Sangerhausen, 22 August 2014 - Today, MIFA Mitteldeutsche Fahrradwerke AG (WKN share: A0B95Y / ISIN share: DE000A0B95Y8, "MIFA"), One Square Advisory Services GmbH, the Joint Representative of the holders of the 2013/18 MIFA bond (WKN bond: A1X25B / ISIN bond: DE000A1X25B5, "MIFA bond") as well as OPM Global B.V., a subsidiary of Indian bicycle manufacturer Hero Cycles Ltd. ("HERO"), have signed a basic agreement relating to the financial restructuring of MIFA.

Accordingly, the holders of the MIFA bond are being called to vote concerning a reduction of EUR 15 million to the main receivable of the MIFA bond in a nominal amount of currently EUR 25 million to subsequently EUR 10 million by a so-called vote without attendance. The difference of EUR 15 million is to be added to MIFA's equity in a debt for equity swap. In addition, the MIFA bond shall be provided with a furnishing of additional security in the value of EUR 7.5 million through certain assets.

The bondholders are also to be called to decide concerning a waiver of the approximately EUR 1.9 million of interest claims that have arisen between 12 August 2013 (inclusive) and 11 August 2014 (inclusive). As with the aforementioned differential amount, the accrued interest is to be added to MIFA's equity. In addition, a proposal is being put to the bondholders to postpone the final maturity date of the MIFA bond until 12 August 2021 (instead of 12 August 2018), accompanied by a reduction in the annual interest rate from currently 7.5 percent to a restructuring interest rate of 1 percent per annum for the period between 12 August 2014 (inclusive) and 11 August 2021 (inclusive).

As consideration for the reduction in the main receivable of the MIFA bond, and following a simplified reduction in the share capital in the relation of 1:100 ("capital cut") that has to be resolved by an Extraordinary General Meeting, the bondholders are to receive the entitlement to purchase New Shares which are to be issued as part of the debt for equity swap under exclusion of the subscription rights of the shareholders. The debt for equity swap under exclusion of the subscription rights of the shareholders has to be resolved by the Extraordinary General Meeting. It is planned that a processing agent first subscribes for and underwrites the New Shares.

According to the current stage of planning, OPM Global B.V. shall subscribe and underwrite a cash capital increase in a further step. In the course of a further cash capital increase, it is planned to offer New Shares also to the existing shareholders and the bondholders. Thereby OPM Global B.V. has committed itself to subscribe and underwrite shares that will not be subscribed by existing shareholders and bondholders. As part of the cash capital increases, total gross issue proceeds of at least EUR 15 million are to accrue to MIFA. Following the successful implementation of planned capital measures, OPM Global B.V. and other new shareholders will be held around 89 percent at total number of MIFA's shares outstanding, around 10 percent will be held by bondholders and 1 percent by existing shareholders.

The agreement that has been concluded between MIFA, the bondholders' Joint Representative, and OPM Global B.V. is subject to various suspensive conditions. The implementation of the agreed reorganisation structure is to be concluded by March 2015.

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