MPC Capital launches multi-stage strategy programme - First stage: Adjustment of the organisational structure and cost-cutting

Hamburg, January 7th, 2009

MPC Capital, the Hamburg-based wealth and asset manager, launches a multi-stage strategy programme aimed at mastering the challenges of 2009 and moving the company into a promising position for 2010 and after. The first stage includes the adjustment of the organisational structure as well as cost reductions. Further steps will follow by mid-February 2009 in order to secure the company's leading position. MPC Capital envisages returning to growth already in 2010.

The company, its shareholders and its financing partners will all make substantial contributions to this programme which comprises an extensive set of measures. "Our industry will face diverse challenges both at the corporate and the financing level in 2009. We are getting ready to master these challenges with a comprehensive set of measures," Dr. Axel Schroeder, CEO of MPC Capital AG, commented on the decision.

At the corporate level, adjustments of the organisational structure and cost reductions represent an important element of the programme. The company intends to save a total of roughly EUR 10 million in 2009. MPC Capital plans to launch the second stage of the strategy programme by early February 2009.

The first step will allow MPC Capital to reach it's break-even point already with a placement volume of approx. EUR 300 million in 2009. This volume would be in line with the placement results of the past months, which were adversely affected by the financial crisis. Even after the adjustments, MPC Capital will be able to process a much higher equity volume as soon as the market environment improves. MPC Capital will release its guidance for 2009 in due time.

The headcount, which is geared to a placement volume of over EUR 1 billion and fast growth, will be adjusted by 55 to 300 employees. MPC Capital sincerely regrets the decision to reduce its workforce. The company will provide the employees affected with comprehensive support to help them find new jobs.

Going forward, MPC Capital will continue to rely on high development and management quality and preserve the wealth of experience built up within the company over the past 15 years. The existing structure of competence centres for the individual product lines and the expertise pooled within these centres will be maintained as it will help secure MPC Capital's unique service culture. Only the volume that can be handled by these units will be adjusted to the changed market situation and the respective processes will be adapted accordingly.

Against the background of reduced investor confidence and restrictive lending, MPC Capital expects the market environment to remain weak in 2009. On the demand side, there is a possibility of the low placement volume of the second half of 2008 to extend into 2009. On the supply side, however, MPC Capital anticipates a host of attractive project offerings. "In 2009, financially strong investors will have the opportunity to acquire many interesting assets at attractive terms. Thanks to the current and future measures, we will be able to seize these opportunities as they arise and market them successfully," said Dr. Axel Schroeder.

MPC Capital AG