First Statement of Ströer after Short Attack of Hedge Fund Muddy Waters Capital

In December 2015, the US hedge fund Muddy Waters Capital announced that they would attack explicitly European companies via short sales. Today, their attack against Ströer had a first climax. Muddy Waters Capital published a tendentious "report" with more than 60 pages and addresses the business case of Ströer. The fact that Muddy Waters Capital already highlights at page 2 of their report that the funds that Muddy Waters Capital advice, are short in Ströer, shows clearly a conflict of interest.

Before giving our detailed feedback to the "report", Ströer just wants to highlight that our underlying business outlook is excellent - nothing has changed since the last publication.

• Ströer operationally had the best start into the year in the history of the company
• For the first quarter of 2016 we expect an organic growth rate of around 10%
• For the full year 2016 we expect revenue between 1.1 and 1.2 EURbn and an operational EBITDA between 270 to 280 EURm
• The free cash flow before M&A will be at least 125EURm in 2016
• Ströer announced a dividend of 0.7 EUR/per share for the FY 2015
• Next catalyst: Capital Markets Day LDN 29th April (for details email: [email protected]), Q1 2016 results: 12th May 2016.

Ströer is already analyzing the "report" and will rectify the matters and misrepresentations. At first sight we can already draw the following conclusion:

The report is far fetched, at least tendentious and overall groundless. We note in addition, that Muddy Waters Capital never got in contact with Ströer.

Ströer furthermore considers legal options.

Disclaimer

This press release contains "forward looking statements" regarding Ströer SE ("Ströer") or the Ströer Group, including opinions, estimates and projections regarding Ströer's or the Ströer Group's financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Ströer or the Ströer Group to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this press release and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by Ströer with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this press release is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning Ströer or the Ströer Group. Ströer undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise.