euro adhoc: PANDATEL AG / Justice/Processes / Ad hoc disclosure acc. to Art. 15 WpHG

Merger with Dowslake Microsystems Corp. failed due to the rejection by
plaintiffs (E)=

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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16.11.2006

The district court Hamburg informed Pandatel AG that the time limit elapsed for
accepting the settlement proposal submitted by court and, consequently, it was
rejected by the suing plaintiffs. So, settlement efforts failed and court
proceedings continue and will end in due course.

14 shareholders filed derivative suits and actions of nullity against various
resolutions of the extraordinary shareholders' meeting of 27.03.2006. In
particular, affected are the resolutions on capital decrease and increase,
which Pandatel AG wanted to utilize to merge with Dowslake Microsystems Corp.
by increasing its share capital against contribution in kind.

With expiration of the time limit for accepting the court settlement proposal,
the execution of the merger with Dowslake Microsystems before 31 December 2006
becomes very unlikely. Pandatel AG will continue co-operation with Dowslake
Microsystems Corp. on contractual basis and look for other options.

Hanover, 16 November 2006

The Management Board

About PANDATEL
PANDATEL is a German corporation based in Hanover. PANDATEL was formed in 1987
as Pan Dacom Telekommunikation GmbH. It went public at Frankfurt stock exchange
in November 1999. Majority shareholder is Dowslake Venture Ltd. (U.S.A.) with
Dr. Dan D. Yang as CEO. In March 2006, Dr. Yang became also CEO of PANDATEL AG.
PANDATEL is specialized in Ethernet technologies. For further information
please visit www.pandatel.com

Further inquiry note:
insignis GmbH, Agency for Communication
Raik Packeiser
Berliner Allee 9 - 11
30175 Hanover, Germany
Phone: .+49 511 33 65 15 31
Fax +49 511 33 65 15 33
Email [email protected]

end of announcement euro adhoc 16.11.2006 10:57:08
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emitter: PANDATEL AG
Fasanenweg 25
D-22145 Hamburg
phone: +49(0)40 644 14 0
FAX: +49(0)40 644 14 108
mail: [email protected]
WWW: http://www.pandatel.de
ISIN: DE0006916307
indexes: Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurter Wertpapierbörse,
free trade: Börse Berlin-Bremen, Hamburger Wertpapierbörse,
Baden-Württembergische Wertpapierbörse, Börse Düsseldorf,
Niedersächsische Börse zu Hannover, Bayerische Börse
sector: Telecommunications Equipment
language: English

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