According to the provisions of Decisions 5/204/2000 and 3/347/2005 of the Board of Directors of the Capital Markets Committee and further to its previous announcements, the Company announces to the public the following:
1. The Company will issue a convertible bond loan for a total amount of euro 60.1 million, with five years duration, at a fixed interest rate of 3.6% and an initial conversion price of euro 10.36 per share (the ?Bonds?).
2. Out of the above Bonds, Company?s Luxembourg incorporated subsidiary, Euromedica Finance No. 1 S.A. will acquire Bonds amounting to euro 60 million, using proceeds from its simultaneous issuance of exchangeable notes for a total amount of euro 60 million, with five years duration and at a fixed interest rate of
3.6% (the ?Notes?). The payment of principal and interest amounts under the Notes will be guaranteed by the Company.
3. The Notes, to the extent that the exchange right will be exercised, will convert into Bonds which will, in turn, convert into shares of the Company.
4. The Notes will initially be acquired by funds managed by CQS (UK) LLP (?CQS?). In the context of the transaction, the international investment bank Lazard, acted as advisor to the Company.
5. CQS is a global asset manager established in 1999 managing a portfolio of market-neutral, absolute return funds. As at June 1 2007, CQS had US$7.0 billion assets under management and has regulated investment offices in London and Hong Kong and has a presence in the Channel Islands, Cayman Islands and Switzerland.
6. The above matters will be referred to extraordinary Meeting of Shareholders of the Company, which has been convened for the 30th of June 2007, for approval.