Mory Group: Press release from Alain Breau

MORY confirmed the launch of an operation aiming to strengthen the equity of the holding, after re-capitalization of its subsidiary MORY TEAM late last December.

This new operation, agreed by all MORY group shareholders, totals EUR 35M split as follows:

– EUR 15M capital increase, raising from EUR 28 M to EUR 43 M
– EUR 20M of subordinated convertible bonds, of near common equity nature.

At the end of the operation, which will take place over the next few weeks, managers will hold 65 pct of the capital and half of the convertible bonds, whilst the two investment funds (Bridgepoint and Barclays) that support the company since 1999 will hold 35 pct of the capital and the other half of the convertible bonds.

Through this transaction, shareholders renew their support and confidence in the future of MORY group, especially for 2008 which will see consolidated sales exceed 1 billion euros, i.e. twice that of 2000.

Recent securing of major contracts in transportation and logistics, as well as growth of overseas subsidiaries, along with tariff increase needed on the French market will allow MORY group to return in 2008 to profitability rates it had in the years 2000 to 2005 (i.e. 2 pct of EBIT/turnover).

As previously announced, in order to further strengthen their commitment to their company’s performance, group profit centre managers will then be sought to enter the capital of the group main operating subsidiaries.

Through these legal and financial operations, MORY group intends to establish the foundation of a 3 year development plan (2008-2010) which will allow the group to continue expansion in France and abroad in transportation and logistics, whilst ensuring its independence and home control.

This 3 year plan will be presented and discussed in detail in April.