May 2, 2006

EQUITA acquires majority interest in Z&J Technologies from HTE

In association with the company’s management, Equita Fonds 3, a fund advised by Equita Management GmbH, has acquired Z&J Technologies GmbH, Düren, a leading German producer of industrial valves known under the “Zimmermann & Jansen” brand name, from Hochtemperatur Engineering GmbH(HTE), a portfolio company owned by Deutsche Beteiligungs AG (DBAG). Anannouncement to this effect was released today. The parties to the deal agreed not to disclose the volume of the deal or any other details of the transaction.

Equita Management GmbH, a private equity company of the Bad Homburg-based Harald Quandt Group, specializes in complex transactions involving midsized companies in the German-speaking countries. This latest transaction is the third investment to be made by the Equita Fonds 3, which was launched in November 2005. Outside financing is to be provided by Deutsche Bank AG.

The Equita Fonds 3 is an open-ended fund running for an indefinite period. This enables the fund to also make longer-term investments. By first closing in November 2005, the Equita Fonds 3 had equity commitments in excess of €133m. Expected in Q3/2006, final closing is expected to raise the target volume of up to €300m.

Zimmermann & Jansen is a leading German producer of high-quality valves used in industrial applications in the iron and steel industry, chemicals and petrochemicals, and the glass industry. In addition to valves and equipment for the iron- and steelmaking and petrochemicals industries, the company’s product portfolio also includes machines and components for the glass industry and plant engineering sectors, foremost among them energy recovery turbine units and bell-less top chargers for blast furnaces. Founded in 1877, the oldestablished company was acquired in 2001 by RHI, Austria’s internationally leading producer of heat-resistant refractory products. Following the acquisition of the engineering activities of RHI AG by Deutsche Beteiligungs AG in 2002, Zimmermann & Jansen, together with its then competitor, Herrmann Rappold (RACO), became part of HTE.

In the relevant market segments within the iron, steelmaking and glass industries, and in the petrochemicals sector, Z&J Technologies is to be ranked among the world’s leading suppliers,with global market shares ranging from 30 to 60 per cent. In fiscal 2005, the company reported sales revenues of some €65m. Z&J has a worldwide workforce of 350, of whichsome 220 are based at the Düren plant. At its international facilities, the company has a headcount of 50 in South Africa, 60 in the USA, and 20 in China. Major impetus for future growth has, in recent years, come from the ongoing worldwide boom in the iron and steelmaking industries. In the coming years, growth markets energy and petrochemicals will be a source of above-average growth potentials for the company.

On signing the agreement, Ekkehard Brzoska, chief executive of Z&J Technologies, stated:“We are delighted to have found, in Equita, a majority shareholder with experience of the midsized segment that is committed to a long-term investment and will help us realize our growth process independent of any overriding group interests. We are already to be numbered among the leading worldwide players in our industry. Together with Equita, we are seeking, through the development of new products, to build on and consolidate this position still further.”

Dr. Hansjörg Schnabel, managing director of Equita Management GmbH, added: “Z&J is operating worldwide in attractive growth industries and markets, and boasts internationally acclaimed engineering competencies together with an attractive product range. Against the broader backdrop of the current discussion on Germany’s viability as an industrial location, Zimmermann & Jansen has demonstrated that it is possible for companies based in Germany to compete successfully in the international marketplace. As an investor that is also based in Germany, and one with an impressive track record in terms of international know-how, we shall assist the experienced management team at Z&J in their efforts to push further ahead with long-term global expansion, most especially in the attractive commodities and energy segments.”

Further information:

Equita Management GmbH, Bad Homburg v.d.H.

Dr. Hansjörg Schnabel, Managing Director
Telephone: +49 (0) 6172 9441-229

Z&J Technologies GmbH, Düren

Ekkehard Brzoska, Chief Executive
Telephone: +49 (0) 2421 691-234

Released on behalf of Equita Management GmbH by:

Charles Barker Corporate Communications GmbH, Frankfurt am Main

Irina Kobboldt, Telephone: +49 (0) 69 794090-30
Kornelia Spodzieja, Telephone: +49 (0) 69 794090-40