. Our good financials prove just how erroneous and untenable the alleged link between edel and the “doom list” is. Our revenues will increase to DM 1 billion this year compared to DM 451 million in the previous financial year. Our 1999 cash flow (cash flow is internationally recognized to be the key ratio for gauging a company’s financing capability) amounted to more than DM 10 million at year-end. Our cash position is approx. DM 54.7 million, providing liquidity far in excess of our operational needs. Our 2000 operating result will rise to more than DM 90 million. Our responsibility to our shareholders, employees and business partners dictates that we defend our company against such erroneous reporting which is potentially detrimental to our business. Unless vwd puts forward a correction voluntarily, edel music AG reserves the right to take legal action against the news agency.” The Managing Board Hamburg, July 12, 2000 Ende der Mitteilung