PRESS RELEASE EEMS GROUP: The closing of the transaction between the Chinese subsidiaries EEMS Suzhou and EEMS Technology and Wuxi Taiji Industry Co. Ltd. is completed

Further to its press release of 28 December 2012 (which may be consulted on the website www.eems.com), EEMS Italia S.p.A. ("EEMS Italia" or also the "Company") announces that the asset sale forming part of the transaction between Wuxi Taiji Industry Co. Ltd ("Taiji") and EEMS Suzhou Co. Ltd. ("EEMS Suzhou") and EEMS Suzhou Technology Ltd. ("EEMS Tech"), companies controlled by EEMS Italia through its subsidiary EEMS China Pte. Ltd., was completed today, with effective date 31 December 2012.
It is recalled that among other things this transaction provides for the sale of the assets (tangible assets, land and buildings, intangible assets and inventories) held by EEMS Suzhou and EEMS Tech at an initial price of US$ 45 million; this price is subject to an adjustment mechanism based on the results and balance sheets reported by EEMS Suzhou and EEMS Tech in the second half of 2012 and accordingly valued with reference to 31 December 2012. In this respect the agreements signed by the parties require the results and balance sheets to be audited by a leading auditing firm.
The final price will then be determined by 31 January 2013 on the basis of the adjustment mechanism and will be payable in two instalments: the first, amounting to US$ 20 million, due by 10 February 2013 and the second, which must take the price adjustment into account, by 10
March 2013.
This transaction forms part of an overall context involving the restructuring of EEMS Italia's debt, and as already announced this has the aim of improving the Group's current financial condition in a market context which it may reasonably be assumed will be affected in the near future by considerable uncertainty and presumably also by the continuation of the general recession, especially as far as semiconductors are concerned.
A part of the proceeds arising from the transaction will be used to extinguish the Chinese companies' debt with Chinese banks, to make full payment of the companies' trade payables, net of trade receivables, and to settle tax charges and expenses connected with the transaction. Given the time scale agreed for the payment of the price, as stated above, the Company was unable to pay the instalment of 8.4 million euros due at 31 December 2012 as part of the repayment of its loan from the banking syndicate (with agent bank Unicredit); it does however intend to use the balance of the amount remaining from the transaction to reduce and determine the Group's debt exposure with the banking syndicate as part of EEMS Italia's new business plan, on which work is currently taking place.
Finally, on the basis of the initial sales price and EEMS Italia's balance sheet at 30 September
2012, it is estimated that this transaction will lead to a negative effect on the parent company's equity which may be estimated in approximately 68 million euros, due to the write-down of the value of the investment and to further write downs of approximately 5 million euros in total connected with the transaction (to adjust deferred tax assets and trade receivables due from the Chinese subsidiaries).
Cittaducale (RI), 4 January 2013

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