Loewe AG : Ad-hoc Announcement

Kronach, Wednesday, July 31, 2013 - Loewe AG, Kronach, Germany, and the Hisense International Co., Ltd., Qingdao, China, today agreed on a joint strategic partnership. The executive boards of both companies have signed an extensive partnership agreement in this context.

The objective of the strategic partnership with Hisense, China's leading provider of consumer electronics with an emphasis on TVs, is to promote shared synergies in purchasing, production, development, and sales. The partnership is meant to enable Loewe to offer more state-of-the-art TVs in the premium brand's entry level segment in the future. It will create new opportunities for distribution in the technical superstores in Germany and abroad in addition to sales through classic retail partners. Moreover, Hisense will give Loewe long-term access to the latest TV panel technology and attractive markets in China.

In return, Loewe is offering Hisense a first-class distribution network in Western Europe, in particular in the German-language markets and the Benelux countries. As a first step, Loewe will take on the exclusive distribution for Hisense in the Austrian test market for the introduction of the latest Ultra-HD technology. In addition, the strategic partnership will give Hisense access to Loewe's powerful TV software encompassing the entire range of functionalities of state-of-the-art televisions, including all multimedia and Internet applications.