Growth of M+W Zander expected to continue after the separation from Jenoptik

Springwater Capital will retain 72.89 percent of its shares in M+W Zander

April 11, 2006 — /M+W Zander/ — Stuttgart — Jenoptik AG, Jena, has sold its shares in M+W Zander Holding AG, Stuttgart, to the investment group Springwater Capital, Geneva/London. The closing terms of the contract between Jenoptik and Springwater Capital, which was finalized on December 18. 2005 have, bar the concluding funding contract of the outside creditor, since come into effect. Several conditions were wavered. The implementation of the contract of sale will follow in the course of the second quarter. This much was disclosed today at the press conference on financial statements held by JENOPTIK AG in Jena. Regarding further developments at M+W Zander, Martin Gruschka, founding partner of the new majority owner of the Stuttgart technology concern, announced optimistically, “We reckon with a speedy and profitable growth of the M+W Zander Group, which can materialize from both organic growth and from acquisitions. The colossal increase in incoming orders by approximately 50 percent, as well as the augmentation of orders on hand, up to as much as 56 per cent, back up our growth expectations”.

Sustained by the existing strong market position in the core business segments of International Plant Engineering and Construction and Facility Management, M+W Zander anticipates for 2006 a sales increase of around 25 per cent, up to 2 billion Euros, combined with a rise in profitability. As a consequence of further growth in the electronic sector, M+W Zander can register a record balance of orders in the business segment International Plant Engineering and Construction due to its standing on the market. The business segment of Facility Management can likewise anticipate a stable and profitable growth through both the acquisition of new clients, as well as contract expansion with stock clients. A turn round could be achieved with major subsidiary companies such as for example, M+W Zander Products and LSMW, so that here too in 2006, an increased turnover and augmentation of profits is to be anticipated. The automation sector (Lang&Peitler, BIAS) will also link up on the hitherto sound growth rate. In the sector of information technology, with the IT service provider caatoosee ag, a conspicuous turn round was likewise procured.

After payment of the purchase price to Jenoptik, the investment group Springwater Capital will hold 72.89 per cent of the shares in the M+W Zander Holding AG, as managing company of the globally operating M+W Zander Group. The remaining 27.11 per cent remain as before the property of the family. The transfer of shares to Springwater Capital, as well as the payment of the purchase price, will be affected shortly.

At the financial statement press conference concerning the expired business year, Jenoptik also presented, for the last time, the annual financial balance of M+W Zander. These figures are considerably influenced by the sale of the company group and the therewith implicated evaluation of all business activities, as well as the reassessment of special themes incorporated in the contract of sale.

Figures for 2005 affected by the one-time action

The M+W Zander Group achieved a turnover of 1509.5 mill. Euros. In 2004 the volume had amounted to 2.15 bn. Euros. Admittedly this balance comprises the sales revenue of 450 mill. Euros attained by M+W Zander Geb

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