16/07/2008 Ad-hoc News EN
SHS Viveon

SHS VIVEON plans to divest Spanish subsidiary

SHS VIVEON AG / Strategic Company Decision

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

o Focus on high-growth core business
o Expected cash inflow of a medium single digit million Euro amount would
be used to repay SHS VIVEON AG’s debt
o Notification of losses within the meaning of Section 92 (1) of the
Aktiengesetz (AktG – German Public Limited Companies Act) due to the
impairment of the Spanish subsidiary

Martinsried, July 16, 2008 – SHS VIVEON AG, Europe's leading provider of
customer management solutions, plans to sell its Spanish subsidiary SHS
Polar Sistemas Informáticos S.L. Currently the Board of Directors is
conducting far advanced negotiations. Therefore, the signature of a
notarized sale agreement is expected within the next weeks. In executing
this transaction, SHS VIVEON AG would successfully conclude its
restructuring and reorientation program, which it has been driving since
2003, and in future it would fully focus on its core business of customer
management. The expected proceeds from the sale, a medium single digit
million Euro amount, would primarily be used to repay the existing
convertible bonds leading to a predominant debt relief of SHS VIVEON AG.

SHS Polar recorded a total output of around EUR 34.3 million in the fiscal
year 2007. This comprised both its traditional IT consulting business based
on time and material contracts (total output 2007: EUR 18.1 million) and
the opportunistic sale of hardware components (total output 2007: EUR 16.2
million). The plan to divest SHS Polar has been a result of SHS VIVEON AG's
strategic reorientation and the continued downturn in output and earnings
of the subsidiary stemming from the fact that the Spanish market continues
to be highly competitive. The SHS VIVEON Group would record correspondingly
lower output in fiscal year 2008 as a result of the planned sale of its
subsidiary. However, the continued core business is recording substantially
double-digit growth rates and robust margins.

The expected proceeds from the sale of SHS Polar will be significantly
lower than the values of the balance sheet positions for SHS Polar in the
consolidated group accounts based on IFRS and the single-entity accounts
based on HGB of SHS VIVEON AG. Therefore, the Board of Directors will
adjust the valuation of SHS Polar in the half year accounts of SHS VIVEON
AG as of June 30, 2008 to the attainable market price. This adjustment is
made independently from the effective realization of the expected sale. As
a result, SHS VIVEON AG will record one-time expenses in an anticipated
amount of EUR 12 million in its consolidated financial statements based on
IFRS as of June 30, 2008. The single-entity financial statements include
analogous one-time expenses in an anticipated amount of EUR 8.5 million. As
a result, SHS VIVEON AG's single-entity (HGB) financial statements as of
June 30, 2008 include a loss totaling half of the share capital within the
meaning of Section 92 (1) of the AktG. The Board of Directors will report
this in line with its obligations to the Ordinary General Shareholder
Meeting scheduled for August 26, 2008. Due to the planned transaction, the
publication date for SHS VIVEON AG's half year financial report, which
originally had been scheduled for August 14, 2008, has been postponed to
August 28, 2008.

< End of ad-hoc disclosure >

SHS VIVEON AG is a pan-European business and IT consulting firm for
customer management solutions, with a range of products specializing in
customer risk management. SHS VIVEON AG, based in Martinsried (by Munich),
is listed in Frankfurt Stock Exchange’s Prime Standard and has a presence
in four European countries with vour subsidiaries and eight locations: SHS
VIVEON GmbH (D), SHS VIVEON Schweiz AG (CH), SHS Polar Sistemas
Informáticos S.L. (E) and SHS VIVEON Iberia S.L. (E). SHS VIVEON is one of
Europe’s leading providers for customer management with around 500
employees and in excess of 150 customers in 15 countries, of which 30% are
included in Fortune 500 International. SHS VIVEON’s customers include
well-known companies from the financial services, industrial and retail and
telecommunications segments, including BayWa, BMW Financial Services,
Credit Suisse, Daimler, Deutsche Telekom, Ingram Micro, RaabKarcher, o2
Deutschland, Orange, SüdLeasing and Telefonica. Further information on the
company can be found at: www.The-Customer-Management-Company.com

Wolfgang Brand
Tel.: +49 (0)89 - 747257-0
Email: Investor.Relations@SHS-VIVEON.com

cometis AG
Ulrich Wiehle
Tel.: +49 (0)611 - 205855-11
Email: wiehle@cometis.de

16.07.2008 Financial News transmitted by DGAP

Language: English
Fraunhoferstraße 12
82152 Martinsried bei München
Phone: +49 (0)89 747-257-0
Fax: +49 (0)89 747-257-10
E-mail: investor.relations@shs-viveon.com
Internet: www.shs-viveon.com
ISIN: DE0005072409
WKN: 507240
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

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