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DEAG Deutsche Entertainment AG

ots Ad hoc-Service: DEAG AG <DE0005513907> STELLA Entertainment AG listed on GEREGELTE MARKT in December Double figure million profits already this year

Berlin (ots Ad hoc-Service) -

Ad hoc-announcement edited and sent by DGAP. The sender is solely
responsible for the contents of this announcement.
In view of the successful turnaround
and in order to accelerate further growth, DEAG has decided to launch
its musical business on the stock market.In order to achieve this,
DEAG (WKN 551 390) has acquired 79% of the shares of Hegener + Glaser
AG, Munich (WKN 604 070), which has sold its business operations with
effect to the 30th of August 2000 and which is listed on the
Geregelte Markt of the Bavarian stock exchange in Munich and the
Hamburg stock exchange.
At an extraordinary general meeting of the Hegener + Glaser AG at
the beginning of December 2000, DEAG will propose to rename this
company STELLA Entertainment AG. A motion will also propose that the
100% subsidiary of DEAG, the BMM (Broadway Musical Management GmbH)
be completely introduced into the STELLA Entertainment AG in the
course of a capital increase by means of cash and non-cash capital
contributions.
BMM has acquired those parts of the insolvent STELLA and its
daughter companies which were profitable or had a high potential to
be restructured. This comprises the German-language productions of
"Phantom of the Opera", "Cats", "Starlight Express", "Disneys
Hunchback of Notre Dame", "Beauty and the Beast", "Dance of the
Vampires" and also the STELLA Musical Reisen GmbH. On the basis of
current figures and ticket sales to date for the current year, BMM
will have earnings double figure million German marks (EBITDA) for
its first nine months of operation through till the end of the
business year 2000.
The new development will mean that following a successful
turnaround within only nine months of its acquisition, STELLA
Entertainment AG, in which DEAG will continue to maintain its
majority holding, will have direct access to the capital market.
According to intentions of the new majority shareholder the Chief
Executive Officer (CEO) will become Klaus von der Heyde, CFO Thomas
Nedtwig, and COO will become Wolf Dieter Werner. The Chair of the
Supervisory Board of the STELLA Entertainment AG will be Peter
Schwenkow, CEO of DEAG. The quotation at further stock exchanges is
in preparation.
End
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