Montagu Private Equity to acquire LOGSTOR from Axcel, Polaris and FIH.

STOCKHOLM, Sweden -- Following the formation in 2005 of the world's leading manufacturer of pre-insulated pipes, the current owners have decided to divest the Company to Montagu Private Equity.

LOGSTOR is the world's leading manufacturer of complete pre-insulated pipe systems for transportation of gases and liquids to the district heating and cooling, oil and gas, marine and industrial sectors. The Company sells its products globally in a market where rising energy prices are increasing the importance of efficient, energy-saving products and transport solutions. LOGSTOR was formed through the merger of Logstor Ror A/S and Alstom Power FlowSystems A/S in August 2005.

Montagu Private Equity has agreed to acquire LOGSTOR for an undisclosed amount from its current owners Axcel, Polaris and FIH. The acquisition has been made in partnership with the Company's incumbent management team. Preben Tolstrup will continue as CEO of LOGSTOR and Ole Andersen as Chairman of the Board.

The Company has sales of EUR 250 million in approximately 50 countries, EBITDA of more than EUR 25 million and is headquartered in Logstor, Denmark. It has 1,300 employees in eight European production facilities and eleven sales offices. In addition, it has distributors in 28 countries and joint ventures in Korea and China.

"LOGSTOR fits well into Montagu's strategy of investing in high-quality companies with strong, long-term customer relationships and outstanding management teams" said Matt Lyons, Director at Montagu Private Equity.

Preben Tolstrup, CEO of LOGSTOR commented "The management team has had a very constructive cooperation with the current owners and are proud of the achievements made over the last years. However, we are pleased that the deal with Montagu is now concluded. We are convinced that Montagu's financial resources and expertise will help us to take the Company to the next stage of its development and are delighted to have their support".

"We are pleased to have participated in the successful industrial development of LOGSTOR. During our co-ownership the Company has consolidated the industry and created a Danish-based market leader within pre-insulated pipes in line with our original strategy for the investment. LOGSTOR has developed positively and we are confident that this development will continue under the new ownership. We are very pleased with our investment in the Company" said Christian Frigast, Managing Partner of Axcel and Viggo Nedergaard Jensen, Managing Partner of Polaris in a joint statement.

The acquisition is subject to regulatory approvals.

Montagu Private Equity

Montagu is a leading private equity investor in the European mid-market with offices in London, Manchester, Paris, Dusseldorf and Stockholm. Over the last 35 years the firm has supported more than 400 businesses operating across a range of different segments and sectors, and currently has more than EUR 5 billion under management. Montagu is focused on investing in management buyouts in partnership with the incumbent management team. The firm has a strong track record of delivering superior returns over time, an extensive network of contacts and offers its portfolio companies capital, financial expertise and strategic assistance in order to unleash their full development and growth potential.

The investment in LOGSTOR is Montagu's third transaction in the Nordic region in the last year, following the strengthening of its Nordic team with the appointment of Matt Lyons and Peter Dahlberg. In 2005 Montagu divested Finnish Chemicals to Kemira for EUR 345 million and acquired VetXX from Danish pharmaceutical company Leo Pharma.

Visit www.montaguequity.com for more information.

Axcel

Axcel is a leading Danish industrial investment company (private equity) with an international outlook. Axcel invests in competitive large and medium-sized companies with potential for growth and value creation. Axcel finds it important to be an active and dedicated partner who contributes to the implementation of a development strategy and the strengthening of the companies' competitiveness. The shareholders comprise Argentum (Norway), ATP, Bestseller, Ernstrom Gruppen (Sweden), Equity Partners (Germany), FIH, Finanssektorens Pensionskasse, GSA Invest (the families behind hearing aid producer Widex), Industriens Pension, Investeringsselskabet af 30.04.1992, Jysk Holding (parent company of Jysk), Kirkbi, LD, Lombard Odier Darrier Hentsch (Schweiz), Mandatum (Finland), Masco (USA), Alpinvest (Holland), Nordea Bank, Nordea Liv & Pension, Pension Danmark, PFA, PKA, RealDania, SEB Pension, von Braun & Schreiber (Germany), Wagram (Holland) and a number of individual persons with an industrial background. Since 1995, Axcel has invested in 24 companies, of which more than half have subsequently been brought into new ownerships. Investments comprise Icopal (building materials industry), Royal Scandinavia (luxury goods) and DDD (medico equipment).

Visit www.axcel.dk for more information.

Polaris Private Equity

Polaris Private Equity is a Danish private equity firm investing in mature small and medium sized industrial and service sector businesses, based in Denmark and southern Sweden, with a sound development potential and revenues of EUR 25m or more. Polaris is currently an active investor in six businesses with aggregate revenues of about EUR 670m and more than 4,500 employees. Set up in 1999, the initial Polaris fund held capital commitments of EUR 210m, having invested in Sonion, Louis Poulsen, Vest-Wood, Dansk Droge, Novasol-dansommer, Novadan and LOGSTOR. Polaris has completed four exits: Novasol-dansommer (2002), Novadan (2004), Louis Poulsen's wholesale business (2005) and Vest-Wood (2005), all successfully sold to industrial buyers, some of which are major international companies. Final closing of Fund II was completed in March 2006 with total commitments of EUR 270m. To date, Fund II has invested in AddPro and Jetpak, both companies based in Sweden.

Visit www.polarisequity.dk for more information.

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