CEWE Stiftung & Co. KGaA — M&A Activity 2005

Apr 12, 2005

News Details

Ad-hoc | 12 April 2005 14:30

CeWe Color Holding AG: CeWe Color founds a joint venture in the Ukraine

Ad hoc announcement §15 WpHG Joint venture in the Ukraine CeWe Color Holding AG: CeWe Color founds a joint venture in the Ukraine Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— CeWe Color founds a joint venture in the Ukraine Oldenburg, 12. April 2005 – CeWe Color Holding AG (SDAX, ISIN DE 0005403901), in collaboration with Fotolux, is founding a company in the form of a joint venture in the Ukraine. The highly-technological photofinishing plant will commence with serving the Ukrainian market at the end of 2005. Today the CeWe Color Group has 22 production plants in 14 European countries. The market in Central Eastern Europe is one of the major sales generators for the group. More and more people there have a higher income at their disposal, which means that they are travelling more and are taking photos of all of the new impressions gained. Fotolux, with more than 20 photo retail stores and a number of minilabs, is already operating in the Ukraine, where 56 million inhabitants place orders at photofinishing companies for approx. 1,2 billion colour prints every year. Together with Fotolux, CeWe Color will have erected a modern, effective photofinishing plant by the end of the year. Insurance pays damages for the fire in Lille It was with great consternation that Cewe Color reported in January that the production plant in Lille (northern France), which operated for both the French and the Belgian markets, had completely burnt down. CeWe Color managed to transfer all of the orders to the neighbouring French plants in Paris and Rennes and to the plant in Mönchengladbach (Germany) within a matter of only 24 hours after the fire. A business interruption insurance policy will cover the resulting additional transport costs incurred. Considerable investments in extending capacities and in organisational measures, particularly in the two laboratories in Paris and in Rennes, are necessary in order to be able to process the Lille orders in the neighbouring plants in good time. After lengthy negotiations with the insurance company, CeWe Color is to receive damages for the loss of machinery and supplies to the amount of Euro 8.3 million. Payment of the insurance sum will not have an effect on earnings in France. The Board of Management is thus maintaining its forecast for the fiscal year of 2005, published in the middle of March 2005. After taking a close look at developments on the market and the development of costs, the management of CeWe Color is considering not re-establishing the production plant in Lille, where the premises were being rented. For this reason a severance scheme for the 60 employees is currently being negotiated. Should you have any queries, please contact: CeWe Color Holding AG, Hella Meyer, Tel.: 0441 / 404 – 400 or 0171 / 34 50 530, Fax: 0441 / 404-400, email: hella.meyer@cewecolor.de , Internet: http://www.cewecolor.com CeWe Color Holding AG Meerweg 30 – 32 26133 Oldenburg Deutschland ISIN: DE0005403901 (SDAX) WKN: 540390 Listed: Geregelter Markt in Berlin-Bremen und Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München und Stuttgart End of ad hoc announcement (c)DGAP 12.04.2005 121430 Apr 05