Medisana AG: MEDISANA acquires majority of Gimelli Laboratories Co. Ltd., Hong Kong

Medisana AG: MEDISANA acquires majority of Gimelli Laboratories Co. Ltd., Hong KongNext step in continued overseas expansion announced. Extension of the value-creation chain and product portfolio, as well as liquidation of the debtor warrant, significantly enhance revenue and earnings prospects.

Hilden, December 31, 2009 – Today, MEDISANA AG has acquired 51% of the shares in Gimelli Laboratories Co. Ltd., Hong Kong, (Gimelli). The company, which employs 450 staff members and was founded in Switzerland in 1945, has operated since the early 1990s in Hong Kong and China as an ISO-certified manufacturer of medicine products in the areas of dental care, as well as cosmetic products and qualified personal hygiene. The greater portion of this acquisition will be financed by issuing 630,000 MEDISANA shares as part of a capital increase through contributions in kind. The agreement that has been signed today also entitles MEDISANA AG to purchase a further 49% of the company’s shares within a four-year period by way of a purchase option.

With the acquisition of Gimelli Laboratories Co. Ltd., MEDISANA AG is not only extending its value-creation chain, but now also has access to modern integrated manufacturing capabilites. At the same time, MEDISANA AG’s product portfolio is being extended to include the dental care area. Above and beyond this, significant synergy effects arise from the cosmetic products and qualified personal hygiene areas. The acquisition also benefits the international business of MEDISANA AG that is already recording marked growth. Gimelli commands a strong position in the US market, among other areas.

*Cancellation of debtor warrant – no more restrictions on earnings*
The purchase of Gimelli Laboratories Co. Ltd. not only realises considerable revenue and earnings contributions, but also results in the cancellation of a debtor warrant to Gimelli International Ltd, Hong Kong, as a result of which MEDISANA AG has been restricted to retaining earnings before tax (EBT) of only EUR 2 million per annum to date. Any annual earnings above this level would have had to have been disbursed to Gimelli International Ltd, Hong Kong, for which the company issued a waiver of debts outstanding. This debtor warrant lapses as part of today’s acquisition, as a consequence of which MEDISANA AG’s future earnings are no longer subject to deductions, and are fully available to the company.

*Outlook: notification of fourth consecutive record year*
The MEDISANA Group will realise consolidation effects from this acquisition with significantly positive revenue and earnings contributions from January 1, 2010. The acquisition of Gimelli will result in a marked acceleration of corporate growth in 2010. As far as the 2009 financial year that has just ended is concerned, the Management Board continues to expect revenue growth of at least 5% compared with the prior year’s record level of EUR 30.2 million, and that the 2008 earnings level of EUR 1.0 million will be attained. By contrast, with a look to the 2010 financial year, the management had only forecast the continuation of company growth to date. The Management Board now anticipates considerable revenue and earnings growth, and consequently the fourth consecutive record year.

*MEDISANA AG*
Itterpark 7-9
40724 Hilden
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Fax: ++49 (0)2103-200 7-10
info@medisana.de