16.02.2006 – 13:34

ESCADA AG

euro adhoc: ESCADA AG
Dividend Announcements/Distribution
ESCADA strengthens capital base for further growth - no dividend for fiscal year 2004/2005

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

16.02.2006

Aschheim/Munich, February 16, 2006 - ESCADA AG will still refrain
from paying out dividends for fiscal year 2004/2005 (closing date:
October 31, 2005). The Supervisory Board approved the relevant
recommendation of the Board of Management at its meeting today.  In
view of the future growth perspectives, this decision serves not only
to reinforce the Group’s equity base (equity ratio per October 31,
2005: 23.0%), but furthermore corresponds with the strategic targets
of continued reduction of ESCADA Group’s net debt and improving its
medium-term capital market rating. The Supervisory Board and Board of
Management agreed that these objectives take precedence over the
resumption of dividend payouts, not least because of the recent
upturn in quotations of the share prices for the benefit of the
shareholders which should be considered.

end of announcement                               euro adhoc 16.02.2006 12:59:18

Further inquiry note:

Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: viona.brandt@de.escada.com

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
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