Private Equity Holding AG reporting a loss in the first quarter

Zug, 30 July 2001 - Private Equity Holding AG reported a net loss of CHF 28.7 million in the first quarter of the financial year 2001/2002 caused by higher write-downs, particularly in the venture portfolio. This compares with a net profit of CHF 41.8 million in the corresponding period of the previous year.
Securities trading losses (CHF 13.8 million) and write-downs (CHF 39.5 million) combined exceeded total capital gains on fund and direct investments amounting to CHF 36.7 million. The write-downs were primarily related to venture funds but also to a lesser degree to other fund investments. Many venture funds and their portfolio companies respectively, continue to operate in a difficult market environment. The sectors internet, telecommunications alongside with other high-tech industries were first and foremost affected.
As of 30 June 2001, consolidated equity of Private Equity Holding AG amounted to CHF 1.57 billion (CHF 1,36 billion as of 31 March 2001). The consideration of the new International Accounting Standards (IAS 39) under which unrealized appreciation is taken into account within equity explains the increase since March 2001. As of the end of the first quarter 2001/2002, Private Equity Holding AG is fully invested with investments amounting to CHF 1.64 billion and total commitments of CHF 2.60 billion.
The portfolio of Private Equity Holding AG with the exception of the venture funds develops satisfactorily. However, with more than half of the capital invested in the sectors technology and venture capital, the short-term future of Private Equity Holding AG will be influenced to a significant degree by the developments in the relevant technology markets. As a consequence, a rebound with regard to fair value or earnings seems unlikely over the next one to two quar-ters.

Accordingly the fair value per share (net asset value per share) declined to CHF 359.89 as of the end of the last quarter (CHF 401.14 as of 31 March 2001) or CHF 344.56 as of July 13, 2001, the last cut-off date for calculation.

Private Equity Holding AG (SWX: PEHN), domiciled in Zug (Switzerland), offers investors the opportunity to invest, within a simple legal and tax optimized structure, in a broadly diversified and professionally managed private equity portfolio. As of June 30, 2001, the company held fund investments in 89 funds and direct investments in 47 companies. For further information please consult http://www.peh.ch or contact Eva Kalias, Private Equity Holding AG, Investor Relations, direct dial +41-1-284 77 60).

==>PDF Version: Consolidated Financial Statements for the Quarter ended 30 June 2001