Promens, a subidiary of Atorka, aquires Bonar Plastics

On 19th of July, Promens hf., a subsidiary of Atorka Group hf., concluded an agreement with Low and Bonar PLC to purchase its plastics division, Bonar Plastics. The agreement is conditional to approval at a shareholder meeting of Low and Bonar PLC to be held in August. The acquisition is made in close cooperation with the Atorka Group hf. The purchase will create a formidable, multinational company with operations in 12 countries on three continents - the world's largest in its field. It will also be one of the largest industrial groups owned by Icelanders: turnover is projected at 140 million euros, with an EBITDA contribution of 12-13 million Euros. Operations are conducted in 19 factories in 12 countries, in addition to sales offices located in Hong Kong, China and Vietnam. The Group's employees number about 1,250. Considerable synergies will be obtained in the joined company which together with good position in the market and a strong technical base will form a potential for both internal and external growth for example in Eastern Europe and Asia.

Bonar Plastics

Bonar Plastics is one of three divisions of Low and Bonar PLC that is listed on the London Stock Exchange. Bonar Plastics specialises in plastic rotational moulding. Sixty-five percent of sales are derived from custom moulded products manufactured for other producers of industrial products. Bonar Plastics is the world's largest company in this field, and the only one with operations in both Europe and North America.

Bonar Plastics' customers include DaimlerChrysler, Caterpillar, John Deere, Peugeot, Renault and Volvo. Thirty-five percent of sales are from sales of own products, particularly tubs and tanks for storage and transportation of materials for the chemical, pharmaceutical and food industries. The company is positioned well in the market, built in part on a high level of technological innovation. In addition to technical operations connected with each factory, the company runs four product development and technological centres that are linked with the Bonar's factories in Hockenheim, Deventer, Bretange and Ridgefield.

Bonar Plastics operates 12 rotomoulding factories in eight countries, in addition to selling its products to numerous other countries. The company's factories are located in Hockenheim in Germany, Deventer in Holland, Sörum in Demark, Miedzyrzecs in Poland, Montoir de Bretagne, Huningue and Bethune in France, Barcelona in Spain, Lindsay near Toronto, Canada, Littleton near Denver, Colorado, Ridgefield Wasington near Portland, Oregon and in Chicago, Illinois, the latter three in the USA.

Promens

Promens hf., a subsidiary of Atorka Group hf., was founded last spring to sharpen focus in operations of the Sæplast Group, and to establish a stronger basis for further expansion through both internal and external growth, taking over Sæplast subsidiaries that are not undergoing restructuring. Remaining in Sæplast hf. are those companies that are being restructured, and emphasis is placed on completing that work. Promens and Sæplast operate eight manufacturing factories in six countries, as well as sales offices in Hong Kong, China and Vietnam. The companies employ about 250 people.

For further information, contact Magnús Jónsson, Executive Chairman of

Atorka Group hf, phone +354 540 6200, or Geir A. Gunnlaugsson, Managing

Director of Promens hf., at +354 892 8040.