Masterflex SE — Major Shareholding Notification 2010

Nov 10, 2010

News Details

Ad-hoc | 10 November 2010 12:53

Masterflex AG: Plan to sell Mobility group resolved

Masterflex AG / Key word(s): Miscellaneous

10.11.2010 12:53

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 disclosure in line with section 15 WpHG

Masterflex AG: Plan to sell Mobility group resolved

Gelsenkirchen, 10 November 2010. At its meeting today, the Executive Board
of Masterflex AG decided to sell the Mobility group, the last remaining
non-core business activity of the Masterflex Group.

The sale of the Mobility group will complete the restructuring of the Group
initiated in 2008 as part of the Group's long-term strategy to focus its
activities on the core business High-Tech Hose Systems and to sell off
activities not related to this. The Group is now actively seeking a buyer
for the Mobility group and is already holding initial discussions for this
purpose.

Write-downs will be incurred as a result of the reclassification of the
business unit as 'held for sale'. For instance, a possible deconsolidation
loss of up to EUR 3.5 million is expected, equivalent to roughly half of
the loans extended to the companies in the Mobility unit and the work
performed and still capitalised at Masterflex AG of approximately EUR 0.5
million.

These write-downs will not affect the liquidity situation of the Masterflex
Group, but equity will decrease by the depreciation amounts specified. On
the basis of commercial prudence, a negative impact on the balance sheet of
Masterflex AG - adjusted and restructured following the parallel
restructuring of the balance sheet equity and liabilities - should
therefore be largely ruled out in future due to past effects.

Explanatory text:

The high growth and diversification strategy of years following the IPO led
to a high level of debt and considerable distortions of the balance sheet.
In the 2008 financial year, the absolutely essential restructuring measures
to refocus Masterflex AG's activities on the core business High-Tech Hose
Systems were begun, as the debt burden in particular had by then grown to
an overwhelming extent, even threatening the company's survival. In all
years, hose business was a reliable and by far the biggest earnings driver
in the Masterflex Group, consistently generating stable cash flows and
attractive margins. Furthermore, the name Masterflex has stood for
outstanding expertise in the entire High-Tech Hose Systems market for over
twenty years.

With the deconsolidation of the Mobility unit, which has no synergies with
the core business and whose performance has fallen significantly short of
the expectations of the Executive Board of Masterflex AG, the restructuring
initiated in 2008 will be completed by the end of the year.

The Executive Board will press ahead quickly with the sale process and will
actively examine separate sales of individual Mobility equity investments
and/or cooperations with partners as well as a complete sale of the Group.
A current absence of sufficient market assessments and a lack of purchase
offers make it difficult to judge the possible balance-sheet effects.
Because the Mobility group is an internally established group of companies,
no goodwill is capitalised here and the question of a revaluation therefore
does not arise. However, the establishment and expansion of the business
was pre-financed with loans in the past. In total, there are receivables of
around EUR 5.0 million from various subsidiaries of the Mobility group. In
addition, development expenses of roughly EUR 0.5 million were capitalised.
In addition to inventories (around EUR 2.0 million), these are also
countered by patents and a business model with high potential for
expansion.

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

D-45891 Gelsenkirchen, ir@masterflex.de, tel. +49 209 97077 12

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This report contains forward-looking statements regarding future
developments which are based on current assessments and planning of the
management. Such forward-looking statements are characterised by words such
as 'expect', 'would', 'up to', 'possible', 'anticipate' and similar
expressions. These statements are subject to risks and uncertainties.
Should one of these factors of uncertainty or other imponderables occur or
should the assumptions underlying the statements prove to be incorrect, the
actual developments could differ significantly from the possible
developments specified or implied in these statements. The company does not
intend to and assumes no obligation to update forward-looking statements on
an ongoing basis, as these statements are based exclusively on the
circumstances at the date of their publication.

10.11.2010 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language: English
Company: Masterflex AG
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Deutschland
Phone: +49 (0)209 97077-12
Fax: +49 (0)209 97077-20
E-mail: ir@masterflex.de
Internet: www.masterflex.de
ISIN: DE0005492938
WKN: 549 293
Indices: Prime all share
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Berlin, Düsseldorf, Stuttgart

End of Announcement DGAP News-Service

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