UET United Electronic Technology AG

M&A Activity • Apr 11, 2007

News Details

Corporate | 11 April 2007 08:34

CFC Industriebeteiligungen acquires Elcon Systemtechnik GmbH

CFC Industriebeteiligungen GmbH & Co. KGaA / Miscellaneous

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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++ CFC Industriebeteiligungen acquires Elcon Systemtechnik GmbH

++ Communication-systems supplier with high profitability upside

The private equity company CFC Industriebeteiligungen GmbH & Co. KGaA today
announces the complete takeover of all shares of Elcon Systemtechnik GmbH,
Hartmannsdorf, from the actual shareholder. Going along with this
transaction, CFC is planning to take over most of outstanding creditors’
liabilities at a reasonable discount.

Founded in 1990, Elcon is one of the leading suppliers of telecommunication
systems and, besides others manufactures hard- and software for broadband
telecommunication networks. Elcon is going to focus even more on the
development of aligned systems for the optimisation of networks in the
future. Thereby, the company will be perfectly positioned as complementary
supplier.

The company headquartered in Saxony generated in the last fiscal year with
around 160 employees a turnover of approximately € 27 mn.

Although the purchase agreement contains closing conditions in favour of
CFC, the management is convinced to be able to conclude the closing within
a couple of weeks.

Marcus Linnepe, CEO of CFC, is very pleased about the transaction: 'We are
happy for being able to find a highly promising investment with Elcon.
Together with the new management around the sector expert Werner Neubauer
we are convinced to be in the position of raising the full earnings
potential of Elcon in the foreseeable future.'

About CFC Industriebeteiligungen GmbH & Co. KGaA

CFC (www.cfc.eu.com) is a private equity company that acquires and
restructures enterprises in crises situations. Investments are only
conducted, if the companies – despite the crises – are disposing of at
least some sound core business activities. The central decision criteria
pro or contra a takeover is the so called '100-days plan': Before an
investment is done it has to be foreseeable that three months after the
acquisition through CFC an adequate set of activities can be realized to
solve the crises and set the basis for long-term profitable
growth.

CFC Industriebeteiligungen GmbH & Co. KGaA
Dr. Oliver Serg
Phone: + 49 (0)231 95 25 174
E-mail: os@cfc.eu.com

DGAP 11.04.2007