EANS-Adhoc: MEDION AG / Conclusion of a domination and profit and loss transfer agreement - Determination of a compensation of EUR 13.00 per share

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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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Contracts

25.10.2011

MEDION AG: Ad-hoc-announcement pursuant to section 15 of the German
Securities Trading Act (WpHG)

MEDION AG: Conclusion of a domination and profit and loss transfer
agreement - Determination of a compensation of EUR 13.00 per share

Essen, 25 October 2011 - MEDION Aktiengesellschaft as controlled
company and Lenovo Germany Holding GmbH, an indirect wholly-owned
subsidiary of Lenovo Group Ltd., as controlling company today entered
into a domination and profit and loss transfer agreement.

The agreement provides for a cash compensation offer pursuant to
Section 305 of the German Stock Corporation Act (AktG) in the amount
of EUR 13.00 per share and a guaranteed dividend pursuant to Section
304 of the German Stock Corporation Act (AktG) in the amount of EUR
0.82 gross per share (EUR 0.69 net per share). These payment
obligations will be additionally secured by a letter of comfort
issued by Lenovo (Singapore) Pte. Ltd., an indirect wholly-owned
subsidiary of Lenovo Group Ltd.

The cash compensation offer according to Section 305 of the German
Stock Corporation Act (AktG) and the guaranteed dividend pursuant to
Section 304 of the German Stock Corporation Act (AktG) are based on
an expert valuation prepared by KPMG Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft, Berlin ("KPMG"). According to the
results of the valuation by KPMG, the company value
(Unternehmenswert) of MEDION Aktiengesellschaft amounts to approx.
EUR 521.17 million, which is equivalent to a value of EUR 11.67 per
share. The average share price of MEDION shares during the relevant
three months period prior to the publication of the intention to
enter into a domination and profit and loss transfer agreement on 29
July 2011 as determined by the German Federal Financial Supervisory
Authority (BaFin) amounts to EUR 12.31 per share. The management of
Lenovo Germany Holding GmbH has nevertheless decided to agree with
MEDION Aktiengesellschaft on a compensation in the amount of EUR
13.00 per share provided in the domination and profit and loss
transfer agreement. This amount corresponds to the offer price paid
by Lenovo Germany Holding GmbH to MEDION shareholders under the
voluntary public takeover offer.

The domination and profit and loss transfer agreement requires the
approval of an extraordinary general meeting of MEDION
Aktiengesellschaft, which will presumably take place on 14 December
2011.

Essen, 25 October 2011

MEDION Aktiengesellschaft
The Executive Board

Further inquiry note:
Investor Relations
Tel.: +49(0)201 83836501
E-Mail: aktie@medion.com

end of announcement euro adhoc
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issuer: MEDION AG
Am Zehnthof 77
D-45307 Essen
phone: +49(0)201 83836500
FAX: +49(0)201 83836510
mail: aktie@medion.com
WWW: http://www.medion.com
sector: Technology
ISIN: DE0006605009
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English