EANS-Adhoc: ESCADA decides on path for financial restructuring

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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23.04.2009

Munich, April 23, 2009 - Today the Board of Management of ESCADA AG
decided with the approval of the Supervisory Board on the path for
the company's financial restructuring. To ensure its survival, the
company requires around 30 million euros to cover its liquidity
demands for the current fiscal year, plus a significant reduction of
the Group's debt and a secured mid- to long-term financial platform
for the Group. In order to place the ESCADA Group on a long-term
solid financial footing the implementation of four interdependent
measures as one restructuring and recapitalization package is urgent
and unavoidable.

The details for the following individual measures to be taken are
presently still being fine-tuned:

1. Subject to the Annual Shareholders' Meeting on April 28, 2009 resolving
the planned capital reduction and creation of a new authorized capital, the
concept envisages a cash capital increase generating a cash-in of 30 million
euros and upholding the shareholders' subscription rights. The subscription
period for the new shares is scheduled for the end of June to the beginning of
July 2009. The equity holders 'BO-DO Vermögensverwaltung GmbH' (shareholder:
Wolfgang Herz) and 'MPS Erste Vermögensverwaltung GmbH' (shareholder: Michael
Herz), who together with additional shareholders have registered a stake of
24.9% in ESCADA AG's equity, would declare their willingness to invest an amount
of up to 20 million euros of above total, if the German Federal Financial
Supervisory Authority ("BaFin" - Bundesanstalt für
Finanzdienstleistungsaufsicht) issues a waiver on the duty to submit a mandatory
offer to the other shareholders pursuant to Sect. 37 of the German Securities
Acquisition and Takeover Act (WpÜG - Wertpapiererwerbs- und Übernahmegesetz),
and if the cash-in of a total of around 30 million euros actually is generated
and the three measures outlined in the following are realized. Negotiations are
being held with other interested parties.

2. The bond issued in 2005 with a nominal volume of 200 million euros and
due for repayment in April 2012 shall be restructured. ESCADA AG will submit a
public offer for conversion to a new bond to all creditors of the bond so as to
significantly reduce the burden of debt. By accepting the offer the creditors
would contribute toward the recapitalization by relinquishing repayment of a
significant portion of the bond and agreeing to the prolongation of the bond's
term. The conditions of the exchange offer are currently being worked out.

3. In addition, the Board of Management is engaged in advanced negotiations
with the banks financing ESCADA AG. The negotiations concern the further
safeguarding of the Group's financing by upholding existing and/or granting new
credit lines. A corresponding approval shall be obtained prior to the conversion
period for the bond, subject to the other three measures being implemented.

4. Fiscal planning safety shall be established by requesting a binding
statement.

It is planned to have the financial restructuring completed in the
course of July 2009.

Mr. Wolfgang Herz, whose regular term as Supervisory Board member of
ESCADA AG is due to expire on April 28, 2009 will not be available
for election, as originally intended, at the Annual Shareholders'
Meeting on the same day.

end of ad-hoc-announcement ==========================================
====================================== This press release is not an
offer for sale of securities in the United States. Securities may not
be sold in the United States absent registration with the United
States Securities and Exchange Commission or an exemption from
registration under the U.S. Securities Act of 1933, as amended.
ESCADA AG does not intend to register any part of any offering in the
United States or to conduct any public offering of securities in the
United States.

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

Further inquiry note:

Frank Elsner Kommunikation für Unternehmen GmbH

Frank Elsner

Phone: +49 - 54 04 - 91 92 0

Email: info@elsner-kommunikation.de

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
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