Everest Kanto buys CP Industries for $64.25 mn

Mumbai , 4th March 2008 : Everest Kanto Cylinder Ltd. (EKC), a leading manufacturer of high pressure cylinders, today announced that an Asset Purchase Agreement has been signed with US-based Reunion Industries, Inc. (OTC - RUNI) to buy all of the assets and liabilities of its pressure vessels division, CP Industries for cash consideration of USD 64.25 Million, subject to adjustment and further subject to Bankruptcy Court proceedings and other regulatory approvals. The assets shall be acquired by a subsidiary of EKC.

ICICI Securities were the sole advisors to EKC on this transaction.

CP Industries, located in McKeesport, Pittsburgh, U.S.A , manufactures and sells large seamless pressure vessels for the containment and transportation of pressurized gases and is a global leader in this business. After consummating this transaction, EKC intends to operate and grow this business at its present facility.

According to Mr. Prem Khurana, Chairman and Managing Director, "This acquisition will enable EKC to capitalise the robust global demand for specialty and CNG gas storage systems across various countries."

About Everest Kanto Cylinder

Everest Kanto Cylinder Ltd manufactures wide range of cylinders for industrial and medical gases, fire fighting equipments, beverage industry, accumulator shells, aerospace, scientific research, CNG-NGV cylinders for vehicles and many more applications. It is also a major exporter of CNG cylinders to Thailand, Malaysia, Bangladesh, Iran, Pakistan and neighbouring Middle East countries. In the domestic market, EKC is a supplier of CNG cylinders to large OEMs like Bajaj Auto, Tata Motors, Ashok Leyland, Swaraj Mazda and Hindustan Motors in the automobile segment. The Company currently has manufacturing units in Tarapur, Gandhidham, Dubai and Aurangabad with an aggregate capacity to produce 8,06,000 units per annum. The Company has also started trial production at its unit in China.