Latest news: 51 percent of the shares in Sinar remain with Jenoptik

[olegmoiseyenko]

<b>The Jenoptik Group rescinds the sale of its 51 percent of the shares in Sinar

AG to Leica Camera AG.</b>

<br>

<br>

The sale of the Sinar shares to Leica Camera AG had been agreed and published at

short notice at Photokina in Cologne at the end of September 2006. The transfer

of the shares to Leica Camera AG was subject to contractual conditions which

have not been fully completed to date. By rescinding from the contract, Jenoptik

intends to avert damage from Sinar AG due to unclear ownership structures.

Jenoptik reserves the right to assert against Leica Camera AG claims for damage

resulting from the failed sale. At present, other business relations between

Jenoptik and Leica Camera AG are not effected by today's decisions.

<br>

<br>

The measure was supported by the market success of the new Hy6 medium-format

camera for professional photographers, which Jenoptik developed in conjunction

with partners, amongst others Franke & Heidecke. This camera, to which experts

give excellent marks, was presented by Jenoptik at this year's Photokina for the

first time. It will be distributed in the market also by Sinar, as had

originally been planned. This means that Sinar will remain part of the

activities in the digital imaging area of the Jenoptik Group.

<br>

<br>

Link to official press-release: <a

href="http://www.jenoptik.com/cps/rde/xchg/SID-26EE34DB-91B73C7C/jenoptik/hs.xsl/4582_4723.htm">

Jena, 13. December 2006</a>

<br>--

<br>Kind regards,

<br>Oleg (aka <b>oMoses</b>)

<br><a href="http://www.pbase.com/omoses">oMoses online</a>

[donald_ingram1]

Sounds like the M8 Infra-red catastrophe, has had a very serious impact on Leica's cash flow

and overall financial confidence.

[geoffrey goldberg]

Alternatively, having introduced the Dlux, Digilux, Vlux and M8 at the same time, Leica has

recognized the need to focus on its core products and not get too distracted with larger

plans.

 

As the acquisition of Sinar only made sense in the larger scheme of things (if one see Leica as

a much larger operation than present), this is probably a prudent move.

 

The only downside is that Sinar hasn't had a reasonable understanding of US distribution (and

pricing) to date. It would be a shame if the Hy6 flounders on those shoals.