euro adhoc: JoWooD Productions Software AG / JoWooD announces time table for entry of a strategic partner for development of the US market (E)

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

At the annual shareholder’s meeting on April 22, 2004 JoWooD presented its medium-term strategy which laid particular emphasis on the improvement of the company’s sales performance in the US market. The previous business year saw a further increase in JoWooD’s already significant market share in Germany and the adjacent European regions. With a 4.22 % market share JoWooD ranks # 5 (2002: # 6) in the market for PC entertainment software. JoWooD’s rather small share of the global market for PC entertainment of about 0.8% and the fact that the company has so far targeted the console market with only limited effort explain why JoWooD’s share of the worldwide market for entertainment software has, up to now, not exceeded the per mill range. By restructuring its distribution JoWooD managed to increase its US result significantly from losses in the previous years to over EUR 2m, (unadjusted margin), in 2003. However, with US revenues of below EUR 3m, JoWooD’s sales in the industry’s biggest single market still remain well below the company’s potential.

In order to reap the true potential of it’s proven product portfolio, JoWooD is seeking a strategic alliance with partner with a strong market presence in the US. This partnership will go hand in hand with the partner’s acquisition of a non-controlling stake in JoWooD by way of a capital increase, and the co-publishing of the other partner’s product portfolios by both partners. In addition, JoWooD will intensify its own international marketing activities. The terms for the capital increase will be decided at an extra ordinary shareholder’s meeting on June 15, 2004. The capital increase will be conducted in two tranches. The first tranche will be open only to the strategic partner and will exclude subscription by existing shareholders. The second tranche will be offered to existing shareholders at equal terms. The capital increase is scheduled for the second half of June and will be managed by Capital Bank - GRAWE Gruppe AG.
The primary objective of the capital increase is to forge an alliance with a strategic partner. Therefore, the issue price shall not take into account recent short-deviations in the stock price.
The strategic partner and details of the capital increase will be announced at a press conference on May 26, 2004.

Further inquiry note:
JoWooD Productions Software AG
Dr. Michael Pistauer, Vorstand.
Karin Kraberger, Investor Relations
Tel.: +43 (0)3614 2966 1015
Tel: 0043 3614 2966-1015
FAX: 0043 3614 2966-1023

Emittent: JoWooD Productions Software AG Bahnhofstrasse 22 AT-4802 Ebensee Tel: 0043 3614 2966-1015 FAX: 0043 3614 2966-1023 Email: WWW: ISIN: AT0000747357 WKN: 074735 Indizes: ATX Prime, ViDX, WBI Börsen: official dealing Wiener Börse AG; free trade Berliner

end of announcement euro adhoc

Wertpapierbörse, Bayerische Börse, Baden-Württembergische Wertpapierbörse, Frankfurter Wertpapierbörse
Branche: Software
Sprache: Englisch