EANS-Adhoc: ESCADA AG / ESCADA publishes Annual Financial Statements 2007/2008 and key figures for 1st quarter of fiscal year 2008/2009 - capital reduction planned

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Annual Figures/Quarterly Figures/Capital Measures

17.03.2009

Munich, 17.03.09 - ESCADA Group generated sales of 582.1 million
euros in fiscal year 2007/2008, which is 15.2% less than last year's
total of 686.1 million euros. The currency-adjusted decline was
13.1%. The business performance was affected by an increasingly more
difficult market environment for the luxury goods industry, which
itself was aggravated by the financial crisis. In addition, the
earnings situation was burdened in the amount of 42.8 million euros
through special items and restructuring costs as well as unscheduled
depreciation on goodwill, other assets and deferred taxes.

Due to an amendment in reporting, earnings before interest, taxes,
depreciation and amortization (EBITDA) amounted to 8.2 million euros
after 35.5 million euros the previous year. This includes negative
special effects in the amount of 11.3 million euros (previous year:
32.7 million euros), incurred for personnel measures, the termination
of business contracts and the complete separation of the ESCADA and
PRIMERA organizations. Attention must be given to the fact that these
expenditures are no longer recognized as one-time expenses all
grouped together in one position below the EBITDA, but are allocated
to the corresponding cost and income positions. After allowances for
these special items and restructuring costs EBITDA totaled 19.5
million euros and was thus in line with the announcement made in
December (previous year: 68.2 million euros).

The Group closes the fiscal year with a loss after taxes of 70.3
million euros, following a loss of 27.0 million euros the previous
year.

As had been expected the negative sales trend continued throughout
the first quarter of 2008/2009 (November to January) given the
current market developments, but nonetheless weakened compared with
the same quarter one year ago. At 131.5 million euros, consolidated
sales were 7.5% down on the first quarter of fiscal 2007/2008 (142.1
million euros), which then had registered a year-on-year fall of
11.8%. EBITDA of 5.5 million euros (Q1 2006/2008: 6.8 million euros)
includes income in the amount of 13.4 million euros generated from
the sale of assets not required for operations. The Group shows a
quarterly loss after taxes of 6.3 million euros (Q1 2007/2008: -4.0
million euros). For the full fiscal year 2008/2009 the Board of
Management estimates that Group sales will decline in a range between
a high single-digit and a lower double-digit percentage rate. Given
the systemic lead times of over a year in the fashion industry, the
first positive effects from the currently ongoing principal
reorientation of the ESCADA Group cannot be expected before the
second half of the calendar year 2009 at the earliest.

The Board of Management and the Supervisory Board have decided to
propose to the company's shareholders' meeting on April 28, 2009 a
reduction in the company's capital stock of 48.91 million euros, from
107.02 million euros to 58.11 million euros. The simplified capital
reduction is to be implemented by reducing the calculated portion of
each share in the capital stock from the present 5.12 euros per share
to 2.78 euros per share, without any change in the number of shares.
The capital reduction serves to remove the shortage of subscribed
capital of ESCADA AG. This shortage is the result of the 48.9 million
euros balance sheet loss recorded in the annual financial statement
of the company for fiscal year 2007/2008. The reduction of the
calculated portion of each share in the capital stock will
furthermore facilitate the issue of new shares, as the price of such
new shares issued under a capital increase may not fall below the
calculated portion of each share. The agenda for the shareholders'
meeting will be published on March 18, 2009.

The Annual Report for fiscal year 2007/2008 is available for download
from the company's website under http://investor-relations.escada.com
and on the websites of the Deutsche Börse under
www.deutsche-boerse.com.

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

Further inquiry note:

Yara Kes

Investor Relations

Tel.: +49 (0) 89 9944 1336

e-mail: yara.kes@de.escada.com

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: SDAX, CDAX, Classic All Share, Prime All Share
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