Masterflex SE — Capital/Financing Update 2010

Jun 28, 2010

News Details

Ad-hoc | 28 June 2010 11:59

Masterflex AG: Financial Position

Masterflex AG / Capital Reorganisation/Miscellaneous

28.06.2010 11:59

Dissemination 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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Ad hoc announcement as specified in § 15 of the WpHG (Securities Trading
Act)

Masterflex AG: Financial position

Gelsenkirchen, 28 June 2010. Masterflex AG and its financing partners have
agreed on an arrangement for restructuring the Group's financing over the
long term. Implementation is subject to the customary Board and bank
syndicate approvals and involves a prolongation of the current financing
agreements for implementing this arrangement until 30 December 2010. The
main components are:

• Significant reduction of the current number of lenders by seven banks,
  to a future total of six banks

• Repayment of the seven departing banks with a current claim volume of
  around EUR 25 million through the end of 2010, involving a waiver of
  around EUR 10 million in claims which will be recognised under profit
  and loss.

• Provision of structured, long-term (5-year) external financing for the
  Group by the remaining banks (core banks) in exchange for guarantees
  concerning the following key conditions:

  1. Granting of a state guarantee for a portion of the restructured
     loans (the application process is underway)

  2. Successful injection of new liquidity and steps to strengthen
     equity

The company will also pass a major milestone in terms of restructuring its
operations by reporting the Advanced Material Design segment (surface
technology) as a 'discontinued business unit' effective 30 June 2010, as
the Executive Board expects to dispose of this segment before the end of
this year. This will entail a deconsolidation expense of approximately EUR
5 million and will affect both Masterflex AG's consolidated profit and loss
and its consolidated equity, as already noted in the Annual Report.
Disposal of the loss-making surface technology unit represents another
major step by Masterflex AG towards focusing on its successful High-Tech
Hose Systems core business.

The planned comprehensive financial restructuring is based on several
interrelated components. Given the highly complex, reciprocal conditions
and the large number of banks involved, the Executive Board notes that
negotiations are still ongoing and that the company's future development
therefore is still fraught with uncertainties.

With respect to steps to strengthen equity, several anchor investors have
already indicated that they are prepared to take equity stakes in
Masterflex AG when the financing arrangement is implemented and have signed
letters of intent to that effect to guarantee the successful execution of a
capital measure.

The company will discuss the structure of the planned capital measure in
the invitation to the general shareholders' meeting on 17 August 2010.

Successful implementation of this extensive financing arrangement will
ensure the long-term restructuring of Group financing announced by the
Executive Board and will contribute to further substantial de-leveraging of
the Group.

Further information: Masterflex AG, Investor Relations, Willy-Brandt-Allee
300,

D-45891 Gelsenkirchen, stephanie.kniep@masterflex.de, Tel. +49 209 97077 44

About the company: Masterflex AG specialises in the worldwide development
and manufacture of sophisticated connection and hose systems using
innovative high-tech plastics. The company has accumulated a great deal of
materials and processing expertise since it was founded in 1987. The
company produces and sells high-tech hose systems at various locations in
Europe and America and currently still has operations in the Mobility and
Advanced Material Design segments as well.

28.06.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Masterflex AG
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Deutschland
Phone: +49 (0)2099 70 77-44
Fax: +49 (0)2099 70 77-20
E-mail: stephanie.kniep@masterflex.de
Internet: www.masterflex.de
ISIN: DE0005492938
WKN: 549 293
Indices: Prime all share
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

End of News DGAP News-Service

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