EANS-Adhoc: S&T Leads the Acquisition of Smart Grid Market Leader in Europe

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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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Mergers - Acquisitions - Takeovers
22.08.2014

Linz, 22.08.2014. S&T AG (www.snt.at) signed today a contract for the
acquisition of the smart grids business of the California-based
Echelon Corporation (www.echelon.com). The acquisition is to take
place via a company that will soon be founded, and in which S&T AG
will have a 40% stake, with the rest of the new company's shares
being held by strategic and financial investors. The corresponding
contracts have already been concluded.

The new company will completely take over the smart grids business of
Echelon Corporation, which is to focus its operations on the
"Internet of Things" business area. The smart grids business
comprises intelligent electricity meters, data concentrators and
software applications for the management of such meters and of other
devices employing the Open Smart Grid Protocol (OSGP). Echelon Smart
Grid Business has installed four million of such devices, figures
making it one of the leaders in this area on the European market. The
acquisition of the smart grids division of Echelon Corporation
entails the transferring of the associated assets - technologies
(including patents), products, employees and customer relationships -
to the new company, some 70% of whose customers are based in Europe.
The rights to market on the European market have been directly
transferred to S&T AG; with those for markets in the Middle East and
Asia to be held by strategic cooperation partners.

S&T AG will expend some EUR 2,5 million to acquire its 40% stake in
the new company and the rights to distribute its products in Europe.
Also to be expected is for S&T to bear costs of integration amounting
to some EUR 0.5 million. The shares of the new company are to be
reported at equity in S&T's accounts. The closing is to be preceded
by the deal's being approved by fair trade authorities, and is
expected to take place at the beginning of the fourth quarter 2014.

This transaction will further beef up S&T's operations in the smart
energy sector. These operations are grouped in the company's highly
successful Appliances segment, which is of great strategic importance
to the company. A further factor speaking for the transaction: it
will rapidly yield synergies with ubitronix system solutions GmbH,
which itself was taken over by S&T at the beginning of 2014. These
synergies will ensue from the long-term business relationships
maintained between the two acquisitions. The expansion of the range
of markets upon which S&T distributes its smart grids products will
be channeled via its subsidiaries in Eastern Europe.

S&T's rise to one Europe's full-range suppliers of the technologies
used by energy suppliers is being driven by its end-to-end portfolio
of Integration Services for IT infrastructure and ERP systems, the
meter management applications of ubitronix and the smart meter
products to be acquired from Echelon.

The sales registered in 2015 by the S&T Group are to rise by at least
EUR 25 million to EUR 465 million. The EDITA is to increase by a
further EUR 1.5 million. The existing project pipeline enables S&T to
register even greater rises in sales in the months and years to come.

On S&T AG

S&T AG (ISIN AT0000A0E9W5, WKN A0X9EJ, SANT) is listed on the Prime
Standard segment of the Frankfurt Stock Exchange. The company has
some 2,100 employees, and offices in 19 countries in Central and
Eastern Europe. S&T is one of the three largest providers of IT
systems in Austria and in Eastern Europe. One of S&T's main assets is
the exceptional breadth of its portfolio of products and services.
Many of these feature proprietary technologies. These are for such
areas as cloud security, smart energy and mobile IT. This portfolio
is supplied throughout Central and Eastern Europe.

Further inquiry note:
ir@snt.at; +431801911125;

end of announcement euro adhoc
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issuer: S&T AG
Industriezeile 35
A-4021 Linz
phone: +43 664 6119214
FAX: +43 1 80191 1290
mail: ir@snt.at
WWW: www.snt.at
sector: Computing & Information Technology
ISIN: AT0000A0E9W5, DE000A1HJLL6
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English