We presented our range of products during exhibition MOSBUILD held on 01.- 04.04.08 in Moscow. The event gave us a great opportunity to meet our clients form the east region, where further expansion is planned. We would like to thank everyone for visiting our stand and invite you for cooperation.

We shall be honoured to present you our range of products during the exhibition MOSBUILD held on 01-04.04.2008 in Moscow.
You are welcome to visit our stand number D147, Crocus Expo;
Exhibition hall: 1; Hall 4; Doors & Lock.

Mercor SA is to acquire a Spanish business from the same industry sector, Tecresa Protecction Pasiva, by acquiring 100% shares of its holding company - Tecresa Catalunya S.L. The initial transaction value amounts to EUR 35,24. The transaction is Mercor’s major step towards acquiring a position of one of the European industry leaders.

Tecresa Protecction Pasiva is a manufacturer and owner of the technology for production of sprinkler and fire protection systems for building structures. Mercor is acquiring a 100 percent stake in the Spanish company’s equity.

“In accordance with the announcements made during the IPO, next to the dynamic organic growth, the Mercor Group continues its acquisition strategy. We’re acquiring Tecresa at a very attractive price. I’m convinced that acquisition of the Spanish company that perfectly supplements the operating profile of the Mercor Group will contribute not only to strengthening of our strength, but also to building a greater shareholders’ value for the entire group.", said Mr Marian Popinigis, President of the Management Board of Mercor SA.  “This transaction is clearly bringing us closer to achieving the position of one of the European industry leaders and is the first of the acquisitions we plan in the near future.", added Krzysztof Krempeć,  Vice President of the Management Board of Mercor SA.

TERMS AND CONDITIONS OF THE TRANSACTION

The basic acquisition price has been set at EUR 30.44m. The final transaction price shall be calculated after Tecresa has presented audited financial performance for 2007. It implies the P/E ratio at the level of 10,4 times net profit of the company for 2007. Payment shall be made in two instalments: 85 percent of the basic acquisition price shall be payable on the agreement execution date, while the remaining amount shall be paid after the final acquisition price has been determined. Mercor will finance the acquisition with funds from the IPO that took place in July 2007 (pursuant to the prospectus the company is allocating PLN 33 m for acquisition projects) and with own funds and a loan.

BENEFITS UNDERLYING THE ACQUISITION

Mercor has for years been involved in fire protection systems for building structures. So far the Company has used such products offered by external suppliers. The acquisition shall result in a strong entrance of Mercor into new geographical markets and in obtaining a technology owned by Tecresa and using the company’s products across the Mercor Group. This will provide for product-related synergies and efficient execution of a cross-selling model that Mercor has already been successfully implementing together with Hasil, its Czech company.

The Mercor Group is one of the European leading manufacturers of smoke and heat exhaust systems, and rooflights. In terms of the product range TECRESA is a leading supplier on the Spanish market. Until now, the company has used products offered by external suppliers.

Within the Group the acquisition will effectively provide for using not only a new distribution channel, but also geographical expansion of the Group's selling markets.

INFORMATION ON TECRESA

Operating in the sector of passive fire safety systems, the Tecresa Group is made up of two Spanish companies. Tecresa Catalunya (TC) owns a 100 percent stake in Tecresa Proteccion Pasiva (TPP), a company that in the group is responsible for production and sales. Tecresa Catalunya is mainly a holding company. It also acts as a distributor of TPP products in the Catalonia region.

Tecresa operates in two major segments in the market of passive fire safety systems, including:

• safety systems for building structures in which it offers:
  - TECWOOL (a system of refractory mortar)
  - TECBOR (a system of fire protection boards)
  Technologies for the two systems and their brands are owned by Tecresa.
• smoke and heat exhaust system and rooflights.

