PRESS RELEASE CHG-MERIDIAN AG reaches the billion mark New business grows by 25% Strong growth, especially in Central and Western Europe and America New start-up in the industrial goods sector is already paying off Future investments: Continued progress in development of IT solution sectors Date: Feb. 7, 2014 In Los Angeles, on February 7, 2014 For the first time in the technology management company's history, CHG-MERIDIAN AG, based in the German city of Weingarten (in Baden-Württemberg), has broken the €1 billion barrier in annual lease originations. With newly signed leases worth €1.006 billion, CHG-MERIDIAN achieved the objective it set for itself of attaining a volume of more than €1 billion. "Thanks to our employees' commitment, the success of our strategy as an allround technology- and service-provider, and the systematic, worldwide cultivation of growth markets, we have managed to grow by 25% this past fiscal year", said CEO Your contact: Matthias Steybe Head of Communications and Marketing Franz-Beer-Strasse 111 D-88250 Weingarten Tel. +49 751 503-248 Fax. +49 751 503-7248 Cell phone: +49 172 667-1341 E-Mail. matthias.steybe@chgmeridian.de Jürgen Mossakowski at the annual press conference held on Friday. In fiscal 2012, the volume of lease originations was still at EUR 804 million. Strong growth, especially in Central and Western Europe and America The highest volume growth was achieved in the "Central Europe" region (Germany, Austria, Switzerland and Slovenia), where lease originations grew by 16.3% to reach EUR 507 million (2012: EUR 436 million). Percentage growth soared, particularly in Eastern Europe (up 70.7% to EUR 27 million), Western Europe (up 62.2% to EUR 180 million) and the Americas region (especially USA and Mexico: up 38% to EUR 175 million). For the CHG-MERIDIAN group, the volume of lease originations in 2013 accounts for an overall increase on the balance sheet of just over a fourth (25.2%). An increase in lease originations is not generally reflected immediately in improved earnings figures, although higher volumes today will tend to be important for CHGMERIDIAN's future earnings. This explains why gross earnings (the present value of all leases originated and assets remarketed minus direct acquisition and funding costs) rose Website: www.chg-meridian.com Page2 of 3 by only 14.2% in 2013, attaining EUR 150 million (2012: 131 million). «EFax» IT trend shift in business continues In preparation for the CEBIT expo held in early March, the company updated its technology forecasts, which Subject: Microsoft Software are based on use of technology by over 8,000 international B2B customers: "We are continuing to observe a significant shift towards virtual workplaces in IT investments. Mobile terminals have come to form part of our customers' basic equipment, and not only among executives", said Mossakowski. Managed Desktop Solutions A considerable growth trend is still observable in the use of mobile terminals in businesses: Conventional PCs are becoming less and less important in the daily routine at the office: IT investments in mobile terminals have increased by more than 400% (2012: + 150%). Output Solutions In the output sector, smaller printer solutions are increasingly being replaced by high-performance multipurpose printers, which grew by 24% in 2013 (2012: + 10%). In contrast, there are still no clear signs of the expected heavy use of 3D printers in industrial circles. Data Center Solutions: The tendency to allocate more of the IT budget to data centers is continuing, in order to develop self-contained private cloud solutions. Investments in BladeCenter (+ 33%) and Storage (+ 4.5%) have increased once again, continuing the trend to investment in data center solutions (2012: +35%). New start-up in the industrial goods sector is already paying off With the start-up of the Industrial Technologies Division in 2012, CHG-MERIDIAN expanded its portfolio. Besides IT technologies, it now focuses increasingly on consulting, funding and support for operations involving industrial technology investments: such as robots and production lines. The effects on performance were already clearly noticeable in 2013: "We definitely concluded the ‘launch phase’ of the Industrial Technologies Division this past fiscal year”, said Mossakowski. "With lease originations of approximately EUR 36 million (2012: EUR 5 million), the Division managed to take a big and important step forward." Since mid-2013, the company has been paving the way, step by step, for another technology field: In the Healthcare Technologies sector, CHG-MERIDIAN is now planning to supplement its technology portfolio with top-quality medical technology devices and equipment. "By systematically enlarging our technology portfolio, we are not only expanding our opportunities to serve our existing medical customers but we are also diversifying our portfolio, which reduces our exposure to the risk of falling IT hardware prices now observable on the market", said Mossakowski. The company now manages a total of EUR 3.5 billion in IT, industrial and healthcare technologies for customers in 19 countries. The percentage of our customers from the Healthcare sector ought to increase significantly in the next few years. Future investments: Continued progress in development of IT solution sectors Recovering and recycling used high-tech devices is one of the pillars of CHG-MERIDIAN's business model. In 2013, the company refurbished more than 400,000 devices for resale in its own Technology and Service Center, which is the biggest in Germany. Data erasure was performed securely on some 90,000 devices Page3 of 3 using methods certified by TÜV and DEKRA. Up- and downstream services such as delivery, set-up or pickup of devices at the end of their lifecycle have become a central part of the solutions provided. «EFax» CHG-MERIDIAN has made further investments in its service portfolio, especially in IT-oriented business Subject: Microsoft Software concepts: Besides expanding its range of managed desktop solutions, output solutions and data center solutions, the company has systematically pushed ahead in product development. The innovations include precise cost center allocation and consumables monitoring based on "eBilling", an integrated processoriented software solution in TESMA© Online. In the Data Center sector, the second TÜV-certified "energy efficient" data center has already been put into operation successfully in Germany. Staff still growing: Higher number of apprentices and trainees The CHG-MERIDIAN group's new orientation, increasing internationalization and fast-paced growth are reflected by its growing staff size: 795 people worked for CHG-MERIDIAN as of Dec. 31, 2013 (2012: 774). 265 employees are currently working at the Weingarten head office (2012: 240), and there may be as many as 300 by the end of this year. The number of our employees worldwide is estimated to reach 1,000 in two years. To help recruit new personnel, we have expanded our apprenticeships and trainee positions. The sales trainee program "TrailS" was already launched in 2013. Five trainees have started at our locations in the German cities of Weingarten, Düsseldorf, Berlin, Munich and the Swiss city of Baden. We plan to award five more positions this year. In addition, six apprentices and five students will start at CHG-MERIDIAN this year. Our technology management company is currently training 24 young people (2012: 23). CHG-MERIDIAN: The company CHG-MERIDIAN is one of the world's leading technology management service providers in the IT, telecommunication, industry and healthcare sectors, without being tied to any manufacturers or banks. With some 800 employees, CHG-MERIDIAN provides full support for its customers' technology infrastructures, from consulting, financial and operational services, on to remarketing services for used equipment its own Technology and Service Center. CHG-MERIDIAN offers efficient technology management for large- and medium-sized companies and government agencies. It now serves over 8,000 customers worldwide and technology investments of more than EUR 3.5 billion. More than 1,600 of those customers also make use of TESMA© Online (TEchnology and Service MAnagement System) for their internal technology controlling. The company operates 35 locations in 19 countries worldwide, with its head office in the city of Weingarten in southern Germany.