UHMW-PE products display very high non-stick characteristics similar to Teflon® and high resistance to corrosion from chemicals and to abrasive environments such as sand and slurries. In machined and fabricated part form, their uses include applications in material handling, agricultural, power transmission and food processing machinery, as well as in medical devices, shipping and recreational equipment. Poly Hi Solidur’s branded UHMW-PE products include the well-known TIVAR® and QuickSilver® trademarks.

«This acquisition is another significant growth step for Quadrant in the context of our strategic focus on high-performance plastics,» commented Arno Schenk, member of the Board and Co-CEO of the Quadrant Group. «Poly High Solidur is an excellent fit for us in terms of its products, complementary geographical presence, management and personnel, corporate culture and clear market leadership philosophy. Previously we held only a very limited position in UHMW-PE, but have always considered it a strategically important complementary product line. This acquisition doesn’t just fill a gap in our product family, it does so with the global leader in this field.» Commenting on synergies, Mr. Schenk noted, «These new additions to our product line are sold through the same distribution channels, and to many of the same customers and markets as the other high-performance plastics we already market. Further, this move also gives us more muscle in terms of volume and as a development partner with our key suppliers.» Mr. Schenk also added, «Although all the advantages are too far-reaching to be quantified fully at this stage, we expect to benefit from substantial operating synergies in the years to come, including the ability to offer our mutual customers the efficiency of one-stop-shop purchasing and logistics, broader application development support, and a far greater range of material options from one supplier.»

«Considerable know-how in development, production and distribution will be brought together by this acquisition,» according to Adrian Niggli, Chairman of the Quadrant Board. «All of this will reinforce Quadrant’s global market leadership and prospects for growth in high-performance plastics.» Regarding size of acquisition and financial benefits, Mr. Niggli noted, «Since our business will be 40% larger than in 2001 when we acquired the High Performance Plastics Division from DSM, and based on our healthy equity ratio of over 35%, we are well prepared to realise this size of acquisition. With the purchase price being only a good five times Ebitda and only slightly above Poly Hi Solidur’s net asset value, the acquisition can be financed from our liquid funds and our borrowing capacity. Like in all of its debt-financed acquisitions, Quadrant has chosen the shareholder-friendly form of a syndicated bank loan which is being arranged by UBS. As already clearly demonstrated in the past, the acquisition loan will be amortised from operating cash flow. It is also especially worth emphasising that Quadrant’s balance sheet remains sound. Our equity ratio will stay above 30%. As there is no capital increase involved, we expect our – already high – sustainable free cash flow per share to grow naturally in the coming years in line with the integration of Poly Hi Solidur. We are also convinced that the integration can be handled well by our organisation which has already demonstrated its abilities and capacity in this respect many times in recent years.»

«Poly Hi Solidur is a great company with a dedicated team of employees,» said Arthur W. Huge, President and Chief Executive Officer of Menasha Corporation. «After a strategic review of our businesses, we decided to sell Poly Hi Solidur to focus Menasha’s resources on our other businesses. Poly Hi Solidur is a great strategic fit within the Quadrant Group and we are convinced the sale is in the best interests of Poly Hi Solidur’s employees and customers because of Quadrant’s international leadership role in this industry.»

Quadrant had already gone on record earlier this year that it would seek further sustainable, quality sources of growth in high-performance plastics and thermoplastic composites in the future. Selective acquisitions within the context of its strategic positioning were not ruled out. The first of these has now been made with the acquisition of Poly Hi Solidur. In terms of size, 2004 revenues of both businesses, added retrospectively, would total around 675 million Swiss francs, with 80% in high-performance plastics.

Further information obtainable from:

Quadrant AG
Adrian Niggli, Chairman of the Board, adrian.niggli@qplas.com
Wolf-Günter Freese, CFO, wolfguenter.freese@qplas.com

Quadrant AG, Talstrasse 70, CH-8001 Zurich, Switzerland
Phone +41 (0)44 213 66 66, Fax +41 (0)44 213 66 99 

Questions raised by journalists and financial analysts will also be answered at today's Media and Analysts' Conference to be held at 10.30 a.m., Hotel Glockenhof, Sihlstrasse 31, Zurich

Menasha Corporation / Poly Hi Solidur
Michael W. John, Director Corporate Communications, Menasha Corporation
Phone +1 920-751-1015
Michael.john@menasha.com

Quadrant
Quadrant (www.quadrantplastics.com), a public company listed on the Swiss stock exchange SWX, is a global leader in high-performance polymer material solutions in the form of semi-finished and finished products. These specialty engineering thermoplastics and composites are superior in performance over metals and other materials, and are used in a growing number of applications developed with leaders in a wide range of industries. With more than 1300 employees at 27 specialized locations worldwide, Quadrant generated net sales of 470 million Swiss francs in 2004. After the Poly Hi Solidur acquisition, Quadrant will have more than 2300 employees at over 40 locations, generating sales of 650 to 700 million Swiss francs. Thanks to its clear strategic orientation and focus Quadrant is well positioned and prepared to create added value on a consistent and sustainable basis for its customers and shareholders and to further expand its market leadership.

Poly Hi Solidur
Founded in 1970, Poly Hi Solidur (www.polyhisolidur.com) is the world's largest processor of semi-finished UHMW-PE, sold under the TIVAR®, and QuickSilver® brand names. TIVAR® is an engineered thermoplastic with a number of important physical properties including outstanding abrasion resistance, high impact strength and a low coefficient of friction. In addition, the polymer has excellent chemical resistance, sound dampening and electrical insulating properties, and it doesn't absorb moisture. This non-porous quality inhibits the growth of fungus or bacteria. Poly Hi Solidur also offers a broad range of chemical- and corrosion-resistant polymers sold under the Proteus®, and Sanalite® brands. For more than 30 years, Poly Hi Solidur has been recognized for consistent, reliable products, highly qualified staff and innovative ideas, earning a reputation throughout the world for providing long-term, cost-effective solutions for applications in nearly every major industry. Whether it's the aerospace industry, food packaging/processing plants, seaports or recreation, Poly Hi Solidur products and materials are hard at work maintaining the integrity of original equipment, reducing part replacements and associated costs, minimizing downtime, reducing noise, making good systems better and helping improve the bottom line for thousands of companies.

Menasha
Menasha Corporation (www.menasha.com), owner of Poly Hi Solidur, is based in Neenah, Wis., U.S. Established in 1849, Menasha Corporation is one of America’s oldest privately held manufacturing companies, and specializes in corrugated packaging and high quality Point-of-Purchase displays, plastic returnable packaging and returnable material handling services, in-store consumer promotion, and pharmaceutical labeling and packaging. The $1 billion company has more than 3500 employees working from facilities located across the US.

Zurich, June 27, 2005