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Samas Groep Preliminary Annual Results 2008/2009 and Trading Update

Friday 12 June 2009

Samas N.V. (Samas) today announces its preliminary (unaudited) annual results 2008/2009. In accordance with IFRS, following inevitable strategic decisions, all operating activities are accounted for as discontinued operations following either their completed divestment (Samas France and Erco Interieurbouw) in the course of the financial year under review, their completed divestment as from 1 April, 2009 (Switzerland and Benelux) or the announcement of their intended divestment (Germany and Central & Eastern Europe). Discontinued operations which are divested or which are intended to be divested after 1 April, 2009 are accounted for as assets and liabilities held for sale and valued at fair value.
Therefore, Samas today reports the preliminary (unaudited) consolidated annual results, which include the holding company and the result on the above mentioned discontinued operations. In addition, separate key financial figures are provided per discontinued operating activity. For comparison purposes, Samas also presents (unaudited) pro forma consolidated key financial figures for the financial year 2008/2009. These key figures include the holding company and all operating activities with the exception of Samas France as this subsidiary was divested by the end of the first half of the financial year under review. Throughout this release, the full year 2007/2008 pro forma consolidated financial results have been adjusted accordingly.

Background
Following a study of strategic options concluded last year, the objective was to create a more compact Samas and raise funds required for subsequent steps and restructurings. The initial strategic and operational roadmap included divestments of Samas’ French and Swiss operations combined with the sale & lease back of real estate and a subsequent refinancing using factoring. Fuelled by the ongoing economic crisis, the value of business assets declined. This affected the proceeds of required divestments and made fair real estate proceeds not attainable. Due to this and to the sharp deterioration in the office furniture markets the abovementioned objective has become less feasible, while the adverse developments in the financial markets have also further affected the ability to attract additional funding.

As a consequence, cash flow from operations became negative in the course of 2008/2009 and Samas concluded not to be able to fund required restructurings on a standalone basis. The lack of opportunities to get sufficient funding through divestments, made additional external funding for the group inevitable. Up till now, Samas has not found financial partners for the Group which would bear the costs of such restructurings and provide sufficient working capital funding for the coming period, also taking into account the uncertain current economic and market sector circumstances. The recent disposals of the Swiss and Benelux operations made for these operations new funding available.

Following these recent disposals of the Swiss and Benelux operations, and given Samas’ increasingly tight financial household, divestment of the remaining operations in Germany and Central & Eastern Europe is currently considered the most likely and desired way forward in order to secure the continuity of those activities. Availability of new funding for the operations is also a cornerstone for the intended divestment of the German operations. The preliminary (unaudited) annual results are prepared against this background.

Consolidated key financial figures (excluding Samas France)


• Net loss of 78.1 million including impairment charges, compared to a loss of 38.5 million last year. Net loss for the year consists of an operating loss of continued operations (holding company) of 7.5 million and a loss of discontinued operations of 70.7 million
• Impairment charge of 6.3 million related to a (non-cash) write down of deferred tax assets (tax losses carry forward) and (non cash) impairment charges of in total 53.5 million due to revaluation of discontinued operations ( 49.0 million) and holding assets ( 4.5 million).
• The revaluation of discontinued operations is triggered by the (intended) divestments of the operating activities leading to impairments for the Swiss activities of 10.9 million, for the German and Central Eastern European activities of 34.4 million and for Samas France of 3.7 million.
• Negative equity of 13.8 million per year-end, compared to positive equity of 64.0 million at 31 March 2008
• Net debt reduced from 47.9 million to 31.5 million as per 31 March 2009, mainly due to divestment of Samas France and sale & lease back of real estate. Including subsequent divestments of Swiss and Benelux operations afterbalance sheet date, net debt will be further reduced and amounts 22 million today (post-closing Benelux)


Consolidated annual results (continued operations = holding company)

• Net turnover down 12% to 253.5 million year-on-year
• Operating loss of 17.9 million, excluding impairments related to (intended) divestments and the result related to the divestment of Samas France
• Last quarter 2008/2009 revenues declined with over 30%, leading to an operating loss of over 5 million and a negative EBITDA of approximately 3 million for the quarter. This trend continued in the first months of 2009/2010.

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