Quanmax AG: Quanmax acquires the insolvent funworld AG

Linz, 14th September 2010. Quanmax AG signed an agreement to acquire the entire assets of the insolvent Funworld AG on 13th September. Funworld achieved sales revenues of about 14 million Euros with 50 percent gross margin and balanced earnings but had file for insolvency on 29th July 2010 because of liquidity problems. The purchase contract requires the formal approval of the court and provides for a purchase price of 2.2 million Euros.

Funworld is a leading provider of online entertainment games, where players across Europe compete against each other using 10,000 online networked terminals or using the Web. Funworld is also an important supplier of networking software and a secure, central billing provider for private and public providers of sports betting and poker games.

Quanmax wants to equip the funworld betting systems, including the photoplay network or poker machines, with the latest cloud security solutions and hence make them more secure. In addition, the devices will be produced at the Linz location of Quanmax AG in the future to use the synergies of manufacturing and supply chain. Owing to the recent legislative changes, Quanmax promises high growth rates in the technology segment for betting providers. The relevant portfolio is expected to be enhanced by another acquisition in the software segment in 2010. The funds required for both the acquisitions and the necessary working capital will be raised without additional capital increase.

Short-term extraordinary expenditure of around 500 thousand Euros is expected in the current fiscal year of 2010 due to the integration of the companies. With the new acquisitions, Quanmax expects the sales revenue to increase to 100 million Euros in 2011 itself, assuming a significant positive earnings contribution from the new investments.

About Quanmax
Quanmax AG (WKN A0X9EJ) which is listed in the Prime Standard of the Frankfurt Stock Exchange is one of the largest distributor of IT products in Austria with the brands of chiliGREEN, MAXDATA and SecureGUARD. The ISO 9001:2008 certified company currently employs over 150 employees and is changing into a technology company. In addition to the hitherto core business of IT hardware such as desktops, notebooks and servers, the value addition will be increased continuously mainly by expanding the activities in the Appliances and Cloud Security segment.