DGAP-Adhoc: Krones AG: Krones in mediation with American finance companies

Krones AG  / Key word(s): Legal Matter

26.01.2012 15:17

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Ad hoc press release 

Krones in mediation with American finance companies 

Neutraubling, 26 January 2012 - The US company of the Krones Group, Krones
Inc., Franklin/Wisconsin (USA), and Krones AG, Neutraubling (Germany) have
taken a first step towards resolving the legal disputes that have been
ongoing since October 2008, triggered by claims for damages by several
American financial service providers, a group of  hedge funds and a
liquidation trustee.

The lawsuits are related to the financial scandal involving the bankruptcy
of the US company Le-Nature's, whose former directors have meanwhile been
convicted of fraud. In 2005/2006, Krones produced, delivered and
successfully commissioned filling lines representing a contract volume of
approximately 100 million US-dollars for the Le-Nature's facility in
Phoenix/Arizona (USA).

Several plaintiffs have entered into a mediation process with Krones, to
explore options for ending the proceedings. Although in Krones' view the
opposing parties' demands are unfounded, Krones' US attorneys have advised
to continue mediation, also with regard to the special risks entailed by
the American legal system.

Initial assessments from the mediation process indicate that the
possibility cannot be ruled out that potential settlements developing from
the mediation could have an adverse effect on the Krones Group's profit
situation, quantified as a low-to-medium double-figure million US-dollar
amount.

Your contact person:
Olaf Scholz
Senior Vice President Investor Relations Krones AG
Tel.: +49 9401-70 1169
Email: olaf.scholz@krones.com


26.01.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Krones AG
              Böhmerwaldstraße 5
              93073 Neutraubling
              Germany
Phone:        +49 (0)9401 701169
Fax:          +49 (0)9401 709 1 1169
E-mail:       investor-relations@krones.com
Internet:     www.krones.com
ISIN:         DE0006335003
WKN:          633500
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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