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Mersen M&A Activity 2009

Sep 9, 2009

1518_rns_2009-09-09_45a6674a-1ef7-442c-9aea-9789a93f35ab.pdf

M&A Activity

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Carbone Lorraine has expanded its range of products in the energy market through the acquisition of 2C Cellier, which specializes in the design and manufacture of advanced technology for the nuclear power market.

2C Cellier is a French company (2008 sales: €5 million, 43 employees) specialized in the manufacture of stainless steel and special metal components and boiler assemblies. It has developed special expertise that is recognized by the main players in the nuclear sector.

Carbone Lorraine boasts complementary expertise in the design and manufacture of noble metal equipment, as well as having a substantial manufacturing base in China.

Nuclear power, which has been enjoying fresh impetus as fossil fuels have become in shorter supply, harbors strong potential for boilermaking equipment for secondary and auxiliary reactor circuits. This potential is particularly significant in China where French technology is the benchmark and where an intergovernmental agreement was signed recently putting the French industry in a good position to participate in the largest program currently underway.

Formation of a leader listed with the leading players in the nuclear industry

With the acquisition of 2C Cellier, Carbone Lorraine aims to become a top-tier supplier for the leading players in the global nuclear power industry.

This acquisition will enable the Group to integrate the nuclear-specific expertise of 2C Cellier, i.e. a manufacturing base and recognized technology, knowledge of the regulations and authorizations with the leading players. In return, 2C Cellier will benefit from the Group's exposure to the Chinese market. Carbone Lorraine's key position in China through the manufacturing base of Xianda, which has become a prime player in the manufacture of noble metal equipment, represents a significant advantage for winning new business in this market.

This acquisition fits perfectly with Carbone Lorraine's profitable growth strategy, which is notably founded on bolstering its positions in Asia and refocusing on alternative energy sources.


PRESS RELEASE

Paris, September 9, 2009 2/2

About Carbone Lorraine

World leader of graphite solutions and electrical components, Carbone Lorraine specializes in the implementing of high technology materials in demanding industrial environments and in the development of systems, which are fundamental to the smooth operation of the motor and the protection of electrical equipment. With over 85% of its sales carried out internationally, the Group holds leadership positions in all of its occupations.

Advanced Materials and Technologies: N°1 worldwide in anti-corrosion equipment in graphite
N°2 worldwide in high temperature applications of
isostatic graphite
Electrical components and Technologies:
Electrical Applications: N°1 worldwide in brushes for electrical motors
Electrical Protection: N°1 worldwide in fuses for powerful semi-conductors
N°2 worldwide in industrial fuses

The Group is listed at Premier Marché de la Bourse de Paris and is a part of the following indices CAC Mid100, SBF120 et Next 150. Find Carbone Lorraine on Bloomberg: CRL FP and on Reuters: CBLP.PA

Visit our Internet website www.carbonelorraine.com

Analyst and Investor Contact

Sébastien Desarbres VP Investor Relations Carbone Lorraine

Tel.: +33 (0)1 46 91 54 49 [email protected]

Press Contact

Publicis Consultants Vilizara Lazarova

Tel.: +33 (0)1 57 32 86 46 [email protected]

PRESS RELEASE