In line with Dufry’s stated strategy of profitable growth, the Group performed strongly in the first half of 2010 and continued to grow double-digit at top line and profit-wise. For the period to June 30, 2010, the Group’s turnover increased by 15.8% on constant FX rates, of which organic growth accounted for 10.2 percentage points. EBITDA grew by 20.3% on constant FX rates and reported net earnings almost doubled to CHF 60.7 million.

Dufry is supporting disadvantaged Brazilian families through its new Social Center in Igarassu. 

In the first quarter of 2010, Dufry increased its turnover by 15.7% based on constant FX rates with organic growth contributing 10.6%. In absolute terms, turnover grew to CHF 585 million from CHF 538 million in the first quarter of 2009. EBITDA (before other operational result) increased by 20.7% on constant FX rates.

Basel, 12 May, 2010

In 2009, Dufry’s turnover grew by 13% to CHF 2,379 million from CHF 2,114 million in 2008. EBITDA (before other operational result) increased to CHF 301.1 million from CHF 293.4 million in 2008, resulting in an EBITDA margin of 12.7%. Net cash flow from operating activities more than doubled to CHF 389.4 million from CHF 172.9 million and Dufry reduced its net debt by CHF 214 million to CHF 610 million at the end of 2009 from CHF 824 million one year earlier and from CHF 943 million since closing of the Hudson Group acquisition.

Dufry AG (“DAG”), a company incorporated in Basel, Switzerland, with shares listed on the SIX – Swiss Stock Exchange (“SIX”) and Dufry South America Ltd. (“DSA”), a company incorporated in Hamilton, Bermuda, with shares listed on the Luxembourg Stock Exchange and with Brazilian Depositary Receipts (“BDRs”) listed on the São Paulo Stock Exchange – BOVESPA (“BM&FBOVESPA”), hereby inform the market, in addition to the information disclosed on the Notices of Material Fact dated as of January 11 and 18, February 12 and March 19, 2010, that:

Dufry South America Ltd. (“DSA”), a company incorporated in Hamilton, Bermuda, with shares listed on the Luxembourg Stock Exchange and with Brazilian Depositary Receipts (“BDRs”) listed on the São Paulo Stock Exchange – BOVESPA (“BM&FBOVESPA”), and its controlling shareholder, Dufry AG (“DAG”), a company incorporated in Switzerland, with shares listed on the SIX – Swiss Stock Exchange (“SIX”), hereby inform the market, in addition to the information disclosed on the Notices of Material Fact dated as of January 11 and 18 and February 12, 2010, that:

Dufry’s Global Retail Sales Programme – “Dufry plus1” was launched recently in Sharjah, UAE.

On 11 February, 2010, Dufry South America Ltd. (“DSA”), Dufry AG (“DAG”) and Dufry Holdings & Investments AG (“DHIAG”), a wholly-owned Swiss subsidiary of DAG, entered into a Merger and Amalgamation Agreement (“Merger Agreement”), providing for an amalgamation under the Bermuda Companies Act 1981 and a merger under applicable Swiss law (“Merger”).

Extraordinary cash dividend of USD 4.71 per DSA share/BDR for DSA shareholders/BDR holders – 1 DAG share/BDR for 4.10 DSA shares/BDRs – Finalization of merger agreement expected in the coming weeks

In connection with the proposed merger of Dufry South America Ltd. (“DSA”) and Dufry AG (“DAG”), the Boards of Directors of DSA and DAG have reached an agreement that DSA shareholders shall receive 1.00 DAG share in exchange for 4.10 DSA shares and DSA BDR holders shall receive 1.00 DAG BDR in exchange for 4.10 DSA BDRs. In addition, conditioned upon completion of the merger, DSA shareholders/BDR holders shall receive from DSA an extraordinary cash dividend of USD 4.71 per DSA share/BDR. The agreed terms have been proposed by the Special Committee of Board Members of DSA.

Dufry would like to announce the appointment of Mr. Kevin Farrow as Area Retail Manager in Shanghai, with the mission to open Dufry’s new operation in China.

Dufry AG shares or BDRs in exchange for Dufry South America Ltd. shares or BDRs – Dufry South America Ltd. to pay out extraordinary cash dividend – Capital increase of Dufry AG with secondary listing of its shares as BDRs on the BM&FBovespa – Merger will provide enhanced strategic flexibility and growth opportunities – Enlarged free float of combined entity

Dufry Group, a leading global travel retailer with over 1,000 outlets in 42 countries, proposes to combine Dufry AG (“DAG”) with Dufry South America Ltd. (“DSA”). The proposal foresees a merger whereby DSA public shareholders and Brazilian Depositary Receipts (“BDRs”) holders shall receive 1.00 DAG share or DAG BDR in exchange for 4.10 DSA shares or DSA BDRs. The proposal also includes an extraordinary cash dividend of USD 3.92 per DSA share or BDR that will be paid by DSA to DSA shareholders and BDR holders after the approval of the merger. The transaction enhances the strategic flexibility of Dufry Group and simplifies the corporate governance of the group. It furthermore combines the free float of both companies and bundles the trading liquidity of DSA and DAG shares and BDRs into one listed company and facilitates Dufry Group’s access to capital markets overall. The planned BDR program of DAG adheres to the new BDR regulation by CVM (“Comissão de Valores Mobiliários”, the Securities and Exchange Commission of Brazil).

Dufry would like to announce the appointment of Mr. José Rego as General Manager in the Dominican Republic, with the mission to continue expanding this key Caribbean operation.