APPENDIX III: POTENTIAL COOPERATION WITH WESTFALIASURGE(uit het prospectus)
The Supervisory Board and the Management Board of Punch Technix have announced on June 22
that Punch Technix has signed a Letter of Intent ("LoI") on 21 June 2007 with WestfaliaSurge GmbH
(‘WestfaliaSurge’) in respect of Punch Technix’s milking robot division ("RMS Division").
The LoI stipulates the grant to WestfaliaSurge of a worldwide licence (which is not limited in time) on
Punch Technix’s milking robot technology, in exchange of a license fee payable by WestfaliaSurge.
Punch Technix retains the ownership of the licensed patents.
In addition to such license, WestfaliaSurge intends to take over and, following the transaction, render
the full service in respect of the currently installed milking robots of the RMS Division. WestfaliaSurge
also intends to take over a major part of the sales and service organisation of the RMS Division and
integrate it into its own organisation to ensure the continuation of specialist service to existing and
future customers. Among the approximately 70 people currently employed by the RMS Division, the
service and sales organisation consists of approximately 45 people in 7 countries. WestfaliaSurge
intends to take over the largest part of this team. The transfer of such team would not have any impact
on the other activities of Punch Technix.
Parties expect the final agreement as soon as possible, which is expected to be before the end of
August 2007. Until then Punch Technix remains responsible for all sales and service activities of the
RMS Division.
In 2006, the RMS Division generated a revenue of EUR 9.6 million which represents 27% of Punch
Technix group revenue. RMS realized a negative EBIT of EUR 3.9 million in 2006.
The cooperation of Punch Technix’s RMS Division with WestfaliaSurge would be beneficial for Punch
Technix, the RMS Division and its current and future customers. WestfaliaSurge has the scale, the
dealer network, and the critical mass required to capture the full potential of the multibox systems. In
addition, WestfaliaSurge can complete its product portfolio with an automatic milking system.