13.10.2005 – 16:39

PrimaCom AG

euro adhoc: PrimaCom AG
other
PrimaCom entered into a Settlement Agreement with its Second Secured Lenders

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

13.10.2005

PrimaCom is pleased to announce that it has today entered into a
Settlement Agreement with its Second Secured Lenders under a Facility
Agreement dated 26 March 2002 ("SSFA").

This follows a judgment by the District Courts of Mainz (on the 13
September 2005) and an oral hearing in Frankfurt (on 16 September
2005) in which both courts clearly stated that they have no
jurisdiction to hear the matters put before them which were subject
to the exclusive jurisdiction of the English courts as provided for
in the SSFA.

Under the Settlement Agreement PrimaCom has agreed to withdraw the
litigation initiated by it against the Second Secured Lenders.  Once
this and certain other conditions have been satisfied on or before 30
November 2005 the Settlement Agreement provides for:

- the sale of PrimaCom’s Dutch business, Multikabel; - the
refinancing and repayment in full of the existing Senior Facilities;
- a judgment in favour of the Second Secured Lenders to be obtained
in the English courts in the amount of EUR 425 million; - the
settlement of all amounts due and payable under the SSFA including
the judgment of the English Courts referred to above by payment by
PrimaCom of the amount of EUR 375million to the Second Secured
Lenders; - the resolution of all litigation outstanding between
PrimaCom and the Second Secured Lenders; and - the giving of mutual
waivers and releases between PrimaCom and the Second Secured Lenders.

Mr Preuss for PrimaCom said: "The PrimaCom Management is convinced
that with this Agreement it achieved the best possible settlement
with Second Secured Lenders."

A spokesperson for the Second Secured Lenders said: "We are pleased
that once the Settlement Agreement is fully implemented matters
between the Second Secured Lenders and Primacom will be resolved.
The favourable outcome of the court proceedings in Mainz and
Frankfurt, PrimaCom’s agreement to withdraw the German litigation and
the releases from future claims given by PrimaCom confirm the
validity of our claims under the SSFA. We believe this outcome to be
in the best interests of the Company’s stakeholders."

PrimaCom AG
Management Board

end of announcement                               euro adhoc 13.10.2005 16:04:56

Further inquiry note:

Investor Relations
Telefon: +49(0)6131 944 522
E-Mail: investor@primacom.de

Branche: Telecommunications Equipment
ISIN: DE0006259104
WKN: 625910
Index: General Standard
Börsen: Frankfurter Wertpapierbörse / regulated dealing
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Börse Düsseldorf / free trade
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