Agfa-Gevaert announced that its Board of Directors has completed the strategic review of the company and decided that it is in the best interest of the Group, the customers, the shareholders and the employees to split into three independent, listed companies - representing the activities of Agfa Graphics, Agfa HealthCare and Agfa Materials - by the end of 2007. The Board has concluded that the businesses have the size, fundamental strength, industry leadership, and organizational talent to succeed independently in their respective markets. The separate companies will be better positioned to pursue their own distinct strategic objectives and will have direct access to the capital markets. Upon completion of the demerger, shareholders of Agfa-Gevaert will, instead of holding one Agfa-Gevaert share, hold shares in three separately listed companies.

 

Agfa-Gevaert today also announced its fourth quarter results. Excluding currency effects, Group sales increased 3.9 percent (1.5 percent including currency effects) compared to the fourth quarter of 2005. The Group's fourth quarter recurring EBIT decreased due to the significant increase of silver and aluminium costs. Agfa also booked a restructuring charge of 122 million Euro in the fourth quarter, as the negotiations about the social plans for, amongst others, the Belgian operations were concluded.. As a result, a net loss of 25 million Euro was recorded in the last quarter.