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BARCO Graphics and CVC Capital Partners Break Off Negotiations

Press release from the issuing company

Kortrijk, - BARCO and CVC Capital Partners have decided to stop negotiations about an MBO of Barco Graphics. Recent evolutions in the graphic industry prevented BARCO and CVC from reaching an agreement. However, BARCO intends to further increase the shareholder value in a permanent way. Therefore, after BarcoNet's planned listing at the latest on November 13, 2000, the strategy towards independence of the remaining activities will be continued. For this purpose, the available funds will be used in order to develop the opportunities presenting themselves in these activities. In view hereof, the organizational autonomy of Barco Graphics will be further developed and the product innovation, as started at DRUPA 2000 and EPC 2000, will be continued. Barco Graphics, with centers of competence in Belgium, the United States, Singapore and Japan, consists of four business units: Packaging Systems, Commercial Printing Systems, Industrial Printing Systems and Electronic Tooling Systems. Over the first half of 2000 these four business units together realized a turnover of 80 million euro. The activity currently employs 1000 associates worldwide. The Packaging Systems Business Unit focuses on high-productivity design and preproduction solutions for various packaging industry segments such as folding carton, flexible packaging, corrugated, plastic cups, metal cans, labels and point-of-purchase. The Commercial Printing Business Unit offers customers in the book, catalog, magazine, and commercial printing markets state-of-the-art digital prepress workflow solutions, Computer To Film and Computer To Plate output devices. It also offers digital document printing components to major OEM's. The Industrial Printing Business Unit focuses on the.factory, a new industrial digital printing press, with applications in the decorative & textile printing market, ceramics, and security printing. The Electronic Tooling Systems business unit is a leading vendor to the electronics manufacturing industry offering engineering solutions for generating and managing all tools required for the production of PCB's.

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