During the course of last week articles about Heckler & Koch appeared in Wirtschaftswoche and FTD. The articles made reference to a financial instrument called a PIK (payment in kind) and a law suit being brought by investors in this financial instrument. These issues relate to the overall holding company of the Heckler & Koch Group, Heckler & Koch Beteiligungs GmbH and not to the operating company, Heckler & Koch GmbH.

Heckler & Koch GmbH is a separate company and this company issued a 9.25% High Yield Bond in 2004, which is due to mature in 2011. Heckler & Koch GmbH is a successful, profitable company, with a large cash balance. It has never been the subject of any such complaints by its investors and is in active, positive discussions with banks and financial institutions about the refinancing of the High Yield Bond, which the company currently expects to take place on maturity of the Bond in July 2011.