EANS-Adhoc: Neschen AG reports an operating loss in 2008 and positive effects arising from a credit waiver

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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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annual report/Credit Waiver

09.06.2009

The Neschen Group achieved sales of Euro 119.5 million in the last
financial year (previous year Euro 125.0 million). Net of exchange
rate effects, the decline in sales was 3.1%. As a result of the
crisis in the financial markets, considerable reductions in sales in
excess of 10% were recorded in the final quarter of 2008.

This development in sales had a correspondingly negative effect on
operating results. The preliminary EBIT is minus Euro 2.7 million
(previous year Euro 3.2 million) and minus Euro 1.2 million before
one-time effects. Neschen AG will report a (preliminary) pre-tax loss
of Euro 6.8 million for the financial year 2008, following a profit
of Euro 6.5 million in the previous year, which however includes an
extraordinary effect in the form of a waiver of receivables to the
value of Euro 9.6 million. Neschen AG´s results compared with the
previous year are particularly affected by an increase in interest
expenses to Euro 7.5 million (previous year Euro 6.4 million). The
results of the group in 2008 include positive net one-time effects of
Euro 1.5 million, due amongst other things to a revaluation of
accruals and fixed assets.

Due to the random tests currently being carried out by the Financial
Reporting Enforcement Panel (DPR) on certain selected audit areas of
the group financial statements for the period ending on 31.12.2007,
Neschen AG will not publish its business results for 2008 until this
audit has been concluded. This ensures that the financial statements
will not subsequently have to be corrected on account of adjustments
of valuation and presentation matters that might have to be carried
out.

The worldwide recession created a significant decline of demand in
the graphical industry at the end of 2008. A revival of business is
not anticipated before 2010. The company´s focus was adjusted in
accordance with the market and Neschen AG´s activities in the USA
were also restructured as part of this adjustment process. This will
lead to cost savings of approximately Euro 6.0 million in the fields
of personnel and other costs in the current financial year 2009. In
its individual company financial statements Neschen AG also carried
out unscheduled write-offs of financial investments and receivables
due from its US subsidiary company.

The bank that finances the Neschen Group´s activities remitted
receivables from retained interest to the value of Euro 22.3 million
in an agreement signed on June 08, 2009. New debtor warrants were
agreed in return. The effect of the waiver and another new debtor
warrant which has a strengthening effect on equity amounts to
approximately Euro 16.6 million.

The share of this waiver due to Neschen AG was posted retroactively
to the company´s financial statements (according to German Accounting
Rules (HGB)) for the period ending on 31.12.2008 but, in accordance
with IFRS accounting rules, the waiver and the new debtor warrant
cannot be included in the group financial statements until the month
of June.

After carrying out the required write-offs of fixed assets and
consideration of the credit waiver and the new debtor warrants,
Neschen AG´s shareholders´ equity was Euro 12.6 million on 31.12.2008
(an equity ratio of approximately 28%). At the group level an equity
ratio of almost 20% will be achieved. The credit waiver reduces
annual interest payments by approximately Euro 3.2 million.

The board of management of Neschen AG anticipates that the Financial
Reporting Enforcement Panel´s investigations will be completed
quickly, enabling the final figures and the complete 2008 financial
statements to be published soon.

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

Further inquiry note:

Neschen AG

Gerd Röhrig

Hans-Neschen-Straße 1

31675 Bückeburg

Germany

Phone: +49-(0)5722-207 206

investor.relations@neschen.de

Branche: Process Industries
ISIN: DE0005021307
WKN: 502130
Index: CDAX
Börsen: Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / regulated dealing
Frankfurt / regulated dealing/general standard