Agfa-Gevaert on AgfaPhoto

The German and international press have published various articles on alleged claims and lawsuits by the insolvency receiver of AgfaPhoto GmbH. Agfa-Gevaert has not received any formal claims by the insolvency receiver of AgfaPhoto GmbH nor is Agfa-Gevaert currently engaged in litigation proceedings with the insolvency receiver of AgfaPhoto GmbH. Agfa-Gevaert has meritorious positions on the reported alleged claims and will defend itself vigorously if any such claims were brought.

According to certain press reports, the insolvency receiver of AgfaPhoto GmbH would be claiming an amount of 60 million Euro from Agfa-Gevaert in connection with a capital increase of AgfaPhoto GmbH in the context of the divestiture of Agfa-Gevaert’s Consumer Imaging Business in 2004. Agfa-Gevaert has not received a formal claim by the insolvency receiver of AgfaPhoto GmbH nor is it aware that such a claim would have been filed. Agfa-Gevaert is of the firm opinion that the alleged claim lacks a sustainable basis. The capital increase was scrutinized by independent auditors and the modalities of the capital increase were reviewed and accepted by the competent court. Agfa-Gevaert will defend itself vigorously against any claims challenging the appropriateness of the capital increase.

In the same vein, it is reported that Agfa-Gevaert would be engaged in arbitration proceedings with the insolvency receiver of AgfaPhoto GmbH before the International Chamber of Commerce (ICC) concerning an alleged payment obligation of 46 million Euro. No such proceedings are currently pending and Agfa-Gevaert is not aware that the insolvency receiver would have lodged a claim with the ICC. Immediately after the insolvency filing of AgfaPhoto GmbH in May 2005, Agfa-Gevaert has, in order to support the preliminary receiver and the new management in the objective to preserve the operations and employment of AgfaPhoto GmbH, agreed to perform certain distribution activities. To this end an agreement was signed with AgfaPhoto GmbH’s preliminary receiver, Dr. Ringstmeier, and the new management of AgfaPhoto GmbH according to which Agfa-Gevaert is to pay for the goods supplied by AgfaPhoto GmbH only if and when the end customer has paid its invoices. It was further agreed that Agfa-Gevaert itself would not be exposed to any commercial or financial risks in connection with the distribution of AgfaPhoto’s consumer imaging products. The settlement of payments under this arrangement with the insolvency receiver of AgfaPhoto GmbH is an ongoing process. Agfa-Gevaert regrets to have to express itself on an ongoing commercial settlement process through the media.