DGAP-News

_wige MEDIA AG builds up new sporttotal.tv business, along with its international project business, and sells _wige BROADCAST and _wige SOLUTIONS

DGAP-News: _wige MEDIA AG / Key word(s): Strategic Company Decision/Disposal
_wige MEDIA AG builds up new sporttotal.tv business, along with its
international project business, and sells _wige BROADCAST and _wige
SOLUTIONS

08.12.2016 / 12:01
The issuer is solely responsible for the content of this announcement.

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_wige MEDIA AG builds up new sporttotal.tv business, along with its
international project business, and sells _wige BROADCAST and _wige
SOLUTIONS

- _wige MEDIA AG receives cash inflow of EUR 1.6 million

- Burden on broadcasting eased by an average EUR 0.6 million from 2017
onward

- _wige releases capital in order to invest in high-margin growth

Cologne, December 8, 2016. In the future, _wige MEDIA AG intends to grow in
the scalable digital business, in the high-margin international project
business, as well as in business with live events. Through a partnership
with the German Football Association (DFB), the company intends to equip
German amateur football clubs with special video technology that enables
games to be transmitted live in a high quality and fully automatically
using the new "sporttotal.tv" platform. The company will therefore sell the
loss-making business with TV production for domestic and international
broadcasters, associations and organisers, as well as the low-margin and
capital-intensive media technology business. Today _wige MEDIA AG signed
the respective agreements. Under these agreements - and as soon as the
conditions precedent customary in the market have been fulfilled - _wige
BROADCAST gmbh (TV production) will be sold to Wolfgang Reeh and the assets
of _wige SOLUTIONS gmbh (media technology) to wige SOLUTIONS GmbH & Co. KG,
a company newly founded by Thomas Riedel together with a partner.

Broadcast and media technology concentrated with top providers in the
market
The purchase price for the sold operations amounts to EUR 4 million in
total, EUR 3.5 million of which for _wige SOLUTIONS gmbh and EUR 0.5
million for _wige BROADCAST gmbh. _wige MEDIA AG is likely to receive EUR
1.6 million in cash from the transaction. At the same time, the workforce
of the _wige Group will decline by 115 staff members to around 215. As from
2017, the disposal of the two sets of operations will generate a
sustainable positive liquidity effect that averages around EUR 1.8 million
a year in investment that is no longer necessary. This will considerably
reduce capital requirements. For instance, in the first half of 2017 alone,