PRESS RELEASE: Nanogate AG: capital increase for investment in GfO completed

PRESS RELEASE: Nanogate AG: capital increase for investment in GfO completed NANOGATE AG / Key word(s): Capital Increase

28.03.2011 14:16

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Nanogate AG: capital increase for investment in GfO completed

Capital increase for subscription in kind is part of the purchase price for GfO AG - free float comes to around 34 %

Göttelborn, Germany, 28 March 2011. Nanogate AG (ISIN DE000A0JKHC9), a leading international nanotechnology systems provider, has formally completed the capital increase announced in August 2010.

The 37,639 new shares are now recorded in the commercial register. This increases the total number of shares to 1,942,639, taking the free float to around 34 %. There is a lock-up period of 15 months for the new Nanogate shares, which are held by the existing GfO shareholders.

The capital increase for subscription in kind is part of the purchase price for the 51 % stake in GfO AG. The purchase agreement - for a volume of around EUR 1.5 million - includes both a cash and a share component. The cash will largely go back to GfO to strengthen the company's capital base. Nanogate has already secured an option as part of the transaction to acquire the remaining 49 % of GfO, which is currently held by the company managers.

'With this majority stake in GfO, Nanogate has established itself as an integrated systems provider for high-performance surfaces', said Ralf Zastrau, CEO of Nanogate AG. 'The company is an important value driver for Nanogate. We will now be able to grow revenue and earnings faster. Together we offer our customers our unique expertise in materials and substances as well as in process integration and production. We are assuming that GfO will generate sales of at least EUR 15 million with an almost double-digit EBIT yield this year.'

Overview of the current Nanogate shareholder structure: Free float: 34 % HeidelbergCapital Private Equity Fund: 33 % BIP Investment Partners: 25 % NanoTec Beteiligungen GmbH: 8 %

Nanogate on Twitter: http://twitter.com/nanogate_ag

If you have any queries, please contact: Christian Dose (financial press and investors) Cortent Kommunikation AG Tel. +49 (0)69 5770 300-0 nanogate@cortent.de

Liane Stieler-Joachim Nanogate AG Tel. +49 (0)6825 9591 220 liane.stieler-joachim@nanogate.com

Nanogate AG Zum Schacht 3 66287 Göttelborn, Germany www.nanogate.com

Nanogate AG: Nanogate is a leading international integrated nanotechnology systems provider with a focus on enhancing surfaces. The firm, which is based in Göttelborn (Saarland), enables the programming and integration of additional properties - such as non-stick, antibacterial, anti-corrosive and ultra-low friction - into materials and surfaces. As an enabler, Nanogate thereby gains a competitive edge for its customers by product refinement using chemical nanotechnology. Nanogate covers a wide range of industries, functions and substrates. The company thus provides a decisive interface for the commercial use of chemical nanotechnology and bridges the gap between the suppliers of raw materials and industrial conversion into products. In doing so, Nanogate concentrates as an enabler on one of the most attractive segments in the industry. Nanogate has a unique combination of extensive materials expertise paired with comprehensive, first-class process and production know-how from the majority stake in GfO acquired in 2010. As a systems provider and jointly with GfO, Nanogate covers the entire value chain from purchasing raw materials, synthesising and formulating the material systems, right through to enhancing and producing the finished surfaces.

The Nanogate Group currently has approximately 220 employees in all and since commencing operations in 1999 has been a trailblazer in nanotechnology. The company has first-class customer references (e.g. ABB, BSH Bosch-Siemens Haushaltsgeräte, Junkers, Kärcher, Koenig & Bauer AG, Opel and REWE Austria) and many years' experience of different industries and applications. To date, more than 200 projects have gone into mass production. Nanogate has also entered into strategic cooperations with international companies such as the GEA Group and Dow Corning. Nanogate consists of Nanogate Industrial Solutions GmbH, FNP GmbH for products in the sport/leisure sector, majority stakes in Holmenkol AG and GfO Gesellschaft für Oberflächentechnik mbH as well as a shareholding in sarastro GmbH.

Disclaimer: This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Nanogate AG (the 'Shares') may not be offered or sold in the United States or to or for the account or benefit of 'U.S. persons' (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the 'Securities Act')). No offer or sale of transferable securities is being made to the public outside Germany.

28.03.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English Company: NANOGATE AG Zum Schacht 3 66287 Göttelborn Deutschland Phone: +49 (0)6825/95 91 0 Fax: +49 (0)6825/95 91 852 E-mail: nanogate@cortent.de Internet: www.nanogate.de ISIN: DE000A0JKHC9 WKN: A0JKHC Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Entry Standard in Frankfurt

End of Announcement DGAP News-Service
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(END) Dow Jones Newswires March 28, 2011 08:16 ET (12:16 GMT)