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DEAG Deutsche Entertainment AG

ots Ad hoc-Service: Dt. Entertainment AG <DE0005513907> DEAG and LSG-Airport Gastronomiegesellschaft (catering company) to establish a joint entertainment and catering company

Berlin (ots Ad hoc-Service) -

The sender is solely responsible for the contents of this
announcement.
DEAG (WKN 551 390) and LSG-Airport
Gastronomiegesellschaft mbH (LAG) (catering company), a subsidiary of
LSG Lufthansa Service Holding AG, have agreed to establish a 50:50
catering services Joint Venture. Operating as a catering service
provider, the joint venture will initially carry out complete
handling of all catering duties connected with the DEAG Group's
theatres and venues. Through its affiliation with the LSG Group, LAG
has a strong purchasing position as well as know-how in the field of
demanding system catering. LAG has been successfully managing the
entire catering provision in DEAG's variety theatres Wintergarten
(Berlin) and Roncalli's Apollo (Düsseldorf) for several years.
The new company is set to take over catering services in all other
theatrical venues belonging to the DEAG Group (musical and variety
theatres, multi- purpose halls, open-air arenas). In addition to
this, Jahrhunderthallen- gastronomie GmbH and the canteen kitchen
belonging to it, acquired last year, is to be leased to LSG Airport
Gastronomiegesellschaft. Planned future development also includes
achieving rapid growth in the external customer base. As a part of
this, catering services are planned for top events and for public
theatres and opera houses. Altogether, a sales volume totalling over
DM 20 million is expected for the joint venture for 2002, with the
company aiming at becoming Germany's leading catering company for
entertainment and cultural events.
This joint venture brings with it optimisation of already existing
synergies within DEAG. In addition to this, further market potential
is opened up in the field of dual-utilization of its live content in
the areas of musical variety and concert events through the now
fourth spin-off (following the ticketing and leisure marketplace with
START Amadeus GmbH a subsidiary of Lufthansa and the Axel Springer
Verlag AG, the live internet entertainment portal ShowNet.de with Me,
Myself and Eye Entertainment AG and the merchandising joint venture
with Sunburst AG). DEAG's "content against equity" strategy
guarantees minimal capital expenditure set against high percentage
holdings in the new ventures.
End
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