Klaus Eierhoff to leave Bertelsmann – Ewald Walgenbach takes over at DirectGroup Bertelsmann

Says Bertelsmann AG Chairman and CEO Gunter Thielen: "As announced last week, Bertelsmann's Executive Board will focus on core businesses and strengthening our operating results. Our declared goal remains to develop DirectGroup into a profitable core business for Bertelsmann. Ewald Walgenbach's entrepreneurial record is impressive: He played a significant role in RTL Group's integration and evolution into Bertelsmann’s most profitable business. During his time in charge of the BEX initiative he proved that he was very successful at initiating turnaround strategies and putting them into practice. I look forward to working with him and wish him the best of success in tackling his future tasks."

Ewald Walgenbach began his career at Bertelsmann as chief of the strategy division. He went on to play a key role in building the company's television business, first as Managing Director of UFA and later as a board member of the merged company CLT-UFA. In his time as Chief Operating Officer at RTL Group, Walgenbach gained management experience in operating Europe's biggest television, radio and TV production group. In February 2002 he was appointed to the Bertelsmann AG Executive Board as COO for the group. In this capacity, he took charge of the Bertelsmann Excellence Initiative (BEX), the company's synergy and integration management, and cost control programs.

Klaus Eierhoff, who has a doctorate in business administration, began his Bertelsmann career in 1984, at Bertelsmann Distribution in Guetersloh. He began as a member of the company's management team and became its CEO in 1987. It was during this time that Bertelsmann Distribution began building its direct-marketing services division and implementing its first customer loyalty systems.

In 1990, Eierhoff left to join the Executive Board at Karstadt AG, Europe's biggest department store group, where he headed up the Logistics, Organization and Information Processing/EDP division as well as the small and medium-sized department store division. After seven years, Eierhoff returned to Bertelsmann as Executive Board Member for Multimedia. At the time, the Multimedia division's portfolio included the joint venture AOL Europe and the IT service provider Bertelsmann mediaSystems. Under Eierhoff's leadership, the Multimedia division had launched its media e-commerce businesses with BOL in Europe and the barnesandnoble.com holding in the U.S. In summer 2000, Bertelsmann AG bundled its direct-to-customer businesses (book and music clubs, e-commerce ventures) into DirectGroup Bertelsmann. Klaus Eierhoff was appointed to head the new corporate division.

Gunter Thielen thanked Klaus Eierhoff on behalf of Bertelsmann's entire Executive Board: ”Our direct-to-customer businesses developed a new strategy under Klaus Eierhoff's leadership. He integrated BOL into the existing club businesses in Europe and Asia and considerably reduced Internet start-up losses. At the end of 2002, the great majority of our international club businesses will once again be operating at a profit. The Executive Board thanks Klaus Eierhoff for his successful work and his dedication to Bertelsmann. We wish him all the best and much success for his professional future."