Eckert & Ziegler Ends Legal Dispute Surrounding Major Project Receives New Order Valued at 14 Million Euro

(Ad hoc press release)

Berlin, 11.05.2001. On Thursday Eckert & Ziegler AG reached agreement with a major client in respect of a controversial production line project and on a one-off payment of approximately 2.5 million EUR as a compensation for work rendered. The project had become a bone of contention in winter 2000 when the client, as a result of changed market conditions, cancelled an order for a production line for permanent implants that had been placed two years before, and refused to confirm acceptance and effect payment of the completion instalments. As a result of the refusal to pay the final instalment, Eckert & Ziegler AG had been forced to issue a profit warning last year. In the agreement the client now also waived all rights of usage in respect of the disputed equipment. As a result, Eckert & Ziegler can now itself use the line for the production of permanent low-level radioactive palladium implants. These devices are used for the treatment of prostate tumours. "This settlement represents a fair compensation for Eckert & Ziegler AG" explained Dr. Andreas Eckert, President and CEO of the company. "Moreover, with the line conflict resolved, both parties can now again concentrate on joint opportunities in the European market. As a consequence, the partner has awarded to Eckert & Ziegler, in addition to the payment of compensation, a five-year contract to supply iodine implants, valued at 14 million EUR. We are confident that this will further strengthen our leading position in the European market for cancer treatment radiation sources."

The Board of Directors