Mersen — M&A Activity 2008

Dec 18, 2008

Carbone Lorraine has announced the takeover of Calcarb, world No. 2 in rigid graphite felt. Claude Cocozza, Chairman and CEO of Carbone Lorraine, comments: "This acquisition constitutes a unique opportunity that fits in with our "Expansion 2011" business plan. We are particularly pleased to have been able to see this acquisition through successfully".

Rigid felts are used as a sophisticated form of insulation in very high-temperature furnaces. The outlets for this product therefore fit in with the Advanced Materials and Technologies division's industrial markets. Use of these insulating products has grown at a very rapid rate over the last few years, initially in electronics and now in solar energy. This has resulted in a shortage of supply of rigid felts relative to the level of demand in these markets.

Calcarb is a subsidiary of Inductotherm, which specializes in vacuum furnaces, in particular induction furnaces. Calcarb's head office and production plant are in Scotland, close to Edinburgh. It recently more than doubled its annual production capacity by building a new plant that opened last autumn under very satisfactory conditions. In view of this new production capacity, the Group is expected to generate sales of €35 million from Calcarb products in 2009. The Group is aiming for sales growth of at least 15% a year for the years ahead thanks to extremely brisk demand in the solar energy market.

Carbone Lorraine will acquire 60% of the company's shares on December 31st , 2008, and has an option to increase its stake to 100% that can be exercised at any time in 2009. The acquisition is financed by debt.

This acquisition will enable Carbone Lorraine to enter a market adjoining the graphite market, with growth driven primarily by solar energy activities. Calcarb's products are regarded by clients as the best in the market in terms of quality. This contributes to Calcarb's very good profitability and provides protection during more difficult times.

With no international network of its own, access to the Carbone Lorraine network will constitute a source of considerable commercial synergies for the company. The acquisition is therefore likely to generate a high rate of return, in line with Carbone Lorraine's demanding criteria. Return on capital employed before tax should reach the target level of 20% from the fourth year of the acquisition.

Furthermore, the technology used by Calcarb will complement other technologies currently being developed by the Group for the insulation market, which creates additional potential for growth.

Calcarb is run by a high quality management team that is well known to Carbone Lorraine, having been one of its major clients for a number of years. The team is happy to be joining the Group and this sentiment is shared by our sales teams, who are keen to roll out Calcarb's products in our network.

The acquisition of Calcarb will therefore create the conditions for strong and profitable growth by Carbone Lorraine in the graphite insulation market and strengthen its position in the solar energy market.

---end---

PRESS RELEASE

Paris, December 18, 2008 2/2

About Carbone Lorraine

Carbone Lorraine is a world leader in graphite solutions and electrical components. The Group specialises in the use of high-tech materials in highly demanding industrial environments and in the development of systems essential to a safe electrical motors' operation and to the protection of electrical equipment. With more than 85% of its sales achieved outside France, the Group holds leadership positions in all of its core businesses.

• Advanced Materials and Technologies World number one in graphite anticorrosion equipment

• World number two in high-temperature applications of isostatic graphite

• Electrical Applications World number one in brushes for electric motors

• Electrical Protection World number one in fuses for power semiconductors
• World number two in industrial fuses

The Group is listed on the Premier Marché of the Paris Stock Exchange and is a constituent of the CAC Mid100, SBF120 and Next 150 indices. Bloomberg ticker: CRL FP – Reuters ticker: CBLP.PA

Visit our website at www.carbonelorraine.com

Investor and Analyst Relations

Press Relations

Carbone Lorraine Sébastien Desarbres

Tel.: +33 (0)1 46 91 54 49 dri@carbonelorraine.com www.carbonelorraine.com Publicis Consultants Vilizara Lazarova

Tel.: +33 (0)1 44 43 74 81 vilizara.lazarova@consultants.publicis.fr

PRESS RELEASE