June 15, 2007

Element Six announces the acquisition of Barat Carbide GmbH

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, construction and road planing 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 midsized 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 €315m.

For more information:

Element Six, Ireland

John Caldwell
Telephone: +353 (0) 61 460015

Barat Carbide GmbH, Burghaun

Karl-Georg Hildebrand
Telephone: +49 (0) 6652 823-20

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

Hans J. Moock
Telephone: + 49 (172) 822 1366