iesy Repository GmbH - Irish Stock Exchange

Approximately 34% of iesy’s employees are members of a labor union. Historically, iesy has enjoyed good labor
relationships and iesy is committed to maintaining these relationships. iesy takes a constructive approach to union
relationships, and has been able to secure the cooperation of the unions and iesy’s workforce with regard to significant
changes and process improvements. iesy has negotiated various collective bargaining agreements directly with the labor
union. These collective bargaining agreements cover the general labor conditions of iesy’s employees (other than executives),
such as working hours, holidays, termination, and general payment schemes for wages. iesy gave notice to terminate its main
existing collective bargaining agreements on December 31, 2004, and is in the process of negotiating new agreements in
2005 to increase workforce flexibility as it introduces new products and services.
Environmental Matters
iesy is subject to a variety of laws and regulations relating to land use and environmental protection, including those
governing the clean-up of contaminated sites. While iesy could incur costs, such as clean-up costs, fines and third-party
claims for property damage or personal injury, as a result of violations of or liabilities under environmental laws and
regulations, iesy believes that it is in substantial compliance with applicable requirements of such laws and regulations.
Legal Proceedings
iesy is involved in a number of legal proceedings that have arisen in the ordinary course of its business. Other than as
discussed below, iesy does not expect the legal proceedings in which it is involved or with which it has been threatened to
have a material adverse effect on its business or consolidated financial position. The outcome of legal proceedings, however,
can be extremely difficult to predict with certainty, and iesy can offer no assurances in this regard.
iesy has received a letter from ARGE Kabel in relation to royalties for cable transmission of copyright protected works.
ARGE Kabel claims that it is entitled to royalty payments from iesy and has threatened to sue iesy. To date, a lawsuit has not
been filed by ARGE Kabel against iesy. See “—Intellectual Property” and “Risk Factors—Risks Relating to Our Business—
Uncertainties as to copyright laws may adversely affect our ability to conduct our business.”
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