MBB Industries AG: Delignit AG with strategic realignment

Sale of the majority of romanian subsidiaries and capital increase

Berlin (pta016/04.10.2010/12:30 UTC+2) October 4, 2010 - MBB Industries AG (ISIN DE000A0ETBQ4), a holding company specialising in medium-sized industrial companies with sustained value growth, expects a non-recurring negative effect on its annual profits up to Eur9.0m as the result of the strategic realignment of its subsidiary Delignit AG and will participate in the capital increase of Delignit AG with an amount of Eur1.5m.

Delignit AG (ISIN DE000A0MZ4B0), leading manufacturer of ecological products and system solutions on the basis of the natural wood material Delignit, will concentrate on its earnings promising business lines Automotive and Technological Applications and will break up with the highly competitive, low-margin business lines. For this, Delignit AG intends to reduce its manufacturing capacities by selling the majority of its subsidiaries Delignit Romania Srl., Cildro S.A. and Cildro Services Srl. in Romania. In the future, Delignit will concentrate its activities at the German site in Blomberg. Contract negotiations with the acquirer of the majority interests of the Romanian companies are in an advanced stage. However - due to current excess capacities in the market - Delignit AG does not expect an adequate selling price. Therefore, a non-recurring impairment at the amount of up to Eur11.0m can be assumed for the Delignit group. In return, the level of debt of the Delignit group will be considerably reduced. The improved level of utilisation of the remaining manufacturing capacities, the reduced level of depth and concentration on the more profitable business lines will immediately lead to a substantial improvement of the earning position of Delignit. This effect is supported by a recently increasing demand for the special materials of Delignit.

In addition, Delignit AG plans to strengthen its equity base by a capital increase, at which MBB Industries AG will participate with the amount of Eur1.5m. The capital increase will take place immediately after the sale of the Romanian subsidiaries. The new shares will be issued at expected Eur1.1 per share. Delignit AG presumes a group equity ratio at approximately 25% after the realignment.

MBB Industries AG, that currently holds 80,55% of Delignit AG shares, expects that the one time book loss amounting up to Eur9.0m in the financial year 2010 could not be compensated completely by positive results of the other holdings. At the same time, MBB Industries expects an improvement of its group net cash position in the amount of Eur5.0m by the disposal of financial debts as a result of the sale of the Romanian companies of Delignit. For the financial year 2011 MBB Industries expects a positive profit contribution of Delignit. The managing board continues to forecast group revenues of Eur120m for the year 2010 as a whole. After participating in the capital increase of Delignit, MBB Industries AG will have liquid funds in the amount of Eur28m for further acquisitions.

About MBB Industries AG:
Since 1995, MBB Industries AG has maintained successful holdings in the form of medium sized industrial companies with sustainable value growth potential. The business model is based on a three-pillar structure, comprising the acquisition of interests at favourable terms, subjecting them to value enhancing holding management, and releasing them in high-yield sales. Right from the start, MBB Industries AG has achieved above-average profitability, and continues to devote its efforts to attaining unusually high yields in the future.

For further information about MBB Industries, please visit http://www.mbbindustries.com

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Emitter:	MBB Industries AG Joachimstaler Str. 34 10719 Berlin Germany
Contact Person:	Sebastian Laiblin
Phone:	0049-030-84415330
E-Mail:	anfrage@mbbindustries.com
Website:	www.mbbindustries.com
ISIN(s):	DE000A0ETBQ4 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Munich, Stuttgart