Funkwerk AG sells Avionics GmbH subsidiary

Rigorous focusing strategy continues

Kölleda, (PresseBox) - .

- Preliminary annual figures for 2011: Consolidated sales marginally below prior-year result; earnings in negative single-digit millions

Funkwerk AG today sold all shares in Funkwerk Avionics GmbH, Waal; the subsidiary was taken over by investment and management company DREI Unternehmensbeteiligung GmbH, Lübbecke. The purchase price ranges in the significantly low single-digit millions.

The contract rigorously continues the strategic reorientation initiated by Funkwerk in 2011 to focus on the company's core sectors. The aim is to concentrate primarily on growth fields with strong margins shedding any and all peripheral sectors in order to use the company's resources more efficiently. Key transactions selling Alpha Meß-Steuer-Regeltechnik GmbH and the Enterprise Communication segment were finalised in 2011 adding stability to the group's financial situation. This further improved with the recent sale of Funkwerk Avionics GmbH.

Funkwerk Avionics GmbH operates in the aerospace industry. Its product range includes radio equipment, emergency transmitters, navigation technology, transponders, and displays for small and light aircraft. The company, which employed around 24 people generating sales of around EUR 3.4m along with earnings before interest and taxes of just under EUR 0.2m in 2011, is no longer part of the core business of the group's Automotive Communication segment. The latter had been restructured as part of the group's focusing strategy to concentrate exclusively on OEM supply for automobile and lorry manufacturers.

Preliminary 2011 result

As previously announced, the company's reorientation measures will make themselves felt in its 2011 annual financial statements. Adjusted for the sale of the companies including the disposal of Funkwerk Avionics, consolidated sales of the continued operations based on preliminary calculations amount to around EUR 164m (2010 adjusted: EUR 168m). The adjusted operating result, which was further affected by significant preliminary development and investment costs, totals around EUR -3.5m to range as expected in the negative single-digit millions (2010: EUR -1.7m). The operating EBITDA is estimated at around EUR 4.5m (2010: EUR 5.4m). The extensive reorientation measures also led to restructuring and impairment costs relating to intangible assets totalling around EUR 10m. Accordingly, earnings before interest, taxes and the positive transaction effects are expected to add up to around EUR -13.5m (2010: EUR -14.9m).

Through consistent restructuring and the related expenses, Funkwerk has set the course for the future and predicts growth no later than from 2013.

The final 2011 annual financial statements will be published on 29 March 2012.

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