Jelmoli Holding AG acquires 100% of the Eschenmoser Discount AG shares with retrospective effect per January 1, 2006. The planned merger with Fust will primarily strengthen the Jelmoli Group's multimedia business in Zurich, Berne, Basel and St. Gall. Both Fust and Eschenmoser are positioned as specialized discounters, with three decisive factors over competitors: a wide and up-to-date offering, highly competent sales staff, and comprehensive service. Both companies follow the same systematic pricing strategy - guaranteed lowest price for the same product quality - and optimally complement each other.

The parties have agreed not to reveal the transaction price.

Fust benefits from this acquisition in various ways: on the one hand from Eschenmoser's stronger alignment to the photography/video sector and greater purchasing know-how in this area. On the other hand, Eschenmoser is also a market leader in high-end audio and loudspeaker systems, a competence that is to be expanded throughout the Fust store chain. Eschenmoser net turnover (after VAT) for 2005 totalled around CHF 60 million, while that of Fust was around CHF 780 million.

The Eschenmoser acquisition also brings Jelmoli Holding Ltd real estate assets comprising well-located city-centre properties in Zurich, Berne, Basel and St. Gall.

Thanks to the merger with Fust, nearly all the approximately 100 Eschenmoser employees will retain their jobs on a long-term basis. Only about a dozen Eschenmoser administration jobs in Zurich will be successively discontinued, and the employees affected will be offered appropriate positions within Fust or the Jelmoli Group as far as possible. Active assistance will also be provided in job seeking. Although no hardship cases are expected, an employee benefit trust is available as with other acquisitions recently.

Contact persons Jelmoli:

Media: Dr. Daniel Gfeller,Secretary General Phone +41 (0)44 220 42 29 Fax +41 (0)44 220 40 10 Dr. Erich Bohli, CEO Fust AG Phone +41 (0)71 955 55 60 Fax +41 (0)71 955 55 55 Analysts: Gustav Stenbolt, President of the Executive Committee Phone +41 (0)44 220 46 34 Fax +41 (0)44 220 40 10 Roland Walder, CFO Phone +41 (0)44 220 44 26 Fax +41 (0)44 220 40 10

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