aap stops negotiations on the sale of aap Biomaterials GmbH shortly before completion - Strategy of transformation into a pure trauma company continues to be pursued consistently

aap Implantate AG / aap stops negotiations on the sale of aap Biomaterials GmbH shortly before completion - Strategy of transformation into a pure trauma company continues to be pursued consistently . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

aap Implantate AG (XETRA: AAQ.DE) today announced that negotiations on the sale of its subsidiary aap Biomaterials GmbH have been broken off at short notice. The company had reached a very advanced stage in discussions with a consortium of private equity bidders. A sale was not agreed, however, because the final transaction terms and conditions of aap Implantate AG could not be met.

"We were convinced until the end that we could close the transaction at attractive and mutual acceptable conditions but negotiations stalled at a critical point", says Bruke Seyoum Alemu, CEO of aap Implantate AG. "We were however - and still are - under no pressure to go ahead with the sale of our subsidiary. For us the focus was, from the outset, on concluding a transaction subject only to terms and conditions that are implementable in a reasonable period and reflect the right value of the company from a comparable transaction point of view. aap Biomaterials GmbH is a healthy and very profitable company which is especially characterized by strong cash flows. We will continue to grow our subsidiary and re-evaluate our options at a later date. As part of our strategy we continue to consistently pursue the objective of transforming aap Implantate AG into a leading European trauma company."

On the basis of the joint resolution by the Management Board and Supervisory Board to sell aap Biomaterials GmbH and the advanced state of the negotiations, aap Implantate AG drew up its consolidated financial statement as of December 31, 2014 on the assumption that the disposal of its subsidiary was imminent, requiring it to be stated as a discontinued operation. That led to extensive reporting requirements in the Notes and the Management Report as well as in various presentations of results in the consolidated financial statement. On the basis of all available information and in light of the breakdown of the negotiations a timely disposal of aap Biomaterials GmbH cannot be considered as likely. Consequently the subsidiary must be treated and presented as part of the aap Group. The extensive adjustments that this requires will lead to a delay in publication of the complete consolidated financial statement as of December 31, 2014. aap Implantate AG will nevertheless, as stated in the financial calendar, publish its consolidated and audited results of financial year 2014 (consolidated balance sheet, consolidated statement of comprehensive income, consolidated cash flow statement, consolidated statement of changes in equity and an overview of key financials) in the form of a press release.