Axel Springer AG / Key word(s): Disposal/Strategic Company Decision 25.07.2013 09:35 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc announcement pursuant to § 15 WpHG (German Securities Trading Act) Axel Springer AG will sell its regional newspapers as well as its TV program guides and women's magazines to Funke Mediengruppe and establish joint ventures for distribution and advertising marketing Axel Springer AG has agreed with Funke Mediengruppe GmbH & Co. KGaA to sell its regional newspaper groups Berliner Morgenpost and Hamburger Abendblatt as well as its TV program guides and women's magazines to Funke Mediengruppe GmbH & Co. KGaA. In this regard, Axel Springer AG and Funke Mediengruppe GmbH & Co. KGaA have further agreed to establish joint ventures for the distribution and marketing of print and digital media offerings. Axel Springer AG and Funke Mediengruppe GmbH & Co. KGaA have concluded a legally binding preliminary agreement in this regard today. As soon as Funke Mediengruppe GmbH & Co. KGaA will have agreed the necessary financing, Axel Springer AG and Funke Mediengruppe GmbH & Co. KGaA will enter into final contracts in autumn 2013 to implement the transaction. The transaction is subject to approval by the competent authorities under merger control and antitrust law, which is not expected to be obtained before the end of 2013. The regional newspapers and magazines will be sold with economic effect as of 1 January 2014. The purchase price is EUR 920 million in total on a cash and debt free basis. Of this amount, EUR 660 million will become due for payment to Axel Springer AG at the closing of the transaction, but at the latest on 30 June 2014. Regarding the remaining purchase price, Axel Springer AG will grant Funke Mediengruppe GmbH & Co. KGaA a vendor loan with a term of several years. In the fiscal year 2012, the regional newspaper groups as well as the TV program guides and women's magazines contributed to the EBITDA of the Axel Springer Group in the amount of EUR 94.8 million and to its revenues in the amount of EUR 512.4 million. By establishing joint ventures, Axel Springer AG and Funke Mediengruppe GmbH & Co. KGaA will group their existing operations and their resources for the marketing and distribution of print and digital media offerings. For Axel Springer AG, the transaction is an additional important step in implementing its strategy to become the leading digital media group. Berlin, July 25, 2013 Axel Springer AG Axel-Springer-Straße 65 D-10888 Berlin Investor Relations Contact: Claudia Thomé +49 (0)30 2591-77421 [email protected] 25.07.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Axel Springer AG Axel-Springer-Straße 65 10888 Berlin Germany Phone: +49 (0)30 2591-77421 Fax: +49 (0)30 2591-77422 E-mail: [email protected] Internet: www.axelspringer.de ISIN: DE0005501357, DE0005754238 WKN: 550135, 575423 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------