Advanced Vision Technology Ltd. / Key word(s): Joint Venture 20.05.2015 08:45 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- AVT and Erhardt + Leimer GmbH announce planned joint venture May 20, 2015 Advanced Vision Technology Ltd. (AVT), 6 Hanagar St., Hod Hasharon 45241, Israel ISIN IL0010837248, WKN 931340, Prime Standard, Frankfurt Stock Exchange AVT and Erhard+Leimer GmbH (with its registered seat in Albert-Leimer-Platz1, 86391 Stadtbergen, Germany; (E+L)) announce their intent to form a strategic alliance that will provide a wider range of integrated automation solutions for the printing and converting industries. According to the companies understandings, in a first step AVT will acquire E+L's print inspection solutions and will assume the responsibility to develop and manage these solutions for both companies' customers in the Label and Packaging applications, including the corrugated segment. In return E+L will be entitled to future earn outs and a cash payment as per the set terms. As part of the agreement, Dr. Michael Proeller, E+L's CEO, will be appointed Chairman of AVT's Advisory Board and serve as an observer on AVT's Board of Directors. The expected agreement makes AVT the official inspection and press control provider for E+L, positioning AVT as responsible for the companies' mutual automatic print inspection solutions development; this includes both current products and ongoing product developments in the printing sector. Each company will then offer solutions from both AVT and E+L to all customers. While there remain outstanding issues to be resolved, the parties have agreed, in a memorandum of understanding, that they expect that these issues can be resolved in the next few weeks. Following resolutions of these issues, the parties will be able to sign definitive agreements. The transaction is not expected to have a material effect on AVT's 2015 results, but it is expected to affect positively AVT's results for 2016 and beyond. Hod Hasharon, May 20, 2015 Advanced Vision Technology Ltd. (The Board of Directors) 20.05.2015 The DGAP 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: Advanced Vision Technology Ltd. Hanagar 6 45241 Neve Ne'eman, Hod Hasharon Israel Phone: +972 9 761-4444 Fax: +972 9 761-4555 E-mail: [email protected] Internet: www.avt-inc.com ISIN: IL0010837248 WKN: 931340 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------