- Market position in information technology for railway companies consolidated at international level - Increase in product range and access to new international customer groups - Additional sales volume of around 40 mill. Euro Kölleda, 11 January 2007. Funkwerk AG (ISIN: DE 0005753149), the specialist in professional communication systems, is consolidating its market position in information technology for railway companies by taking over the "Information Technologies" division of Vossloh AG. "Not only will this increase our market shares in Europe; as a supplier we will also be able to reach a critical mass in many product areas which will set us off even more distinctly from the competition," stated Funkwerk Chairman of the Board, Dr. Hans Grundner. Strategically, Funkwerk will use this acquisition to increase its product range in the Traffic & Control Communication segment and gain access to new customer groups in Europe, specifically in Scandinavia and Great Britain. The contract for the acquisition of Vossloh Information Technologies, which consolidates the activities of Vossloh AG in the area of information systems, was signed yesterday. The division will be acquired free from debt for a provisional purchase price of 8 mill. Euro. The purchase price is subject to adjustment depending on the net working capital. The deal is contingent on the approval of the Supervisory Board of Vossloh AG and the Federal Cartel Office. Funkwerk assumes active role in market consolidation The acquisition of Vossloh Information Technologies (VIT) will provide the Thuringian-based technology group with a sales volume of around 40 mill. Euro. In the consolidating market for information technology for transport companies in Europe, Funkwerk will thus assume an active role and be able to improve its competitive situation. The VIT segments "Planning and Simulation", "Operations Control Systems" and "Signalling Technology" will further increase and complement the current service offering of Funkwerk without overlaps. Funkwerk will thus gain new know-how in the development of software for the resource planning, the management systems and the signal technology of transport companies at international level, while also rounding off its system competence in operations control technology. Since VIT addresses the same clientele as Funkwerk, the existing customer base will increase by new international business relations. "In the medium term, we expect to see signicant synergy effects here in sales, development and production," announced Dr. Grundner. In passenger information systems for local and long-distance rail transport, Funkwerk will achieve a considerable consolidation of its market position at European level, a crucial advantage in future competition. Dr. Grundner: "Up to now, the market has been heavily fragmented here. Due to the increasing networking, however, customers seek a strong partner with a wide range of services and a high degree of system competence, who can provide everything as a one-stop solution, from the conceptual design right through to the maintenance. We will in future be in an even better position to demonstrate this and are confident it will benefit us in tenders at both national and international level." The individual operative subsidiaries of VIT in Germany, Great Britain, Sweden, Poland and India are to be integrated into the Traffic & Control Communication segment of Funkwerk. "Since we will start with an identical technological platform, we do not foresee any major obstacles for a successful integration," declared the Funkwerk Chairman. "The incorporation into existing Funkwerk structures will enable us to rationalise many of our processes. Thus, a large part of our recent investment will be refinanced in the medium-term through cost savings." Additional earnings potentials through integration into Funkwerk group In the medium term, Dr. Grundner also believes further potential to come from the possibility of complementing the product range of Funkwerk. The VIT companies enjoy a good reputation in the sector, with excellent references. This, according to the Funkwerk Chairman, is clearly evident in the basic efficiency of the segments acquired. "It is vital, of course, that we rigorously continue to intensify this focus of Vossloh and concentrate on viable products and profitable projects. Contrary to previously, the acquired company will now form part of the core competences of a transport technology group and no longer be a marginal business. We want to invest specifically in these areas and hope that their integration into the Funkwerk group will also stimulate the motivation of our employees. We should then be able not only to restore our old earnings power, but in future also to exceed it," said Dr. Grundner confidently. Further information on Funkwerk AG: Based in Kölleda near Erfurt, Funkwerk AG develops, produces and markets professional communication systems used in vehicles, transport and other companies and institutions. With its three segments Traffic & Control Communication (communication, management and information systems for transport and logistics companies), Automotive Communication (communication equipment for vehicles) and Enterprise Communication (personal security, messaging systems and access solutions for companies and institutions), Funkwerk occupies a strategically excellent position in future markets. With over 1,200 employees, the Thuringian technology group recently generated sales of around 250 mill. Euro. For further information contact Funkwerk AG rw konzept GmbH Im Funkwerk 5 Emil-Riedel-Straße 18 99625 Kölleda/Thuringia 80538 Munich Germany Germany Katrin Schwarz Sebastian Brunner Investor Relations Tel: 0 89/13 95 96 -33 Telephone: 0 36 35/6 00 -3 35 Fax: 0 89/13 95 96 -34 Fax: 0 36 35/6 00 -3 99 Mobile: 01 75/5 60 46 73 [email protected] [email protected] Disclaimer "Diese Pressemitteilung sowie die darin enthaltenen Informationen dürfen nicht in die Vereinigten Staaten von Amerika (USA) gebracht oder übertragen werden oder an US-amerikanische Personen (einschließlich juristischer Personen) sowie an Publikationen mit einer allgemeinen Verbreitung in den USA verteilt oder übertragen werden. Jede Verletzung dieser Beschränkung kann einen Verstoß gegen US-amerikanische wertpapierrechtliche Vorschriften begründen. Aktien der Funkwerk Aktiengesellschaft werden in den USA nicht zum Kauf angeboten. Diese Pressemitteilung ist kein Angebot zum Kauf oder zur Zeichnung von Aktien." 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This document does not constitute an offer or invitation to subscribe for or purchase any securities in addition, the securities of Funkwerk AG have not been registered under the United States securities laws and may not be offered, sold or delivered within the United States or to U.S. Persons absent from registration under or an applicable exemption from the registration requirements of the United States securities law." --- End of Message --- WKN: 575314; ISIN: DE0005753149; Index: HDAX, MIDCAP, CDAX, Prime All Share, TECH All Share; Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin Bremen, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover;