Ad-hoc | 1 December 1999 08:33

Ad hoc-Service: Hunzinger Information AG Engl

Ad hoc-announcement edited and send by DGAP. The sender is responsible for the contents of this announcement. —————————————————————————— Hunzinger Information AG to become one of the world’s leading providers of digital press photos – Hunzinger acquires majority of action press, Germany’s largest privately owned press photography agency – One of the world’s largest digital photography databanks: 400,000 press photos available online – 600 press photographers in 20 countries – provider of PR services completes link between word and pictures – action press: 1999 pre-tax income soars by 141 percent – 2000 pre-tax margin of at least 11 percent Hamburg/Frankfurt am Main, 1 December 1999. Hunzinger Information AG (Frankfurt am Main) has taken the step to becoming one of the world’s leading providers of digital press photography. The deal was officially notarized this morning in the offices of Dr. Henning Voscherau, the first ex-Lord Mayor of Hamburg. On January 1, 2000 Hunzinger’s fully owned subsidiary Hunzinger PR GmbH will acquire a 50.2 percent 0majority holding in action press GmbH & Co. KG (Hamburg). The purchase price was funded from the company’s cash flow. Plans call for Hunzinger Information AG to acquire the remaining 49.8 percent in two years. With its online databank of 400,000 press photos, action press is one of the ten largest agencies active in the advanced market for online photography. In addition, action press is one of Germany’s biggest private press agencies and has a photo library consisting of over five million pictures. The agency’s major customers include news magazines, popular magazines and daily newspapers. It is estimated that this group of customers will generate about 84 percent of total annual revenues in 1999 that are anticipated to be DM 10.4 million (+ 13 percent; 1998: DM 9.2 million ). The agency works together with 24 international partner agencies and 600 photographers to provide customers with the latest coverage of international news photography. The acquisition means that Hunzinger Information will achieve its business goals for the year 2000 – total consolidated revenues of DM 53.6 million and DM 7.5 million in results from ordinary business activities – without taking into consideration any further expansion of the other business areas. The acquisition marks the start of a prudent business growth strategy that will lead to the strengthening and expansion of Hunzinger’s leading position in the PR and political communications market. According to Management Board members Moritz Hunzinger (40) and Menno Smid (50), planning for the coming business year will need to be upwardly adjusted to reflect the additionally planned acquisitions. The Management Board anticipates that the 1999 business year will lead a 39 percent increase in revenues to DM 45.6 million (1998: DM 32.9 million ) and an 82 percent in results from ordinary business activities to DM 6 million (1998: DM 3.3 million). action press estimates that its 1999 performance will show a 141 percent in pre-tax income to DM 1.03 million (1998: DM 426,000). The forecast for the year 2000 calls for revenues of DM 11.6 million (+ 11.9 percent) and pre-tax income of about DM 1.3 million (+ 24.7 percent). This forecast does not include anticipated increases in performance arising from synergies with Hunzinger Information and a recently introduced satellite-based news photo service for daily newspapers. According to Hunzinger, the main reason for the acquisition of the profitable press photo agency – action press anticipates posting a pre-tax return on sales of 9.9 percent – is the rapidly growing demand for news pictures, especially for the Internet and the print media. He further expects that the acquisition will lead to considerable cross-selling effects and synergies in addition to notable increases in income and earnings. The acquisition will enable Hunzinger to provide numerous additional photo services and strengthened presence in the Internet and the traditional media to their 400 clients located in the fields of industry, finance, trade, media and services as well as the public sector. The acquisition also means that the subsidiary firm, Hunzinger PR GmbH, will open a branch office in Hamburg. Hunzinger Information AG 60322 Frankfurt am Main, Holzhausenstraße 21 Telephone (069) 152003-0, Telefax (069) 152003-33 www.hunzinger.de. German Security Number 609 710 (HUZG.DE) E-mail info@hunzinger.de End of Message