GeoSentric Oyj - Company Announcement

CONVERSION OF GEOSOLUTIONS HOLDINGS NV LOAN NOTES HAS TAKEN PLACE AND THE COMPANY IS NOW A MINORITY SHAREHOLDER IN GEOSOLUTIONS HOLDINGS NV

GEOSENTRIC OYJ      STOCK EXCHANGE RELEASE August 8, 2011 at 15:40





CONVERSION OF GEOSOLUTIONS HOLDINGS NV LOAN NOTES HAS TAKEN PLACE AND THE
COMPANY IS NOW A MINORITY SHAREHOLDER IN GEOSOLUTIONS HOLDINGS NV 



As announced on August 4, 2011 the Company has entered into a Subscription and
Shareholders Agreement (“SSA”) with its lead investor in respect of its
holdings in its previously wholly owned subsidiary, GeoSolutions Holdings N.V.
(“GHNV”).  The first part of the financing package as set out in the SSA has
now been completed and involved the lead investor converting its existing
preferred convertible notes (“Notes”) plus interest as issued by GHNV into
newly issued shares of GHNV. This conversion, which was approved at the
Company's Annual General Meeting on June 29, 2011 as extended to July 1, 2011,
leaves the Company as a minority shareholder in GHNV with approximately a 20%
shareholding. As a result of the conversion and the fact that the Company now
owns a minority percentage of GHNV, the Company will no longer be consolidating
its previously wholly owned subsidiaries but will apply the equity method of
accounting for its investment in GHNV in its group accounts. This will have the
effect of reducing its reported group accounts revenues and costs in 2011. 



This first part of the financing package will be followed by rights offerings
as disclosed in the Company's stock exchange release on August 4, 2011. Full
details of the financing package, including the main terms of the SSA, will be
released in the next few days with the EGM call. 



GeoSentric Oyj



For more information, please contact: investors@gypsii.com



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