Denali Completes Welna Acquisition.

HOUSTON--(BUSINESS WIRE)--July 2, 1999--

Denali Incorporated (Nasdaq:DNLI) announced today that it has completed the acquisition of Welna N.V. (AEX:WELNA).

Welna is a 120-year-old company that operates through two divisions. Welna Synthetics designs, manufactures, and installs all forms of FRP pipe systems, vessels and other related equipment requiring high levels of corrosion resistance. Welna Trade is a trading firm that specializes in high quality products and engineered systems for power generation, water treatment, and paper and chemical processing industries. Welna is headquartered in Oldenzaal, The Netherlands, and markets its products globally through its subsidiaries in The Netherlands, Germany, United Kingdom, Belgium, Sweden, France, Poland, and Thailand.

This transaction creates the world's largest engineered fiberglass-reinforced plastics (FRP) company dedicated to providing corrosion-resistant products and services to process industries, including chemical processing, microelectronics, pulp and paper, power and others.

"Combining North America's and Europe's leading FRP products companies forms an excellent base to create value for our customers, suppliers, employees, and shareholders," commented Edward de Boer, president and chief executive officer of Denali Incorporated. "We are looking forward to continuing to build our engineering and technology base with Welna and integrating our capabilities to provide more complete solutions to our customers' needs."

Denali Incorporated is a provider of fluid handling products, specializing in corrosion-resistant applications in process industries. The company is a manufacturer of engineered fiberglass-composite products, including tanks, vessels, and piping systems, as well as steel, aboveground storage tanks. Denali Incorporated is headquartered in Houston, Texas, and markets its products nationally through its subsidiaries Containment Solutions (Houston), Ershigs (Bellingham, WA), Fibercast (Tulsa, OK), SEFCO (Tulsa, OK), Plasti-Fab (Tualatin, OR), and Belco (Belton, TX).

For more information on Denali Incorporated, please contact Mel Carter, vice president of business development, at 713/627-0933, or visit the Denali Incorporated Website at www.denaliincorporated.com.

NOTE: This news release contains certain forward-looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995 and information relating to the company and its subsidiaries that are based on the beliefs of the company's management as well as assumptions made by and information currently available to the company management. When used in this report, the words, "anticipate", "believe", "estimate", "expect", and "intend" and words or phrases of similar import, as they relate to the company or its subsidiaries or company management, are intended to identify forward-looking statements. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.