euro adhoc: PANDATEL AG / Justice/Processes / Ad hoc disclosure acc. to Art. 15 WpHG Merger with Dowslake Microsystems Corp. failed due to the rejection by plaintiffs

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16.11.2006

The district court Hamburg informed Pandatel AG that the time limit
elapsed for accepting the settlement proposal submitted by court
and, consequently, it was rejected by the suing plaintiffs. So,
settlement efforts failed and court proceedings continue and will
end in due course.

14 shareholders filed derivative suits and actions of nullity
against various resolutions of the extraordinary shareholders'
meeting of 27.03.2006. In particular, affected are the
resolutions on capital decrease and increase, which Pandatel AG
wanted to utilize to merge with Dowslake Microsystems Corp. by
increasing its share capital against contribution in kind.

With expiration of the time limit for accepting the court settlement
proposal, the execution of the merger with Dowslake Microsystems
before 31 December 2006 becomes very unlikely. Pandatel AG will
continue co-operation with Dowslake Microsystems Corp. on
contractual basis and look for other options.

Hanover, 16 November 2006

The Management Board

About PANDATEL PANDATEL is a German corporation based in Hanover.
PANDATEL was formed in 1987 as Pan Dacom Telekommunikation GmbH. It
went public at Frankfurt stock exchange in November 1999. Majority
shareholder is Dowslake Venture Ltd. (U.S.A.) with Dr. Dan D. Yang
as CEO. In March 2006, Dr. Yang became also CEO of PANDATEL AG.
PANDATEL is specialized in Ethernet technologies. For further
information please visit www.pandatel.com

end of announcement euro adhoc 16.11.2006 10:57:08
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ots Originaltext: Pandatel AG
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Fax +49 511 33 65 15 33
Email raik.packeiser@insignis.de

Branche: Telecommunications Equipment
ISIN: DE0006916307
WKN: 691630
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