First subscription period for convertible bond completed positively, Management subscribes for EUR 4 million (ad hoc)

08. May 2002

In the first issuing phase, RHI was able to place 80% of the convertible bonds tranches A and B of a total nominal value of EUR 144.7 million, which had been available for subscription since April 8, 2002 in the context of the capital restructuring of the RHI group. Thus a total of EUR 115.2 million was subscribed for. This convertible capital strengthens the beneficial equity capital of the RHI group further according to plan.

The proceeds from the emission will be fully used to repay bank liabilities; the banks participating in the RHI Group’s capital restructuring will also receive a special repayment in 2002 on the repayment plan agreed within the framework of restructuring due to the positive liquidity deelopment.

Of the volume placed, EUR 100 million are accounted for by banks, which, in addition to the EUR 72.4 million reserved of tranche A, bought a further EUR 27.6 million of tranche B. The Board of Management of RHI AG subscribed for a total of more than EUR 4 million, convinced that the group will be restructured quickly and sustainably.

The volumes of tranche B in the amount of EUR 29.5 million, which were not subscribed for in the now completed first phase, are still selectively on offer for interested investors in the form of a private placement.