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Investcorp – Acquisition of Armacell

12.01.2006

It is my pleasure to announce that the process of putting Armacell into a position to execute it’s growth strategy in a faster and more efficient way has successful end.

Investcorp International Ltd., the asset management firm specializing in alternative investments with offices in New York, London and Bahrain, today announced that it had agreed to acquire Armacell International GmbH from Gilde Investment Management and CVC Capital Partners. The terms of the transaction were not disclosed.

Armacell was spun off from Armstrong World Industries in 2000 and is today a global business, headquartered in Münster, Germany, with operations in the United States, South America, Central and Eastern Europe, Russia and Asia. During FY2006, the company expects to generate net sales of €325m.

Armacell is the global market leader in the development and production of flexible technical insulation. The company’s product categories are mainly based on elastomerics and polyethylene technologies, markets that are characterised by attractive growth. Its insulation products are predominantly sold to wholesalers, including insulation specialists, heating and plumbing specialists, refrigeration wholesalers, OEMs or DIY retailers.

Commenting on the transaction, Yves Alexandre, a managing director in Investcorp’s private equity team, said: “Armacell is a true leader in the flexible insulation industry. We are excited to be backing a strong management team in a growing industry and believe that the company is an attractive platform for growth in insulation and technical foams.”

Ulrich Weimer, President and CEO of Armacell International GmbH, said: “Materialising on market opportunities by consolidating maturing industries, investing into new geographies and bringing new technologies to the markets are key elements of Armacell’s growth strategy. Investcorp and Armacell are aligned to faster grow the business in order to create new values for shareholders, employees and customers.”

Closing is expected to occur towards the end of January 2007.

Ulrich Weimer
– President