Annual General Meeting of Schaffner Holding AG

Media Release

Annual General Meeting of Schaffner Holding AG

New members Suzanne Thoma and Georg Wechsler elected to the Board of Directors – Increase in conditional share capital – Dividend of CHF 4.50 per share – Perspective 2011/12

The 16th Annual General Meeting of Schaffner Holding AG on January 12, 2012 approved the proposals of the Board of Directors. Dr. Herbert Bächler and Dr. Markus Zenhäusern were re-elected for a further three-year term. Dr. Suzanne Thoma and Georg Wechsler were elected as new members for a two-year term. In the interest of good corporate governance, terms of office for elections to the Board of Schaffner Holding AG are staggered. The Meeting also approved a proposal to increase conditional share capital to CHF 2,351,115 in order to protect existing employee share option plans. The Board intends to continue purchasing the shares for the plans on the market. It also intends to forgo granting options as part of future compensation programs in order to mitigate the risk of dilution over the next few years. Approval was also given to the Board's proposal for distribution in the form of a repayment (exempt from withholding tax) of CHF 4.50 per share from the capital contribution reserve. The payout ratio of 28 percent is slightly above the Board's target payout ratio of 25 percent of net profit.

Perspective 2011/12

Due to uncertainty in the global economy, the Schaffner Group reported a decline in new orders in fiscal 2010/11 compared with the previous year. As a result, net sales for the first half of the current fiscal year are expected to be on a par with the second half of 2010/11 (CHF 84.5 million). Net sales and EBIT will therefore be much lower than the results posted in the prior-year period (net sales HY1 2010/11: CHF 99.2 million / EBIT CHF 9.0 million). Schaffner has consistently adapted capacity and cost to orders received. In addition, the trend in new orders is again positive, and the rail technology market in China, as well as the photovoltaic market, are expected to recover from the prior-year lows. The Schaffner Group therefore expects to see a significant improvement in net sales and EBIT in the second half of fiscal 2011/12.

Luterbach, January 12, 2012

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