Lifemotion S.A., Via Pocobelli 14, 8615 Melide, Switzerland, company registration no. CHE-146-232-662, advised HIRSCH Servo AG that on the basis of the stock purchase agreement of December 23, 2013 it acquired stock from Kurt HIRSCH HOLDING GmbH equivalent to 51 percent of HIRSCH Servo AG's share capital and voting rights at a cost of €3.92 per share.

At the same time, December 23, 2013, Lifemotion S.A. granted HIRSCH Servo AG an unsecured shareholder loan of €5,000,000 subordinated to HIRSCH Servo AG's creditors pursuant to section 67 (3) of the Insolvency Code as a means to strengthen the capital base. Of this shareholder loan, (i) the sum of €4,280,000 was paid direct to HIRSCH Servo AG and (ii) the sum of €600,000 (plus 20% sales tax) on behalf of HIRSCH Servo AG to Kurt HIRSCH HOLDING GmbH in order to cover outstanding payments from HIRSCH Servo AG to Kurt HIRSCH HOLDING GmbH arising from preliminary work carried out for projects.

Furthermore, Lifemotion S.A. purchased loan claims against HIRSCH Servo AG and its Group companies totaling €24,000,000 at a price of €1 from the creditor banks of HIRSCH Servo AG and its Group companies December 23, 2013, subject to the condition precedent that the borrowers agree, and subordinated them to the creditors of HIRSCH Servo AG and its Group companies pursuant to section 67 (3) of the Insolvency Code. From the creditor banks' point of view, this assignment of debt constitutes a waiver of claims against HIRSCH Servo AG and its Group companies.

Lifemotion S.A. is controlled by Vienna-born Dr Matthias Calice who can look back on a long career in international investment funds where he helped many large companies achieve a turnaround.

As a result, Lifemotion S.A. has acquired an immediate controlling interest in HIRSCH Servo AG pursuant to section 22 (1) of the Takeover Act (ÜbG).

Subject to examination of the situation by the Austrian Takeover Commission, Lifemotion S.A. provisionally assumes that it has to submit a mandatory bid and is not exempt from the duty to submit a bid under section 25 (1) (2) ÜbG (reorganization exception).

In addition, Lifemotion S.A. also provisionally assumes, subject to examination of the situation by the Takeover Commission, that due to the lack of representative trading in HIRSCH Servo AG shares the average price over the past six months prior to notice of intention to bid will not apply as the lower price limit for a mandatory bid but the purchase price of €3.92 per share paid by Lifemotion S.A. to Kurt HIRSCH HOLDING GmbH.

Lifemotion S.A. shall notify the Takeover Commission of a mandatory bid within the statutory period of 20 trading days under section 22 (1) ÜbG.

Lifemotion S.A. has requested HIRSCH Servo AG's Executive Board to call an Extraordinary General Meeting of HIRSCH Servo AG as soon as possible pursuant to section 105 (1) of the Stock Corporation Act (AktG) and item XIV (1) of the Articles of Incorporation, and announce the meeting in time pursuant to XIV (2) of the Articles of Incorporation. The only item on the agenda for this Extraordinary General Meeting will be:

Removal of all members of the Supervisory Board not representing the works council and appointment of

·               Dr Matthias Calice;

·               Dr Johannes Klezl; and

·               Oliver Markl;

as new members of the Supervisory Board.

The next date on the financial calendar is February 28, 2014 when the results for the first six months of 2013/14 will be announced.

*The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria, Hungary, Poland, Slovakia, Italy, and Romania. EPS products (EPS stands for expandable polystyrene and is better known under the brand name of Porozell®) support a variety of functions, including energy savings, as well as sustainable and eco-friendly growth. Their wide-ranging applications cover packaging, shape-molded parts, building insulation, modular boards for underfloor heating, construction blocks, Thermozell® lightweight concrete products, and transport pallets.

Further information:

Michaela Andritsch, Corporate Communications & Investor Relations, Tel: +43 676 5784006,
Fax: +43 4277 2211 170, E-mail: michaela.andritsch@hirsch-gruppe.com, www.hirsch-gruppe.com

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