SFC Energy AG emphasis strategic focus on system supply by acquiring PBF Group B.V.

Acquisition highlights
•    SFC power generation expertise combined with PBF power management know how will offer a leading system solution competence
•    Major growth potential for the combined SFC and PBF: increasing both companies’ presence in existing markets (industry, security, defense) and extending the customer base into new markets, such as medical equipment
•    Increased efficiency from shared use of development and production capacities in Germany, the Netherlands, and Romania, and from supply chain integration
•    More balanced business portfolio - less dependability on leisure market seasonality and on low predictability of defense market
•    Acquisition expected to contribute to results starting December 2011


Brunnthal/Munich, Germany, October 20, 2011 - SFC Energy AG (SFC), technology and market leader in mobile and remote power solutions based on fuel cells, today signed a contract to acquire PBF Group B.V. (PBF), a Dutch worldwide operating company specializing in switched mode power supplies and higher level power management solutions. This is an important step in SFC’s strategic reorientation as a systems provider.

About PBF Group
PBF develops, manufactures, and markets customized high tech power solutions, from power supply units to complete power systems for producers of professional machines and equipment. PBF translates these solutions into actual products, integrating electrical engineering, electronics, mechanical constructions and software. PBF is a fast growing company, strongly driven by technological innovation. Among PBF’s customers are companies such as Philips, Bosch Security Systems, Thales, FEI Company or Coherent; also ACAL BFi has been a long term partner providing a qualified sales channel throughout Europe for PBF. PBF was originally spun out from Philips Electronics NV through a Management Buy Out in 1999. The Company with approx. 100 employees is headquartered in the Netherlands and operates a R&D and production site in Romania.
In financial year 2010 PBF generated unaudited revenues of approx. EUR 9.0 million (2009: approx. EUR 7.0 million). For 2011 revenues of EUR 12 to 13 million are expected.

Acquisition background
The net purchase price amounts up to EUR 9.35 million, consisting of EUR 6.0 million in cash, 350,000 new SFC shares (at a valuation of EUR 5.70 per share), and a  performance-related earn-out payment of up to EUR 1.35 million in cash. The new SFC shares to be issued to the seller at closing derive from authorized capital and are subject to a 24-month lock-up agreement. The earn-out payment is linked to achieving defined targets in the 2012 and 2013 fiscal years. The transaction is expected to be completed before the end of 2011.
SFC will bring its proven off-grid power generation expertise, its strong market position in the leisure, industry and defense markets, an excellent quality track record, and an established strong marketing and sales structure into the new group. This will be ideally complemented by PBF’s power management competence, excellent customer base, and development and production strength at its sites in the Netherlands and Romania.
Both companies’ combined expertise supports the strategic orientation of SFC as a systems provider and offers considerable growth potential to SFC as well as to PBF by increasing both companies’ presence in existing markets, such as industrial applications, security, and defense, as well as extending the customer base into new markets, such as medical equipment. In the future 60 percent of the turnover is planned to be generated in industrial applications. This will significantly reduce SFC's dependence on seasonal fluctuations in the leisure business and on the defense segment's traditionally low predictability. Major potential for increased efficiency will result from development, production, and supply chain synergies.
As the number of mobile, off-grid, and grid-based power applications grows, the combined SFC/PBF product portfolio is expected to increase both companies’ market presence. The aggregate revenues of the two companies for the year 2011 are expected be in the range of EUR 26 to 27 million.

Management
The PBF founders will all become part of the combined Company: in the future, the direction of group sales, the management of the Dutch and Romanian locations, and the electronic system development will each be led by a PBF manager.
“We are excited to become part of a leading and well capitalized power solution provider such as SFC,” says Hans Pol, co-founder of PBF Group. “Together, we will bring highly efficient, customized complete power solutions to users world wide.”

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