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Hi all,

Here is the news...

Loewe to acquire majority interest in MacroSystem Digital Video AG
Dec 01 2009, 07:55, Dow Jones


Loewe AG / Mergers & Acquisitions

01.12.2009

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by



DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Kronach, December 1, 2009 - Loewe AG, Kronach, which is listed in the
German selection index SDAX, has signed an agreement for acquiring a
majority interest of at least 75% of the shares of the unlisted multimedia
company MacroSystem Digital Video AG, Wetter (Ruhr). The acquisition is
expected to be closed in the first quarter of 2010. In particular, it will
be tied to acceptance of the financial planning assumptions by the
creditors' meeting and the confirmation by the competent insolvency court
as well as the final consent of the Loewe Supervisory Board. The purchase
price of the company now in 'Planinsolvenz' (self-administered insolvency
plan) is in the low single-digit million range.

In addition to its traditional core business with video editing systems
based on its own powerful software architecture, MacroSystem Digital Video
AG has in recent years built up its Home Entertainment division to include
in particular innovative product solutions such as Blu-ray hard disk
recorders for digital television. By acquiring a majority interest, Loewe
will strengthen its development competence and acquire additional expertise
in multimedia networking.


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Information and Explaination of the Issuer to this News:

MacroSystem Digital Video AG:
Established in 1991, the company produces and distributes high-quality
video and editing products as well as home entertainment products. It
presently employs 43 persons and is active in both the German and
international market. The company's sales in 2008 came to approximately EUR
5 million. Half of the employees are hardware and software engineers who
develop products aimed at integrating diverse digital consumer electronics
applications in one multimedia unit. Such applications range from
television and radio reception to film, photo archiving as well as Internet
surfing. The company has built up considerable strength in this area in
recent years.

Loewe AG:
Outstanding design, innovative technology and superior quality are features
of all products sold under the Loewe premium brand. Technological
highlights include: home entertainment systems with high-resolution picture
quality, an integrated hard disk recorder and a digital TV receiver. The
Company was founded in Berlin in 1923. Today, Loewe is a listed Group and
achieved sales of EUR 374 million and EBIT of EUR 28.5 million in 2008.
Loewe produces and distributes television sets, Blu-ray players, DVD
recorders and audio components, which are also offered as complete home
cinema solutions.



Investor Relations, Axel Gentzsch
Phone: +49 (0)9261 99.240
Fax: +49 (0)9261 99.994
Mobile: +49 (0)170 7.667.212
Email: axel.gentzsch@loewe.de

Public Relations, Dr. Roland Raithel
Phone: +49 (0)9261 99.217
Fax: +49 (0)9261 99.444
Mobile: +49 (0)171 2.005.476
Email: roland.raithel@loewe.de




01.12.2009 Financial News distributed by DGAP. Media archive at
http://www.dgap-medientreff.de and http://www.dgap.de

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Language: English
Company: Loewe AG
Industriestrasse 11
96317 Kronach
Deutschland
Phone: +49 (0)9261 99-984
Fax: +49 (0)9261 99-994
E-mail: ir@loewe.de
Internet: http://www.loewe.de
ISIN: DE0006494107
WKN: 649410
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

End of News DGAP News-Service

I'm not too sure this is positive news for us...maybe for DVC owners...

Regards.

What do you suppose that will mean for us? Little or no support or no development? That doesn't sound good. We all have a lot invested in our editing Appliances. I'd hate to think they would abandon us for the entertainment side of the business. Bob...

Hi,

Mhmm, I don't really know...that's a good question.

Personally, I can't see the interest for Loewe AG who just build high-end consumer flat TV and blue-ray players to keep the Video Editing System branch of MS in the future...

And to me, the fact that they acquire 75% of MS, which is more than just a financial participation (to say the least...), clearly means that MacroSystem has failed to get out of their insolvency situation, and selling the whole thing was the most acceptable solution (for them).

Maybe I'm a little pessimistic...and wrong...who knows ?

But, I'm sorry to say, when you write "little or no support or no development", I think we have already reached that point this year...
Especially when I read that type of post:

viewtopic.php?f=14&t=1956

Cheers.

I have no insider knowledge of this situation, so these are only my thoughts.

Other than trying to protect their existing interest in MSDE, why would Loewe AG buy more equity in a company that is failing, unless they feel they can make a success out of the company.

Often companies buy up struggling businesses to break them up and sell off the parts, which are often worth more than the whole. However, in this case I doubt that MSDE is in that league.

The bottom line is, we are all speculating, so I guess we will just have to wait and see what develops.

In the mean time I am putting off any thoughts of upgrading to a third generation unit, until I can be assured of the continuing development and support.

Ian

Right you are there Mate! I don't think we need to drop a dime till we know more. I'll be in trouble if I have to change platforms now. Kinda like putting your eggs in one basket. The people that pay the bills in my business are for the most part working Joe's like me and their money for video is limited. I have a few well heeled customers but for the most they are just trying to get along in this economy. Is the economy as bad in Europe as it is in the US? I am retired and on Social Security so I do fairly well, but I still just seem to stay one step ahead of the bill collectors. Bob...

Bob (and others) there is alreay a thread on this topic over here http://www.casablancaforum.us/viewtopic.php?f=11&t=1950

I pasted a reply there that MSUS President Eric Kloor send this morning to the Cassie Tips List.

Regards,
Chet