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PRESS RELEASE Sumitomo Bakelite invests in specialty molding ...

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For more information: For editorial information:

Phil Beesley Brigitta de Vries

Sumitomo Bakelite North America EMG

USA The Netherlands

Tel +1 248 313 7000 Tel +31 164 317 020

Fax +1 248 313 7027 Fax +31 164 317 039

E-mail: pbeesley@sbna-inc.com E-mail: bdevries@emg.nl





PRESS RELEASE

VCPR007E0307







Sumitomo Bakelite invests in specialty molding composites





Gent, Belgium – March 5th, 2007 -- The Sumitomo Bakelite Group announces the acquisition of Neopreg

AG, a Swiss producer of long fiber thermoset composites marketed under the trade names Kinel and Neonite.

Neopreg, based in Gelterkinden, has unique technology for producing these composites that complements

technologies used by Sumitomo’s existing specialty composites business. Neopreg will be integrated into

Vyncolit N.V., Sumitomo’s subsidiary that produces moldable composites in Europe, but will retain its name.

Henny van Dijk, President of Vyncolit N.V., has assumed leadership since February 19, 2007.





Shigeru Hayashi, Senior Managing Executive Officer for Sumitomo Bakelite’s High Performance Plastics

division, stated, “This acquisition signals Sumitomo’s commitment to further develop our specialty composites

business to take advantage of new market opportunities. Neopreg technology provides a strong platform for

global growth in this sector. Our customers will benefit from the synergies between the two product lines,

which will also spark new materials innovation.”





Through Sumitomo Bakelite’s global marketing, sales and distribution infrastructure, customers will receive

greater access to long fiber products, produced with Neopreg’s unique and environmental friendly production

technology ensuring consistent high quality. Combining Sumitomo Bakelite’s expertise, and R&D capability,

with Neopreg’s technology, will result in a wider product portfolio offering customers additional choices.





Further, Neopreg customers will be able to take advantage of a complete package of technical services

offered by Sumitomo Bakelite and Vyncolit. This support, from initial design through to prototyping and testing,

is delivered by a state-of-the-art Technical Market Development Centers (TMDC); in Gent, Belgium, Detroit,

USA and Shizuoka, Japan.

Neopreg specializes in long fiber reinforced epoxy and bis-maleimide (BMI) compounds with outstanding

mechanical and thermo-mechanical properties. Neonite epoxy molding compounds offer excellent

dimensional stability at high temperatures and high resistance to cracking. Applications include high-voltage

equipment, switches and contact terminals. Kinel polyimide molding compounds provide outstanding high-

temperature performance and mechanical properties for aerospace applications, for example jet engine

intakes and blades. In addition these products can be used for automotive applications and capital goods to

manufacture finished products, such as film stretch machines.





According to van Dijk, “This is an important strategic move that will add exciting new products in addition to

our phenolics portfolio. These technologies will allow us to leverage new growth opportunities in the

automotive and aerospace markets as well as capital good sector, including machinery for processing

plastics. Vyncolit is a very strong marketing company, and the Neopreg portfolio will enable us to direct our

marketing efforts to customers with specialized requirements. We view this as the first of many steps in the

direction of becoming a leading specialty composites company.”





Theo Staeheli, the former President of Neopreg, will serve as a Consultant to Sumitomo Bakelite. “I am happy

that Neopreg is in good hands and look forward to working with the new team to expand the long fiber

composite business,” he said.





About Vyncolit

Sumitomo Bakelite is the world’s largest producer of phenolic molding compounds and one of the leading

global developers and producers of specialty phenolic resins. The Vyncolit group, a market leader in

engineering phenolics, was acquired by Sumitomo Bakelite in 2005. Shortly after, Vyncolit North America was

re-named Sumitomo Bakelite North America, while Vyncolit N.V. continued under its existing name. Based on

phenolic resins and utilizing a variety of reinforcing fibers and mineral fibers, Vyncolit compounds are

characterized by their heat resistance, strength and dimensional stability delivering reproducible, high-

tolerance parts. This makes them the materials of choice for replacing metal and thermoplastics in a broad

range of demanding high-tech applications.

Photo Caption:

The Sumitomo Bakelite Group acquires Neopreg AG, a Swiss producer of long fiber thermoset composites

marketed under the trade names Kinel and Neonite. Neopreg AG will be integrated into Vyncolit N.V.,

Sumitomo Bakelite Group’s subsidiary that produces moldable composites in Europe, but will retain its name.

From left to right: Hideki Maruyama, Manager Long Fiber Technology Sumitomo Bakelite Europe; Shigeki

Muto, President Sumitomo Bakelite Europe; Henny van Dijk, President Vyncolit and Neopreg; Theo Staeheli,

Founder of Neopreg; Yoshiaki Taniguchi, Manager Business Planning Sumitomo Bakelite Japan and Peter

van de Flier, Market Manager Neopreg products.

(Photo: Vyncolit, VCPR007)









This press release and relevant photography can be downloaded from

www.PressReleaseFinder.com

Alternatively for very high resolution pictures please contact Brigitta de Vries

(bdevries@emg.nl, +31 164 317 020)



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