ARBOmedia AG -

06/24/2008 - Due to reorganization ARBOmedia record a considerable slump in results


Munich, 24th June 2008. ARBOmedia AG, Munich, has according to preliminary business figures for business year 2007, suffered a concern loss of 6.5 million Euro. The concern und annual audit has not yet finished. The causes for this loss are to the found in the reorganization measures and changes of the consolidation area subsequently carried by 31st December 2006 in connection with the readjustment of the ARBOmedia Group. In the previous year the concern had a total turnover of 76.6 million Euro based on preliminary figures. Compared to the reported figures for the year 2006, ARBOmedia achieved a slight turnover increase of 1.1 million Euro. The revised turnover for the previous year amounted to 75.5 million Euro. However, considerable special effects burden the preliminary result. The concern has decided, for reasons of economy, to no longer pursue as a core business field, the business area "exclusive marketing of Turkish TV programs in Germany". This lead to deductions on active business and company values amounting to a total of 1.9 million Euro. In addition to this the continual losses considerably reduced the concern result of a consolidated development business retroactively (see below). Up to the closing date for 2007, the concern has liquid assets amounting to 6.8 million Euro. Own concern capital, including the minority interest, amounts to 4.0 million Euro up to 31st December, 2007. The management of ARBOmedia AG has decided to consolidate on the basis of a retrospective application to business year 2006 a company which was newly defined as a special purpose entity in the reporting year 2007. This concerns a development company for an IPTV television platform in which ARBOmedia is not participated. According to the perception of the management, the concern attains, when viewed economically, the majority of benefits from the business activities of this company and is therefore subject to the major risks involved. Depending on this consolidation, the comparison result given for the business year 2006 changes in the concern´s financial statement for 2007. For the reported previous year the concern now shows a deficit amounting to 6.4 million Euro as opposed to the originally indicated excess amount of 1.3 million Euro. On the one hand this is due to the negative results of the consolidation-dependent special effects amounting to 2.4 million Euro. On the other hand the restrictive IFRS regulations (IAS 32) for own capital disclosure for private companies comes into effect for the company to be consolidated. In this connection evaluation of the limited liability capital is result-effectively 5.3 million Euro within the scope of fair value. The information in the balance is made within the bonded capital. Owing to the examination of the extensive contractual foundations of the special purpose entity now included in the final statement of the concern, the annual final financial statement for the business year 2007 will be delayed. ARBOmedia will produce and publicize the final statement of the concern as quickly as possible on the basis of the established facts. About ARBOmedia: ARBOmedia AG is the largest independent marketing agency in Europe. The client portfolio for the core business – in the field of marketing of electronic media – currently encompasses more than 600 websites, 33 TV networks and 12 radio stations. In addition to this there are 60 magazines and an increasing number of out-of-home media. The wide range of media portfolio makes ARBOmedia experts in the sector of media convergence and cross-media solutions. As an independent marketing agency, the company is the market leader in strong growth countries situated in central and southern Europe. The shares for ARBOmedia AG are listed in the Prime Standard of the German Stock Exchange. Contact: ARBOmedia AG Investor Relations Akademiestraße 7 D -80799 Munich Phone:+49 (0)89.383 56-0 Fax:+49 (0)89.383 56-120 Email:ir@arbomedia.net Internet:www.arbomedia.net

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