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Share Issue/Capital Change • Aug 10, 2010

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Corporate | 10 August 2010 18:01

HCI Capital AG: Equity base strengthened sustainably by debt-to-equity swap

HCI Capital AG / Capital Increase

10.08.2010 18:01

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HCI Capital AG: Equity base strengthened sustainably by debt-to-equity swap

* Banks convert loans totalling around EUR 31.5 million into shares
* Release from contingent liabilities to follow shortly
* Positive cumulated earnings effect for the group of around EUR 12 million
for the first half year 2010

Hamburg, 10 August 2010 - HCI Capital AG, one of the leading issuing houses
for closed-end funds, has taken a further step today towards sustainably
strengthening the Group. As part of the implementation of the restructuring
agreement that the Company reached with its banks in February 2010, among
others HSH Nordbank is converting the receivables owed to them by the HCI
Group into equity. This will increase the Company's equity ratio in the
consolidated balance sheet to around 45%. The debt-to-equity swap will
produce a gain, so that the HCI Group also expects a positive consolidated
net result for the financial year 2010.

The Management Board of HCI Capital AG decided today, with the approval of
the Supervisory Board, to increase the Company's subscribed capital from
EUR 24.0 million to EUR 29.4 million from authorised capital, excluding
shareholders' subscription rights, by issuing 5,354,116 new no-par value
registered shares for a contribution in kind. HSH Nordbank and another bank
via a trustee subscribed for the new shares. In exchange, the banks are
providing a contribution in kind in the form of receivables owed to them by
the HCI Group totalling around EUR 31.5 million (according to German
accounting standard HGB). 'This capital increase gives a substantial boost
to the equity base of the HCI Group,' said Dr. Ralf Friedrichs, Chairman of
the Management Board of HCI Capital AG. 'At the same time, our banks are
emphasising their confidence in the potential of the Company.'

Equity ratio increases to around 45%
The reduction in liabilities and their conversion into equity is expected
to increases the equity in the consolidated balance sheet to around EUR 50
million and the equity ratio to around 45%. Once the conversion has been
completed and entered in the Register of Companies (Handelsregister), which
is due to take place until 20 August 2010, HSH Nordbank will hold 15.51% of
the shares in HCI Capital AG and the acting trustee 2.73%. The stakes held
by MPC Capital AG and the Döhle Group will then come to 33.36% and 17.96%
respectively for the same number of shares as before. The remaining free
float, also for the same number of shares as before, will then be 30.44%.

Release from contingent liabilities to be agreed soon
Furthermore, the HCI Group is close to obtaining a conclusive release from
its main contingent liabilities, which in February 2010 were made the
subject of a moratorium on any drawdowns until 30 September 2013.

Positive consolidated net result expected for 2010
The earnings performance of the Group in the financial year 2010 will also
greatly benefit from the financial restructuring of the HCI Group. The
costs of the release from liabilities totalling around EUR 11 million are
more than offset by a profit of around EUR 23 million from the
debt-to-equity swap based on the consolidated result as at 30 June 2010.
Against this background the HCI Group expects positive earnings effects for
the half year result of around EUR 12 million. Against this background the
HCI Group expects a positive consolidated net result after tax for the full
year 2010.

About HCI:
Established in 1985, the HCI Group creates closed-end funds and investments
with a capital guarantee in the areas of Transport and Logistics, Energy
and Commodities, Real Estate and Secondary Life Insurance. Since it was
established, the HCI Group has realised a total investment volume of some
EUR 14.9 billion with equity capital of approximately EUR 5.9 billion
invested in 511 issues (as of 31.03.2010). HCI currently has around 122,400
clients, making it one of Germany's leading independent issuing houses. HCI
Capital AG has been listed on the stock exchange since October
2005.

Contact:
HCI Capital AG
Dr. Olaf Streuer
Head of Corporate Communication / Business Development
Tel: +49 40 88 88 1 1100
olaf.streuer@hci-capital.de

10.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: HCI Capital AG
Burchardstraße 8
20095 Hamburg
Deutschland
Phone: +49 (0)40 88881-0
Fax: +49 (0)40 88881-199
E-mail: ir@hci-capital.de
Internet: www.hci-capital.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in München, Düsseldorf, Berlin, Stuttgart,
Hannover

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