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ARQUES completes acquisition of SHC

Starnberg, Oct 1, 2008 | 
Starnberg-based ARQUES Industries AG (ISIN DE0005156004) has completed the purchase of an 80.2% equity interest in Siemens Home and Office Communication Devices GmbH & Co. KG (SHC) from Siemens AG. After the transaction was approved by the European Cartel Office, the transfer took effect on October 1, 2008 (contract closing date). Siemens will continue to hold 19.8% of the ARQUES subsidiary. “The acquisition of SHC is a typical ARQUES transaction: fair purchase price, strong value enhancement potential. Once again, we benefited from our reputation as a reliable partner to major corporations seeking to spin off their subsidiaries. In the case of this transaction, it was very important to the seller Siemens that we can provide a “good home” for the company, which has now been renamed Gigaset Communications,” said Dr. Michael Schumann, Chairman of the ARQUES Executive Board.

SHC renamed to Gigaset Communications
In connection with the acquisition, SHC was renamed Gigaset Communications GmbH effective October 1, 2008. The new company name reflects the successfully established market position of the brand name Gigaset as a synonym for cordless telephones. In Germany alone, every second household owns a Gigaset telephone; in Europe , every fifth household owns one. Based in Munich , Gigaset Communications is Europe ’s No. 1 supplier of cordless telephones and is one of the world’s biggest suppliers in this sector. Aside from Gigaset telephones, the business activities acquired from Siemens also include broadband devices and home entertainment devices. SHC generated revenues of approximately EUR 790 million in fiscal year 2007. Two thirds of the company’s revenues were generated on sales of its Gigaset cordless telephones. With 2,100 employees in 17 countries, the company maintains a global presence and distributes its products in about 70 countries of the world. The biggest location, with about 1,400 employees, is the ultra-modern production facility in Bocholt .

New management plans to further extend the company’s market leadership position
Also with effect from October 1, 2008, the management team of Gigaset Communications was reinforced by the addition of Oliver Apelt, who will be responsible for operations. Mr. Apelt will be working with the Managing Directors José Costa e Silva and Thomas Kresser. As Vice President Operations of the parent company ARQUES, the 37-year-old Oliver Apelt last served as the subsidiary manager of the BEA companies belonging to the ARQUES Group.
Under ARQUES’ management, the plan is to further extend the strong position of Gigaset Communications as the market leader in the premium price segment. To this end, the product portfolio will be focused on profitable business lines. The company intends to achieve targeted growth by means of introducing a considerable number of product innovations in a number of areas, including Voice-over-IP, for example, and to expand the company’s international business. In order to successfully place the innovative Gigaset products in the market, ARQUES will be entitled to continue using the Siemens brand name for the next two years.

ARQUES’ balance sheet ratios improved as a result of this transaction
The consolidated balance sheet of the ARQUES Group will not be adversely affected by this transaction. Due to the favorable purchase price as well as the solid capital resources, the transaction will in fact slightly improve ARQUES’ equity ratio and gearing ratio (debt-to-equity ratio). The goal is for Gigaset Communications to be sustainably profitable and to generate a significant positive free cash flow.

About ARQUES
ARQUES Industries AG, Starnberg (www.arques.de), is a reliable partner to major corporations seeking to spin off their subsidiaries, and a turnaround specialist that focuses on the acquisition and active restructuring of companies in crisis situations. Through its own team and resources, ARQUES seeks to transform such companies into competitive, profitable enterprises. ARQUES revitalizes the value-added potential of its subsidiaries to the benefit of all their stakeholders, while living up to the related social responsibility. The shares of ARQUES Industries AG are traded and listed in the Prime Standard segment of the Frankfurt Stock Exchange under the symbol “AQU’ (ISIN: DE0005156004). Moreover, the ARQUES share is part of the SDAX index. 
                                                     

Contact:
ARQUES Industries AG
Investor Relations & Corporate Communication
Anke Lüdemann, CEFA/CIIA
E-mail: luedemann@arques.de

Public Relations
Christian Schneider
E-mail: schneider@arques.de

Tel.: +49 (0) 8151/ 651 0

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