euro adhoc: KarstadtQuelle AG / Mergers - Acquisitions - Takeovers / KarstadtQuelle creates leading global tourism group - Thomas Cook merges with MyTravel plc

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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12.02.2007

Ad hoc release under Section 15 Securities Trading Act

KarstadtQuelle creates leading global tourism group
- Thomas Cook merges with MyTravel plc

Essen/Germany, February 12, 2007 -KarstadtQuelle AG is merging its
tourism subsidiary, Thomas Cook AG, with the leading British travel
company, MyTravel plc to create one of the leading tourism companies
worldwide with sales of approximately EUR 12 billion. The newly
formed company will be named Thomas Cook Group plc and will be listed
on the London Stock Exchange. KarstadtQuelle will hold 52 per cent in
the new company, and will fully consolidate its financials in the
KarstadtQuelle accounts. MyTravel shareholders will receive a 48 per
cent stake in the company. KarstadtQuelle will contribute the
Chairman, joint CEO and the CFO. The merger is subject to approval
from the anti-trust authorities and the shareholders of MyTravel plc
as well as the final closing of the previously announced transaction
with Lufthansa.

KarstadtQuelle shareholders benefit in several ways from the agreed
transaction. Firstly, the merger will lead to substantial cost and
revenue synergies, including the use of MyTravel tax loss carry
forwards of EUR 1.2 billion. The merger is executed without the
incurrence of any additional debt. Furthermore, the transaction will
significantly diversify the business and regional footprint of
KarstadtQuelle. Finally, Thomas Cook Group plc. will be a separately
listed entity, that will make the value of the business and the
generated synergies fully transparent. KarstadtQuelle shareholders
will also benefit from the attractive valuation multiples of public
companies in the tourism industry.

As a result of this transaction, the new KarstadtQuelle Group will
generate sales of about EUR 21 billion, of which around 50 per cent
come from the international markets. The equity ratio is expected to
increase to 25 per cent. The Group remains free of net financial
debt, taking into account the planned sale of the stake in its
Highstreet property joint venture.

Essen, February 12, 2007
The Management Board

end of announcement euro adhoc 12.02.2007 07:58:09
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ots Originaltext: KarstadtQuelle AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Branche: Retail
ISIN: DE0006275001
WKN: 627500
Index: CDAX, Classic All Share, HDAX, MDAX, Midcap Market Index,
Prime All Share
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