Element Six Announces the Acquisition of Barat Carbide GmbH

Element Six Announces the Acquisition of Barat Carbide GmbH

June 15, 2007

    LUXEMBOURG, BAD HOMBURG and BURGHAUN, Germany, June 15
/Xinhua-PRNewswire/ --  Element Six today announced that it
has reached an agreement with German private equity investor
Equita to acquire Barat Carbide Holding GmbH for an
undisclosed sum. The acquisition, subject to regulatory
approval, is expected to be completed during the third
quarter of 2007.

    Barat Carbide is a leader in the development and
manufacturing of tungsten carbide wear solutions for soft
rock tools in mining, constructionand road planning as well
as wear parts for oil & gas, chemical and other
industries.

    Through this acquisition, Element Six broadens and
strengthens its business activities in materials technology
used in the abrasives industry and beyond. Christian
Hultner, CEO of Element Six says, "We are very excited
by the addition of Barat Carbide to the Element Six group of
companies. With its strong technology, product portfolio and
management team Barat Carbide will be a powerful
addition."

    Element Six is the major player in the development of
synthetic diamond and cubic boron nitride for various
industrial applications. As Christian Hultner points out:
"Through the combined expertise and product range
gained by this acquisition, we will be able to offer
customers a broader range of materials solutions to their
application needs. It also reinforces Element Six's
position as the leader in the development of hard frontier
materials."

    Current trends in materials development are leading to
a convergence between superabrasives and tungsten carbide
in what has traditionally been quite separate material
areas. Developments such as nano-powder processing, the
broader use of high pressure high temperature as well as
carbide diamond composite materials are driving this
convergence. The combination of Element Six and Barat
Carbide will be able to deliver exceptional product
performance and benefits to its combined customer base.

    Karl-Georg Hildebrand, Managing Director Barat Carbide
says: "Everyone in Barat Carbide appreciates the value
of joining Element Six and we very much look forward to
working with our new colleagues. We are convinced of the
strategic rationale of this acquisition and strongly
believe this move will be of benefit to our business
partners, company and employees. Equita has been a
supportive owner to Barat Carbide and the development of
our company into a standalone business gained tremendously
from the familiarity of the Equita team with industrial
process structures as well as workflows in midsized
companies."

    Hans J. Moock, Managing Director of Equita Management
GmbH, added: "Barat Carbide has successfully developed
into a standalone business following the carve out from
Boart Longyear. In order to unlock its full growth
potential now is a good time to continue the path of
success under the roof of a global leading industrial
player such as Element Six. Barat Carbide adds a new
technological dimension to Element Six while developing new
strategic opportunities in its own core business."

    About the companies

    Element Six is the world's leading supplier of high
quality industrial diamond and the complementary cubic
boron nitride (cBN) abrasive materials.

    Diamond and cBN products are mainly used in the
manufacture of tools for applications including drilling,
sawing, cutting, grinding and polishing of different
materials such as ferrous and non-ferrous metals, natural
stone and concrete, wood based materials, plastics, glass
and ceramics. Recent additions to the product range are a
group of Chemical Vapour deposition diamond products. These
engineered materials are suitable for use in medical,
optical, radio frequency, thermal management and precision
applications. The Element Six group of companies operates
internationally with processing and manufacturing
facilities in Ireland, Sweden, South Africa, China, Ukraine
and the United Kingdom and a global distribution network.

    Previously, Barat Carbide was the hard materials group
of Boart Longyear, one of the world's largest drilling
contractors and manufacturers. With a total of 620
employees across production facilities in China, South
Africa and Germany, Barat Carbide is a global player in
tungsten carbide materials technology. Since the 1950's,
the company has built up a considerable reputation for
technological excellence and innovation.

    Equita is an independent, non-bank-affiliated private
equity company based in Bad Homburg which, through the
vehicle of funds managed exclusively in-house, invests in
midsize companies in the German-speaking countries. Equita
generally acquires majority stakes in companies offering
significant growth and value enhancement potentials.
Current investments are being made from the new vehicle,
the Equita Fonds 3 KGaA, which closed in spring of 2007
after raising a total fund volume of EUR315m.


    For more information, please contact:

     Element Six, Ireland, 
     John Caldwell
     Tel:   [phone]

     Karl-Georg Hildebrand
     Barat Carbide GmbH, Burghaun
     Tel:   [phone]