Sternenfels, November 23, 2006 – The Management Board of HamaTech AG has, with the approval of the Supervisory Board, decided to examine the transfer of its entire Optical Disc activities from Sternenfels to Kahl as a means of exploiting further synergy benefits, and to enter into negotiations with the Works Council on this matter. The Optical Disc activities had originally comprised the Pre-Recorded and Recordable Divisions. The acquisition of HamaTech AG by SINGULUS TECHNOLOGIES AG at the start of 2006 initially resulted in a consolidation of the Recordable Division at the Sternenfels location: the move by the Management Board of HamaTech AG to wind up the Pre-Recorded Division coincided with the decision by SINGULUS to close the Recordable Division in Kahl. SINGULUS' existing Recordable customers were subsequently supplied with HamaTech equipment. HamaTech was able to realize significant cost savings by focusing on the Recordable core area. However, since the slump in the market in 2005 no recovery in demand for systems for the production of recordable discs has yet materialized. Nor will the rise in demand expected in 2007 be sufficient to assure permanent profitability in the Recordable business in the prevailing circumstances without introducing further measures. In order to realize further cost reductions, it is necessary to pool all activities involving the development and marketing of optical disc systems of all formats at a single location. By realizing further synergy benefits there is potential to achieve positive results also for the recordable systems.
End of Press Release
HamaTech AG
Ferdinand-von-Steinbeis-Ring 10
75447 Sternenfels / Germany
Internet: www.hamatech.de
ISIN: DE0007309007, WKN: 730900