Germany1 to acquire AEG Power Solutions

For over 60 years, AEG PS has been a world leading power Electronics Company built on world class German and pan European engineering and operational expertise providing market leading technology from its historical base in Belecke, Germany and throughout Europe. With 1,600 employees across 16 countries, AEG PS provides precision, mission critical, highly engineered power electronics solutions for industrial, renewable and infrastructure applications. AEG PS is the world

leading supplier of power controllers to manufacturers of polysilicon, a major component of the solar energy industry. In 2008, AEG PS generated revenues of €343 million and EBIT of €56 million.

The transaction marks the re-emergence of the AEG name, an iconic symbol of German industrial strength, back to the public markets. The highly experienced management team is led by Bruce Brock. Over the past few years AEG PS has experienced tremendous growth, built a business anchored by German engineering expertise and created a world class, global sales, marketing and distribution platform. The management team will continue in their respective roles post transaction. Post acquisition, AEG PS will be well capitalised to support its future internal and external growth. The current owners, funds managed by Ripplewood Holdings, along with Management and certain other investors, will remain significant shareholders with, in the aggregate, a 33% fully diluted equity stake post closing.


AEG PS has met and consulted its employee representatives of the business units to inform them of this transaction as required by local regulations. Germany1 will submit the acquisition for final shareholder approval at its annual general meeting to be held on 12 August 2009. Germany1 has already entered into irrevocable undertakings or other similar arrangements with some of its shareholders who, in the aggregate, hold in excess of 70.1% of our public shares, pursuant to which they have agreed to vote their public shares in favour of the acquisition and related resolutions and/or not request redemption of their public shares. Therefore, assuming these shareholders vote in accordance with their commitment, the acquisition will be approved at the annual general meeting even if our remaining shareholders vote against the acquisition. Upon completion, the Germany1/AEG PS Board of Directors will consist of Executive Members Bruce Brock and Robert Huljak and Non executive Members Prof. Roland Berger as Chairman, Prof. Mark Wössner, Timothy Collins, Leonhard Fischer and Keith Corbin.

On July 2008, Germany1 raised €250 million in capital through an IPO on Euronext in order to make an acquisition within two years. Germany1 has been the best performing SPAC in the world. Florian Lahnstein, CEO of Germany1 said, “We are extremely satisfied to have found in AEG PS a company that matches our investment criteria. When we raised the SPAC in 2008, we set out to find aGerman hidden champion and that is exactly what we have done. AEG PS is well positioned for growth in the renewable energy and industrial markets and we look forward to supporting the business as it continues in its development.” Upon completion, the Germany1 team intends to return to the public markets to raise additional European SPAC’s.