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ESCADA AG

EANS-Adhoc: ESCADA AG
Bond exchange offer does not reach the necessary acceptance rate — Rights issuance is cancelled

  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
Restructuring
11.08.2009
Munich, August 11, 2009 - ESCADA AG´s exchange offer to bondholders 
of its 2005/2012 Senior Notes reached an acceptance level of 46% 
following the expiration of the tender deadline (August 11, 3:00 p.m.
CEST). The minimum acceptance ratio of 80% was not achieved. As a 
result, the planned 29.05 million euros rights issuance will not be 
consummated as it depended on the placement guarantee by certain 
shareholders and investors, which was conditioned upon reaching an 
80% acceptance ratio in the exchange offer. In addition, the 
commitment to maintain the existing bank guarantee line of 13 million
euros has lapsed for the same reason.
As previously communicated in the ad hoc release on August 10, 2009, 
the Board of Management intends to file for the opening of insolvency
proceedings due to imminent illiquidity of ESCADA AG this week. A 
meeting of the Supervisory Board of ESCADA AG has been scheduled for 
tomorrow, Wednesday, August 12, 2009. At the meeting, the Board of 
Management will report on the failed financial restructuring and 
further steps. The Board of Management plans to present its ongoing 
operational restructuring plan to the preliminary insolvency 
administrator.
end of announcement                               euro adhoc

Further inquiry note:

Investor Relations
Yara Kes
Tel.: +49 (0) 89 9944 1336
E-mail: yara.kes@de.escada.com

Presse:
Frank Elsner Kommunikation für Unternehmen GmbH
Frank Elsner
Tel.: +49 - 54 04 - 91 92 0
Email: info@elsner-kommunikation.de

Not for release, publication or distribution in the United States, Australia,
Italy Canada or Japan.

This ad-hoc disclosure is not an offer for sale of securities in the United
States. Securities may not be sold in the United States absent registration with
the United States Securities and Exchange Commission or an exemption from
registration under the U.S. Securities Act of 1933, as amended. ESCADA AG does
not intend to register any part of any offering in the United States or to
conduct any public offering of securities in the United States.
This communication is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (iii) high net worth
companies, and other persons to whom it may lawfully be communicated, falling
within Article 49(2)(a) to (d) of the Order (all such persons together being
referred to as "relevant persons"). The securities are only available to, and
any invitation, offer or agreement to subscribe, purchase or otherwise acquire
such securities will be engaged in only with, relevant persons. Any person who
is not a relevant person should not act or rely on this document or any of its
contents.
The exchange offer is not extended to any persons (natural or legal) resident in
the Republic of Italy. The exchange offer is not being made, directly or
indirectly, in the Republic of Italy. The exchange offer and the prospectus has
not been submitted to the clearance procedure of the Commissione Nationale per
le Societa e la Borsa ("CONSOB") pursuant to Italian laws and regulations.
Accordingly, neither the prospectus, this ad-hoc disclosure nor any other
documents or materials relating to the exchange offer or the securities may be
distributed or made available in the Republic of Italy.

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: CDAX, Classic All Share, Prime All Share
Börsen: Berlin / Open Market
Hamburg / Open Market
Stuttgart / Open Market
Düsseldorf / Open Market
Frankfurt / regulated dealing/prime standard
München / regulated dealing

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