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Funkwerk AG sells Funkwerk Enterprise Communications GmbH

Essential Cornerstone of Realignment

(PresseBox) (Kölleda/Thüringen, ) Funkwerk AG (ISIN DE0005753149) sells Funkwerk Enterprise Communications GmbH and thereby its enterprise communication (EC) sector to Teldat group from Madrid, Spain. The signing now marks a further cornerstone of the current realignment of Funkwerk AG to concentrate on the three core sectors traffic & control communication, security communication and automotive communication and further stabilises the group's financial basis.

The SPA, which was signed today, comprises all shares in Funkwerk Enterprise Communications GmbH, Nuremberg, and in its subsidiaries Funkwerk IP-Appliances GmbH (Nuremberg), Funkwerk Aphona Communications GmbH (Vienna, Austria), Funkwerk Enterprise Communications France S.A.S. (Gradignan Cedex, France) and Funkwerk Enterprise Communications Italia S.R.L. (Milano, Italy). The inactive subsidiaries FunkTech GmbH (Nuremberg) und Funkwerk Enterprise Communications Iberia S.L. (San Sebastian de los Reyes/Madrid, Spain) as well as the majority holding of Funkwerk Enterprise Communications GmbH in Funkwerk ES Iberia S.L. (Majadahonda/Madrid, Spain) form not part of the transaction. The SPA includes an agreed enterprise value of about EUR11 m, out of which, after consideration of interest-bearing liabilities, a purchase price and hence a net liquidity inflow of approximately EUR8m is expected for Funkwerk AG.The final amount depends on an assessment as of a qualifying date, which has not been completed. Closing is subject to customary conditions precedent and the consent of Funkwerk AG's bank consortium. Funkwerk's board of directors assumes that the conditions precedent will be fulfilled and the consent of the consortium banks be granted during the current financial year 2011.

Funkwerk Enterprise Communications GmbH is specialising in telecommunication systems and solutions for data security. In the financial year 2010, the group including the subsidiaries subject to the transaction reached a turnover of approximately EUR28 m and a positive EBIT after intercompany recharges of approximately EUR0.54 m. In the current business year 2011 until 30 September, the enterprise communication sector generated an equilibrated or even slightly positive EBIT and a consolidated turnover of approximately EUR21 m. The average number of employees was 140. Teldat group is a leading European technology holding company specializing in the manufacture and distribution of IP solutions for the commercial sector, and conducts business in 35 countries. In the financial year 2010, the holding company had approximately 600 employees and achieved a turnover of about EUR45 m.