DEAG Deutsche Entertainment Aktiengesellschaft: DEAG: GOLD Entertainment GmbH with first investment in middle-of-the-road

DEAG Deutsche Entertainment Aktiengesellschaft / Acquisition/Alliance

09.08.2010 14:42

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

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DEAG: GOLD Entertainment GmbH with first investment in middle-of-the-road
and German Schlager music

  - GOLD Entertainment GmbH acquires 66.6% in Manfred Hertlein
    Veranstaltungs-GmbH

  - Acquisition secures significant market share in German-speaking
    entertainment industry

  - Joint Venture between DEAG and Sony Music offers comprehensive 360
    degree service

  - Successful tours, including Hansi Hinterseer & Musikantenstadl by
    Manfred Hertlein Veranstaltungs GmbH

Berlin, August 9, 2010. DEAG Deutsche Entertainment Aktiengesellschaft
(ISIN DE000A0Z23G6) and Sony Music Entertainment Germany have secured,
through an acquisition of their joint venture, GOLD Entertainment GmbH, one
of the leading market positions in German-speaking countries as far as
middle-of-the-road (MOR) and German Schlager music are concerned. Effective
September 30, 2010, GOLD Entertainment GmbH acquires 66.6% of the shares in
Manfred Hertlein Veranstaltungs GmbH. The parties agreed not to disclose
the purchase price. DEAG AG will finance its part of the purchase price
from the positive cash flow of its current business activities,

Manfred Hertlein has been operating successfully in the show business for
more than 30 years as a concert organizer and tour promoter. His company,
Manfred Hertlein Veranstaltungs-GmbH, with registered office in Würzburg,
is one of the market leaders in the German-speaking entertainment industry.
Furthermore, Manfred Hertlein is one of the leading local promoters in the
Rhine-Main area and hence rounds off the range of local promoters belonging
to DEAG in German metropolises: River Concerts in Hamburg, Concert Concept
in Berlin and Global Concerts in Munich. Sales revenues of Manfred Hertlein
Veranstaltungs-GmbH exceeded EUR 12 million during the last fiscal year.
The positive business development has continued in 2010. The sales revenues
will be fully consolidated on the level of DEAG from the date of
acquisition. Manfred Hertlein has undertaken to accompany the company as
managing director for at least another five years.

This investment provides GOLD Entertainment GmbH with an opportunity to
promote newcomers and organize tours with already established artists.
These include MOR music star Hansi Hinterseer and the live performance
rights for the most successful MOR television program, the legendary
Musikantenstadl on tour. Add to this, stars such as Nicole, Michelle,
Claudia Jung, Brunner and Brunner as well as newly acquired artists such as
Angelo Branduardi, Konstantin Wecker and Reinhard Fendrich. Moreover,
Manfred Hertlein Veranstaltungs-GmbH is in charge of successful show
productions such as the Palast Revue with Max Raabe - or off the music
field -, the IFMXF Freestyle Motocross World Championship 'Night of the
Jumps' and the events of 'horse whisperer' Monty Roberts in Germany,
Austria and Switzerland.

As far as business development is concerned, GOLD Entertainment GmbH
focuses on the use of innovative marketing tools, which have proven their
worth e.g. in the partnership between DEAG and Sony Music in the classical
area and the successful 360 degree approach.

DEAG contributes its many years of experience in live entertainment to GOLD
Entertainment GmbH whilst Sony Music Germany owns Ariola, the most
successful record label for German-speaking music. The joint venture and
the acquisition of the shareholding have still to be approved by the cartel
authorities.

For further enquiries:

edicto GmbH

Im Gründchen 18a

61389 Schmitten

Germany

Tel.: +49 6084 948 590

Fax: +49 6084 948 592 

Email: deag@edicto.de


Kontakt:
Edicto GmbH
Axel Mülhaus
Im Gründchen 18a
D-61389 Schmitten
Tel: +49(0)6084/94 85 90
Fax: +49(0)6084/94 85 92 
Email: deag@edicto.de






09.08.2010 Ad hoc announcement, Financial News and Press Release
distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      DEAG Deutsche Entertainment Aktiengesellschaft
              Potsdamer Straße 58
              10785 Berlin
              Deutschland
Phone:        +49 (0)30 / 810 75-0
Fax:          +49 (0)30 / 810 75-519
E-mail:       info@deag.de
Internet:     www.deag.de
ISIN:         DE000A0Z23G6
WKN:          A0Z23G
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Hamburg, München, Düsseldorf, Berlin, Stuttgart
 
End of News                                     DGAP News-Service
 
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