Grammer unveils a detailed restructuring concept

Turnaround anticipated in 2000

Amberg, 24 January 2000 – The Grammer AG Group, which made a significant loss in 1999, has now unveiled a comprehensive restructuring concept. The programme has been prepared by the executive board, in collaboration with respected consultants, Roland Berger & Partner, and approved unanimously by the company’s supervisory board. On January 14, the restructuring concept has also been submitted to the members of the banking consortium. They have also put their seal of approval on it, and placed the same credit limits at Grammer's disposal for the year 2000. As no further financial resources will be required, liquidity is assured.

The package, the implementation of which will be monitored by Roland Berger & Partner, is based on three elements: operational, structural and financial, aims to increase profits and will also result in a substantially reduced capital requirement in the medium term. In order to ensure rigorous application of the restructuring programme, the board of Grammer AG is to be expanded to four people. The new member, who has yet to be appointed, will be recruited from outside the company and become chairman of the board.

Work has already begun on the first and largest element of the package, operational measures aimed at a short-term reduction in costs. Measures include improving purchasing terms and conditions, cutting other operating expenses and making cuts in human resources.