euro adhoc: ESCADA AG / Capital measures / ESCADA AG announces major financial and personnel decisions

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Company Information

24.06.2008

Munich, June 24, 2008 - The Board of Management and Supervisory Board
of ESCADA AG announced several major financial and personnel
decisions today. The manufacturer of luxury women´s fashions has
agreed that the Hamburg-based Herz business families Wolfgang and
Michael Herz will acquire a significant minority interest in the
company.

The decision has been taken for a cash capital increase of around 10%
(tranche 1) of the capital stock. This portion of the capital
increase will be subscribed in full by two companies of the business
families Wolfgang and Michael Herz, at an issue price of 14.00 Euro
per share and at the exclusion of the other shareholders´ preemptive
rights for this portion of the capital increase.

Another cash capital increase (tranche 2) also at an issue price of
14.00 Euro per share will follow tranche 1. The new shares from
tranche 2 will be offered to existing shareholders for subscription.
The subscription period is to start immediately after registration in
the Commercial Register of tranche 1 of the capital increase and will
last for two weeks. The subscription ratio is 2 for 19; in other
words, 2 new shares can be subscribed for every 19 shares of ESCADA
stock that the stockholder already holds. There are no plans for
subscription rights to be traded.

Over and above the exercise of all subscription rights which they
will hold, the companies of the business families Wolfgang and
Michael Herz have already pledged irrevocably to subscribe all other
shares of tranche 2 whose subscription rights have not been exercised
in the allocated exercise period.

The capital measures under tranche 1 and 2 are expected to generate a
net cash-in of 50 million Euro after transaction costs. The number of
ESCADA AG shares will increase from approximately 17.19 million
shares to approximately 20.90 million shares as a result of the
capital increase.

Additionally, ESCADA has agreed with one of the firm´s bank on an 90
million Euro credit facility with a term until December 31, 2009 that
will replace the existing 90 million Euro syndicated credit facility,
which is to lapse at the end of 2008.

The Board of Management members Mr. Jean-Marc Loubier and Ms. Beate
Rapp are leaving the Board of Management of ESCADA AG by mutual
consent, effective June 30, 2008. The Supervisory Board has appointed
Dr. Bruno Sälzer and Dr. Werner Lackas as members of the Board of
Management effective as of July 1, 2008. Dr. Sälzer has additionally
been named the new CEO. Mr. Markus Schürholz will remain as CFO.

As a further consequence of the planned changes in ownership, Messrs.
Wolfgang Herz and Prof. Dr. Reinhard Pöllath, a Munich attorney, will
join the Supervisory Board of ESCADA AG. One seat on the Supervisory
Board is currently vacant, and Dr. Martin Kuhn today resigned his
post on the Supervisory Board with immediate effect. Prof. Dr.
Pöllath assumes the Chair of the Supervisory Board from Claus
Mingers, who will remain a member of the Supervisory Board.

Important Notification: This publication is neither an offer to sell
nor an invitation to buy securities of any kind. The information
contained in these materials is for information purposes only and is
not for publication or distribution in the United States. These
materials are not an offer of securities for sale in the United
States. The securities to which these materials relate have not been
registered under the US Securities Act of 1933, as amended (the
"Securities Act"), and may not be offered or sold in the United
States absent registration or an exemption from registration under
the Securities Act. There will be no public offering of the
securities in the United States.

This document is only distributed to and aimed at (i) persons outside
the United Kingdom or (ii) professional investors as per Article
19(5) of the Financial Services and Markets Act 2000 and the
Financial Promotion Order 2005 (the "Order"), or (iii) high net
wealth companies and other high net wealth persons as per Article
49(2)(a) to (d) of the Order (these persons jointly being termed
"qualified persons"). All of the securities named herein are
available only to qualified persons and any invitation, offer or
agreement to subscribe to, buy or otherwise acquire them is made only
to qualified persons. Persons who are not qualified persons should on
no account act with regard to or in reliance on this information or
its contents.

end of announcement euro adhoc
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ots Originaltext: Escada AG
Im Internet recherchierbar: http://www.presseportal.de

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: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / regulated dealing