euro adhoc: Hans Einhell AG / Mergers - Acquisitions - Takeovers / Einhell Group sells weka Holzbau GmbH to BPE Private Equity

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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20.12.2006

"Ad-hoc announcement according to § 15 WpHG"

The Einhell Group plans to sell its shares of weka Holzbau GmbH in
D -17034 Neubrandenburg to a fund of BPE2 Private Equity GmbH & Co.
KG, administered by BPE Private Equity GmbH, Hamburg upon approval
of the supervisory board.

weka Holzbau GmbH developed to a leading company in the German
market for prefabricated kits made of wood for housing & gardening.
The company provides entire concepts. It benefits from the trend
"wood in the garden" and from the ongoing boom of the wellness
branch. Einhell is sure that the sucessful business of weka Holzbau
GmbH will be even more strengthened by the new partnership at long
sight.

The transaction will be finished until the year's end depending on
the receipt of payment of the purchase price. The group will receive
cash of about 10 million Euro from this disposal. The final
purchase price can first be determined exactly after the approval of
the annual accounts of weka Holzbau GmbH.

This decision is taken in order to enforce the targeted group strategy of
orientation towards the product groups power tools and garden equipment. The
company wants to raise futher the core competence in these groups and to
concentrate on the customer group of do-it-yourselfer, home constructors and
hobby gardener. The aim is the expanding of the listing business at
international DIY chains.
Also investments in the development department and the extension of the
international service network can be increased. Additionally the expansion in
Eastern Europe, Asia and Latin America should be forced increasingly.

By the disposal of weka Holzbau GmbH the capital commitment will
be reduced significantly and the liquidity of the Einhell group will
be increased further. So an improvement of rating key figures can be
reached.

From the actual point of view the Einhell group looks forward to
realise sales of about 400 million Euro for the year 2007 (excluding
weka Holzbau GmbH). This consolidation of the group structure should
lead to a further stabilization of the profit margin.

Landau/Isar, 20th December 2006

The board of directors

end of announcement euro adhoc 20.12.2006 21:30:51
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ots Originaltext: Hans Einhell AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Helmut Angermeier
Prokurist
Telefon: +49 (0)9951-942 166
Fax: +49 (0)9951-942 293
E-Mail: angermeierh@einhell.de

Branche: Wholesale
ISIN: DE0005654933
WKN: 565493
Index: CDAX
Börsen: Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade
Frankfurter Wertpapierbörse / regulated dealing/general
standard