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Investor Relations News

Vtion Wireless Technology makes successful stock market debut

Frankfurt, 1. October 2009

The Vtion Group, one of the three leading suppliers of wireless data card solutions for mobile computer use in China, has made a successful start on the stock market. The share price was EUR 10.75 when trading began today. The initial share price corresponds to the offer price of EUR 10.75.

"The successful start we have made to stock market trading confirms the tremendous interest shown by international investors in our company and our business model," says Guoping Chen, CEO of Vtion Wireless Technology AG. "We are also delighted that so many private investors have found our story convincing."

A total of 5,175,000 shares were placed in the Vtion Wireless Technology AG IPO. 4,500,000 of these shares came from a capital increase, while 675,000 shares came from the existing shareholders in the context of a greenshoe option.

The issue volume amounts to about EUR 55.6 million including the greenshoe option. The company will be receiving net proceeds of about EUR 44.3 million from the placement. The free float will amount to about 32.4 per cent on the basis of the fully exercised greenshoe option. About 21 per cent of the issue volume (including the greenshoe option) was allocated to private investors. Private investors who have subscribed up to and including 100 shares are being allocated all of these shares. Private investors who have subscribed more than 100 shares are being allocated 100 shares plus a further 40 per cent of the number exceeding 100 shares.

The Vtion Wireless Technology AG shares are being traded in the Prime Standard at Frankfurt Stock Exchange with the ISIN DE000CHEN993.

Sal. Oppenheim jr. & Cie. KGaA is acting as lead manager Macquarie Capital (Europe) Limited is acting as syndicate bank. comdirect bank AG, DAB Bank AG and S Broker AG & Co. KG are selling agents.

 

Funding growth

The purpose of the proceeds of the issue is mainly to fund further expansion of the Vtion Group. Most of the funds received are to be invested in expansion of the research and development capacities and selective acquisitions to broaden the product range and to take advantage of our excellent relationships with the telecoms operators, while some of the proceeds will go into working capital to finance the growth strategy.

The Vtion Group was established in 2002 and has developed into one of the three leading suppliers of wireless data card solutions since then. At the present time, the Vtion Group is one of the first providers of Internet-based data services in the wireless data card field in China.


3G - the technology for the future

The Chinese mobile phone network industry is currently going through a process of market development from the second mobile phone generation to standards of the third mobile phone generation - what are known as 3G standards. The Vtion Group is expecting completion of the establishment of 3G mobile phone networks to lead to a further increase in demand for wireless data cards in China. The Vtion Group sold 1.1 million wireless data cards in the first nine months of the 2009 financial year, 86 per cent more than in the whole of 2008. 231,290 data cards were sold in September 2009, about 15 per cent more than in August 2009. The Vtion Group considers itself to be one of the few suppliers of wireless data cards that is able to produce wireless data cards for all 3G standards.

 

About Vtion

The Vtion Group is one of the three leading suppliers of wireless data cards and associated services for the mobile use of computers via broadband wireless networks in the People's Republic of China. The Vtion Group concentrates mainly on the development and sale of wireless data cards, including provision of appropriate after-sales services. The Vtion Group also supplies Internet-based data service solutions. The company has about 150 employees. The Vtion Group generated sales of EUR 39.2 million and a net profit of EUR 12.4 million in 2008.

 

For further information, please contact:

Kirchhoff Consult AG
Dr Kay Baden, tel.: +49 40 60 91 86 0, baden@kirchhoff.de
Janina Wismar, tel.: +49 40 60 91 86 50, janina.wismar@kirchhoff.de
or visit the company website at: www.vtion.de

 

Disclaimer

This publication is not an offer of any securities for sale or a solicitation of an offer to purchase any securities. The shares have been sold.

This document is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares of Vtion Wireless Technology AG (the "Shares") have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the Shares in the United States and the Shares will not be registered under the Securities Act.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

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