18th December 2006

KnitMesh Sells its Separation Technology Business to Sulzer Chemtech

We are pleased to announce that, on December 13th, 2006, Sulzer Chemtech Ltd, based in Winterthur, Switzerland signed an agreement to acquire the separations technology business of KnitMesh Ltd. The transaction, which includes the full acquisition of our American joint venture business Enhanced Separation Technologies (EST) based in the USA, is expected to be completed in the first quarter of 2007.

Sulzer Chemtech (www.sulzerchemtech.com) is a market leader in separation and static mixing technologies. With its sales offices and locations for engineering, production, and customer support, the business maintains a global presence, employing approximately 1500 professionals around the world.

This acquisition improves Sulzer Chemtech's position as a major player in the growing global gas processing market. It will complement Sulzer Chemtech's product portfolio in the field of gas/liquid separation, putting Sulzer Chemtech in the position to offer a full range of innovative products and related services in the field of separation technology.

The integration of KnitMesh mist eliminator technology into Sulzer’s organisation provides a natural extension to their existing product range. Customers will benefit from over eighty years of combined experience in the supply of process separation systems, and access to a single source for all of their mass transfer and separation requirements.

The acquisition only affects the KnitMesh Separations Business Unit. Our Safety and Specials Business Units, handling Elmac flame arrestors (www.elmac.info) and knitted mesh engineering products, will continue to operate under the ownership of KnitMesh Ltd from our locations in the UK and South Africa. Indeed, the sale of our Separations Business Unit will facilitate significant additional investment and growth of our other business interests.

Should you have any questions about the acquisition of KnitMesh and EST, please do not hesitate to contact our Commercial Department on +44 (0) 1352 717600.

Paul Robinson
Sales and Marketing Director
KnitMesh Ltd

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KNITMESH LIMITED, GREENFIELD, HOLYWELL, FLINTSHIRE, NORTH WALES, CH8 9DP, UK
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E-mail: sales@knitmesh.com     Website: www.knitmesh.com