QSC aims at merging Broadnet into QSC
Cologne, January 30, 2007. Today, the Management Board and the Supervisory Board of QSC AG have decided to initiate the formal procedure for a statutory merger of Broadnet AG (ISIN DE0005490866) into QSC AG (ISIN DE0005137004).
Currently, QSC AG holds about 92 percent of Broadnet's share capital. As was already announced in the corporate news on November 13, 2006, the intended merger will allow the legal and organizational integration of Broadnet into the QSC group.
As part of the intended merger, Broadnet shareholders will receive new QSC shares in exchange for their Broadnet shares. QSC plans to initiate discussions with Broadnet at short notice to commence all necessary further measures. Particularly, the exchange ratio of the shares should be determined by an independent auditor.
This ad hoc announcement contains forward-looking statements pursuant to the US "Private Securities Litigation Act" of 1995. These forward-looking statements are based on current expectations and forecasts of future events by the management of QSC AG. Due to risks or mistaken assumptions, actual results may deviate substantially from those made in such forward-looking statements. The assumptions that may involve material deviations due to unforeseeable developments include, but are not limited to, the demand for our products and services, the competitive situation, the development, dissemination and technical performance of DSL technology and its prices, the development and dissemination of alternative broadband technologies and their respective prices, changes in respect of telecommunications regulation, legislation and adjudication, prices and timely availability of essential third-party services and products, the timely development of additional marketable value-added services, the ability to maintain and enlarge upon marketing and distribution agreements and to conclude new marketing and distribution agreements, the ability to obtain additional financing in the event that management's planning targets are not attained, the punctual and full payment of outstanding debts by sales partners and resellers of QSC AG, and the availability of sufficient skilled personnel.