Prout AG
Prout AG:Investment in E-Bike Produktions GmbH, Nuremberg

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— PROUT AG (ISIN DE000A0BVXK3) listed on the Frankfurt Stock Exchange (General Standard) makes the following announcement: PROUT AG jointly with its co-investor Blue Cap AG, Munich, acquired a majority interest in the production facilities of the ‘Powered Assisted Bikes’ (PAB`s) business unit of insolvent Sachs Fahrzeug- und Motorentechnik GmbH, Nuremberg. Said Sachs company had outsourced its manufacturing activities to a contract manufacturer about a year ago but has been under receivership for roughly six months now. Former contract manufacturer x-act Bikes GmbH will remain affiliated with the new production company to act under the firm name E-Bike Produktions GmbH. Assembly will continue at the production facilities in Nuremberg. E-Bike Produktions GmbH is a full range manufacturer for electric and other motorized bikes. Its activities will comprise sourcing and production as well as the supply of spare parts and accessories. The acquisition was implemented through Hudson Bike GmbH which was established jointly with Blue Cap AG and which intends to engage in further acquisitions in the busiess fields of PA`s and motorized bicycles. Hudson Bike GmbH will also act as the primary distributor and marketing company for E-Bike Produktions GmbH. Darmstadt, 12 December 2006 PROUT AG: Frank Tom Schoeck, CEO Röntgenstraße 3, 64291 Darmstadt Tel. +49 (0)-89-450 816 79 24 Fax +49 (0)-89-450 816 79 9 E-Mail schoeck@prout.de www.prout.de ————————————————————————— Information and Explaination of the Issuer to this News: Electric Bicycles A growth in demand for bicycles is witnessed in developed countries such as the US and Europe where it is being considered as a necessity in daily activities of life. Many people cannot afford cars and if they do they may not able to maintain it. Thus, electric bicycles are simple, affordable, easily accessible, and reliable in nature without any hassle of filling fuel. In addition to this electric bicycles are pollution and sound free, and ideal for use in crowded cities. Rising oil Costs: Stimulus for bicycles Global oil production is nearing saturation and prospects for new oil finds are bleak. But demand for oil has been growing at a fast pace aided by larger requirements of fast developing economies such as China and India. Electric powered vehicles are the next viable option. Apart from being pollution free, electric bicycles provide much relief to users facing parking hassles in major metropolitan cities. Moreover the E-Bikes are not required to be registered in many regions of the world. Advancements in technology include the electric bicycles with auxiliary electricity. Win addition, worsening parking problems and the growing importance of environmental protection due to air pollution in urban areas, make auxiliary driving power-based bicycles high added-value products and there is a strong trend in the bicycle industry to adopt this technology. Electric Bicycles: An emerging Segment E-Bike is the first efficient electric vehicle that has been fully commercialized. The bicycle can be moved around by the usual pedalling manner, by a pair of electric motors or through a combination of the both. The marketplace has successfully accepted the model. The bicycles are creating a huge demand for batteries and are being welcomed by industrial users, couriers, commuters and recreational cyclists. Electric bikes are in great demand especially in countries where emission laws are prevalent. Every year maximum number of those bikes are sold in the US and Europe. Theses bikes are sold by all bicycles shops and dealer networks. The fun involved in riding an electric bike is the driving force of this huge demand. Advantages of an Electric Bike An electric bicycle, on average, saves 25 gallons of fuel of every 500 miles, not driven by an automobile. Electric bikes in the US were put to advantage by the law enforcement officers. A cop on an electric bike can get to emergency situation quickly and return back without getting tired than a cop on foot. The E-Bike is energy-efficient, more mobile than a car, can easily get through traffic and eliminates the problem of pollution. Theses E-Bikes have an electric power-assist drive, specific sealed lead acid battery systems that can be recharged in less than two hours. The bikes offers non-pedaling speed, up to 18 miles an hour and ranges to 40 miles. Distribution Channels There are basically two broad channels of distribution for bicycles: Ø Bicycles sold through mass merchant channel Ø Bicycles sold through independent bike dealers (IBD Channel) Under the mass merchant channel, stores such as ToysRUs and Metro are included. In the IDN channel, corner bike store and sporting goods stores are included. The importance of the distinction lies in pricing the bicycles. The IBD Channel sells high quality, high priced bicycles mainly to the adult and juvenile markets. Growth of the bicycle market is predominant in this segment. European Markets Demand for bicycles in Germany is increasing to a great extent and the country is the largest importer of bicycles in Europe. A growing number of people own more than one bicycle in the country. German households account for about 60 million bicycles. Germany ranked as the highest bicycle consumer in the Western Europe followed by Italy and