PI Power Intl ADC : Investor update for PI Power International Limited

23.12.2011 - The Board of Directors of PI Power International Limited (PI) provides further information regarding the decision of the arbitration panel in the Austrian arbitration proceedings against Meinl Bank AG (Meinl Bank) as originally announced on 19 December 2011.

The claims presented to the arbitration panel related to the level of Meinl Bank's fees under the Placement and Market Maker Agreement. The majority of the arbitration panelists were persuaded by the testimony of Meinl Bank's experts and by Meinl Bank's legal arguments that the fees charged by Meinl Bank were not excessive when compared to the fair market value of the services provided by Meinl Bank as described in the Placement and Market Maker Agreement. This point was core to the entire case. Whilst the Board of Directors of PI is clearly disappointed that the arbitral panel did not share the view of PI's legal counsel and experts, PI needs to respect their decision.

The Board of Directors wishes to revise the guidance regarding the range of potential outcomes provided to Certificate Holders in the press release dated 4th July 2011. The Board of Directors revises its estimate of further cash repayments to Certificate Holders, in addition to cash repayments to date of EUR 7.80, to between EUR 0.10 and EUR 0.39 per share/ certificate, excluding certificates held by PI. This compares to previous guidance of further cash repayments between EUR 0.10 and EUR 0.86.

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