[Leica] my favorite film arrgh !

[ruben at rhodos.dk (Ruben)]

Agfa-Gevaert on the insolvency filing of AgfaPhoto GmbH

Mortsel/Belgium, May 27, 2005 - Agfa-Gevaert announced today that it was 
informed of the insolvency filing by AgfaPhoto GmbH. Agfa-Gevaert is fully 
prepared to co-operate with the insolvency receiver once appointed and all 
parties concerned.

Effective November 2, 2004, Agfa-Gevaert sold its consumer imaging business 
to a group of investors in a management buy out/in. Since then the consumer 
imaging business has been operated through a group of companies under the 
name of AgfaPhoto. The AgfaPhoto group is a private group of companies owned 
by management, NannO Beteiligungsholding and a small number of financial 
investors.

Agfa-Gevaert provides AgfaPhoto group companies with distribution, order 
fulfillment, after sales and other services until the end of 2005.

In addition, at the time of the management buy out/in on November 2, 2004, 
Agfa-Gevaert granted a secured vendor loan for the full purchase price. 
Based on Agfa Gevaert's audited financial statement, the purchase price was 
set at 112 million Euros, which is still subject to an audit of the closing 
financials by the purchaser. The vendor loan is fully secured by a lease 
portfolio held by AgfaPhoto Holding GmbH, the parent company of the 
AgfaPhoto group. AgfaPhoto Holding GmbH is not implicated in the insolvency 
filing of AgfaPhoto GmbH. Agfa-Gevaert therefore does not expect the 
insolvency filing by AgfaPhoto to have a material effect on Agfa-Gevaert.

Agfa-Gevaert regrets this development for AgfaPhoto GmbH but is hopeful, 
that in the interest of preserving the employment and the business 
operations of AgfaPhoto group, the current difficulties can be overcome and 
that AgfaPhoto GmbH recovers quickly.