euro adhoc: KarstadtQuelle AG / Mergers - Acquisitions - Takeovers / KarstadtQuelle acquires Home Shopping Europe - Steady sales growth and double-digit EBITDA margin planned

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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09.05.2007

Essen, Germany May 9, 2007. KarstadtQuelle AG, Essen, is acquiring
the shopping channel Home Shopping Europe GmbH & Co. KG (HSE24). The
corresponding contractual agreement was signed today with the
previous owner, IAC/InterActiveCorp, New York/USA.

Through this acquisition, the KarstadtQuelle Mail Order Group
Primondo is resolutely setting forth its new strategic orientation.
Teleshopping optimally extends the multichannel offer from Quelle and
makes Quelle the leading mulitchannel provider in Germany. The
teleshopping market in Germany generates sustainable strong growth.
HSE24 has already taken advantage of this trend with great success.

With HSE24, Primondo is targeting a steady growth in sales as well as
a double-digit EBITDA margin. In addition, Primodo plans to extend
the presence of home shopping throughout Europe in the coming years.
The markets in Central and Eastern Europe, and Russia in particular,
are especially attractive.

The purchase price for the acquisition of HSE24 will be raised in the
form of KarstadtQuelle Treasury shares. For the first time,
KarstadtQuelle is making use of its significantly increased share
price for acquisitions.

Initially, shares valued at EUR 145 million will be provided for the
purchase price. The final number of shares provided will be
determined at the closing of the transaction.

A possible further payment in the amount of EUR 55 million after
three years is linked to the KarstadtQuelle share price. Based on the
share price of the stock at closing, the additional payment will no
longer apply if a specific target value is achieved within three
years. On the basis of the current share price, the target share
price lies at c. EUR 38.60; the exact target share price will be
determined at closing as well.

The agreed payment of the purchase price in the form of
KarstadtQuelle shares shows the strong confidence of both contract
partners in the further development of KarstadtQuelle shares. No
additional net financial debt will arise for the KarstadtQuelle Group
as a result of the takeover. The Group still possesses a high level
of strategic leeway.

HSE, located in Ismaning near Munich, began in 1995 as the first
shopping channel in Germany and has experienced considerable growth
since that time. In 2006, net sales of EUR 286 million were achieved
with around 1.3 million customers. HSE24 successfully combines TV and
Internet shopping under one roof. The shopping channel reaches over
39 million households in Germany, Austria and Switzerland via cable
and satellite.

The transaction is subject to approval by the anti-trust authorities.

The Board of Management

end of announcement euro adhoc 09.05.2007 08:02:44
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ots Originaltext: KarstadtQuelle AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Karstadt Quelle AG
Investor Relations
Tel. +49(0)201 727-9816
Fax: +49(0)201 727-9854
E-Mail: investors@karstadtquelle.com

Branche: Retail
ISIN: DE0006275001
WKN: 627500
Index: CDAX, Classic All Share, HDAX, MDAX, Midcap Market Index,
Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
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