CEAG AG sells its business unit FRIWO Mobile Power

-Flextronics acquires the mobile telephone power supply and charger
business unit (FMP)
- CEAG to focus on the fast growing FRIWO Power
Solutions business unit (FPS)

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merger, acquisition and takeover/merger, acquisition and takeover

Ostbevern (euro adhoc) - CEAG AG (FSE: CEA), a leading international
manufacturer of power supplies and chargers, has agreed to sell its
FRIWO Mobile Power (FMP) business unit to a subsidiary of Singapore
based Flextronics International Ltd. (NASDAQ: FLEX). An agreement to
this effect was signed today. Flextronics is a leading Electronics
Manufacturing Services (EMS) provider with sales of US$ 30 billion in
2007, focused on delivering complete design, engineering and
manufacturing services to OEMs. FMP will become part of Flextronics´
components business unit Vista Point Technologies, which designs,
builds and markets refined microsystems for end users, including
camera modules, antennas, radio frequency (RF) modules, and thin film
transistor (TFT) displays and power supplies.

The purchase price amounts to EUR 57.5 million on a
cash-free/debt-free basis and is subject to customary working capital
adjustments which could reduce the net proceeds CEAG will receive.
The transaction is subject to the approval of the competent antitrust
authorities and other customary closing conditions and is expected to
close during the first half of 2008.

FMP, one of the world´s largest manufacturers of power supplies and
chargers for mobile telephones, generated third party revenues of EUR
177.4 million in the first nine months of 2007. The three production
plants in China, the two design centers in Germany and China and the
remaining FMP offices in Korea, North America, Brazil, India and
Germany employ more than 16,000 personnel. All FMP employees
worldwide, including the 39 FMP employees at the Ostbevern facility,
will continue with FMP following the transaction. Another 233 staff
are employed by CEAG AG / FPS in Ostbevern.

Following the acquisition of FMP, Flextronics will support FPS,
through an EMS partnership whereby the Vista Point Technologies
business unit will provide manufacturing services for FPS that are
currently sourced from FMP. CEAG AG will retain the rights to use the
FRIWO brand after the consummation of the transaction.

Background to the sale The competitive environment amongst the mobile
phone suppliers has intensified due to the entry of new market
participants and has therefore increased pricing pressure. Against
this background the CEAG management board carefully analyzed
strategic options and made the decision, which was approved by the
supervisory board, to sell the FMP business unit to Flextronics.

The acquisition of FMP by Flextronics is expected to generate
considerable synergies and will enable FMP and Flextronics to further
meet the requirements of their global customer base. With FMP's
integration into Flextronics, FMP will have access to substantial
resources, such as worldwide manufacturing locations, and Flextronics
will expand its customer portfolio.

CEAG AG´s future strategy Following the sale, CEAG AG will focus on
the continued development of the FRIWO Power Solutions (FPS) business
unit, which is experiencing strong growth. FPS operates with power
supplies and chargers for IT and communication, household appliances
and power tools, industrial applications and medical technology.

The FPS business unit has recorded strong growth in recent years and
has seen profitability rise considerably. In 2006, FPS´ revenues
increased by 25% to EUR 79 million, with EBIT reaching EUR 3.5
million. FPS generated EUR 63.3 million in revenues in the first nine
months of fiscal year 2007, which represents growth of 11.6%. EBIT
rose to EUR 3.9 million in the same period, an increase of almost 50%
compared to the corresponding period in the previous year.

Rolf Endress, CEO of the Management Board of CEAG AG: "Selling FMP
now is a strategically and economically sound decision and is in
CEAG´s best interest. We have carefully analyzed the opportunities
and risks for FMP and have come to a clear conclusion. FMP rose to
global market leadership as a part of the CEAG Group. We believe
that, as part of Flextronics, the FMP business unit will continue to
develop positively in a challenging competitive environment. CEAG
will now focus all its energy on further building the FRIWO Power
Solutions business unit."

Further information:
CEAG AG,
Gudrun Richter,
Investor Relations
Tel.: +49 - 2532 - 81 158
eMail: richter@friwo.de

CEAG AG CEAG AG, General Standard listed, has its registered office
in Bad Homburg, Germany, and its headquarters in Ostbevern,
Westphalia, Germany. CEAG AG is the holding company of the two FRIWO
business units. The FRIWO Mobile Power (FMP) business unit operates
in the mobile communication market and is the world´s leading
manufacturer of chargers for mobile telephones. The FRIWO Power
Solutions (FPS) business unit manufactures custom-made power supplies
and chargers for the four segments of IT and communications, power
tools, industrial applications and medical technology. CEAG AG/FRIWO
Group is present in all major world markets, with state-of-the-art
development centers, production and sales in Europe, Asia and North
and South America. CEAG AG´s principal shareholder is DELTON AG,
holding almost 77% of its capital.

DELTON AG DELTON AG is a holding company headquartered in Bad
Homburg, Germany. With its divisions Pharmaceuticals, Household
Products, Logistics and Power Supply, it manages the value-creating
investment and entrepreneurial activities of its sole shareholder
Stefan Quandt. DELTON AG is active in clearly defined markets
offering future growth in which its divisions already hold or are
intending to achieve leading positions on an international scale.
With a workforce of more than 32,000 employees, the DELTON Group
generated sales of around EUR 2.6 billion in fiscal 2006.

end of announcement euro adhoc
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ots Originaltext: CEAG AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Gudrun Richter

Investor Relations

Telefon: +49 (0) 2532-81-158

E-Mail: richter@friwo.de

Branche: Semiconductors & active components
ISIN: DE0006201106
WKN: 620110
Index: CDAX
Börsen: Börse Hamburg / free trade
Börse München / free trade
Börse Berlin / regulated dealing
Börse Stuttgart / regulated dealing
Börse Düsseldorf / regulated dealing
Börse Frankfurt / regulated dealing/general standard