July 11, 2006

Polimoon has signed an agreement with the major shareholders in Plastohm to acquire their shares in Plastohm. The acquisition of Plastohm will be Polimoon's largest transaction since the group was established seven years ago.

Plastohm will make a good match with Polimoon as the business of Plastohm is split between consumer packaging and components to the automotive and electrical industry, two segments where Polimoon has established a significant presence over the years.

Plastohm has it's head office located in France with manufacturing and sales offices located in France, Germany, UK, Italy, Tunisia, Spain, Switzerland and Slovakia. The Plastohm Group has annual sales in excess of 105 million Euro with approximately 1000 employees. The packaging business is concentrated around development and manufacturing of packaging for health and beauty care products and pharmaceutical products. Sales are spread to a large number of customers in Europe.

The components business is specialized in smaller systems and components to the automotive industry. In addition the components business has a strong knowledge and position in some specialized parts to the electrical industry. Polimoon and Plastohm make a good fit as the businesses complement each other geographically. Both companies focus on similar products but with no overlap geographically.

"Plastohm is a major acquisition for Polimoon. It will further strengthen our position in Europe, east and west. We see it as a positive challenge to support development of the packaging and component sales, even though we have respect for the work needed to improve eaings, particularly in the components business. Combined sales of Polimoon and Plastohm will be in excess of 500 million Euro annually giving us the size to act more confidently in a challenging market", says Ae Vraalsen, President and CEO Polimoon.

The business in Plastohm has grown significantly over the years. It is anticipated this will continue with Polimoon's support. Polimoon has agreed an average price per share of 8 Euro giving an enterprise value of approximately 40 million Euro. The acquisition is expected to be effective 6th September 2006.

Polimoon holds a leading position within manufacturing, developing and selling of plastic products with 29 operations in thirteen European countries. Polimoon develops, manufactures and sells a wide range of packaging products within the consumer, chemical and medical industries as well as components to the automotive industry. In addition the Group has some production of customised products to other industries, such as the marine and leisure industry. Polimoon has approximately 3125 employees with 450 employed in Norway, where also head office is located. In 2005 Polimoon Group had a tuover of 2 485 million NOK and an EBITDA of 232 million NOK.

Examples of products include bottles for sauces, shampoos, disinfectants, deodorants, canisters for hazardous chemicals, IV bags for medical care, and interior engine components for the passenger car and truck industry.

CANEC Inteational initiated and facilitated the transaction, acting as financial co-advisor to Plastohm SA.