The offices of Teresa Proteccion Pasiva are located in Leganes (Madrid). The Company has branches located in Barcelona and Saragossa, and also agencies (representative offices) in Andalusia and Galicia. The history of the Tecresa Group goes back to 1998. TPP company was established in 1998. The list of its clients and projects completed to date includes major industrial and public facilities. The Company has among others co-operated with IKEA, PEUGEOT, COCA-COLA, WHIRPOOL, FLEX, SANITAS, and OPEL.




For more information please see the website: www.tecresa.es

RESS RELEASE
January 12, 2006

Embargo till 12.00 January 12, 2005 

Innova Capital invests in Mercor S.A.

Innova/3 LP Fund advised by Innova Capital, has acquired 37,4% shares in Mercor S.A., one of the leading manufacturer of fire protection systems in CEE.

WARSAW - In January 2006 Innova Capital, a leading investment advisor for private equity funds in Central Europe, has completed acquisition of 37,4% shares in Gdańsk-based Mercor S.A. ("Mercor"). The Fund purchased a stake of existing shares from founders as well as increased company’s capital, investing in the project total consideration of PLN 51,2 milion. 

Mercor is one of the leading manufacturers of fire protection systems in Central and Eastern Europe, providing full range of solutions aimed at protecting human lives and facilitating evacuation in case of fire. To mention a few: smoke and heat exhaustion systems, fireproof partitions (e.g. fireproof doors and gates), as well as fire protection of building structures. Apart from the Polish market, where Mercor reports the largest revenues, the company has presence in most of European markets. In the mid-2005 Mercor acquired shares in Hasil, the leading manufacturer of fireproof doors in Czech and Slovakian market. 

Mercor’s group consolidated 2005 revenues amounted to approximately PLN 170 milion.

Marian Popinigis, chairman of Mercor and one of the company co-founders comments the transaction: "Trends in construction market growth (after years of stagnation) as well as an increasing demand on safety products and services indicate that fire protection systems are now and will be in forthcoming years one of the most dynamic growing market niche. Up to now there was no leader in the sector in CEE. This why, we have taken the opportunity to become one.  Innova Capital, owing to its large expertise and know how in acquisitions seems to be an ideal partner that can significantly help to reach our goal".

Krzysztof Krawczyk, Managing Director at Innova Capital, responsible for the transaction says: "We have been looking at Mercor’s development over years, and are impressed with the company’s achievements, who become number one in Poland and one of the leaders in this sector in Central Europe.  Now, together with company’s owners, we plan to strengthen this market leadership, not excluding further acquisitions in Central and Western Europe.  We believe that due to highly qualified workforce available at significantly lower cost then in Western European countries, Polish manufacturing companies represent a tremendous growth potential in the entire European Union."
Krzysztof Krempeć, Vice-chairman of Mercor adds  "The deal done with Innova Capital is for our company an important step forward to have Mercor listed on Warsaw Stock Exchange, which we plan to take place probably in 2007. We count on assistance provided by our partner with such financial expertise in conducting public offerings and in further development of our company".

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Mercor SA  (www.mercor.com.pl) Gdańsk based, is the largest Polish and one of the largest Central European companies specializing in fire protection systems. It is the only company on the market with significant share in all market segments. In 2004 the company achieved sales revenues of PLN 94.3 m and net profit of PLN 8.1m. Combined revenues of  Mercor Group's companies in 2005 amounted to approximately PLN 170 m. In  mid-2005 Mercor acquired 50% of share capital of Hasil - a clear leader on Czech and Slovak market in fireproof partitions.  Mercor is the only entity on the market with products offer covering all four major product segments of the industry: fireproof partitions, smoke and heat exhaustion systems, fire ventilation systems and fire protection of building structures.  As of the end of 2005 Mercor employed 411 people.

Innova Capital (www.innovacap.com) is a leading private equity player in Central Europe, advising three investment funds active in the region: Poland Partners, L.P., Innova/98, L.P. and Innova/3, L.P. Innova’s strategy centers on building companies into market leaders that can compete with the best in their fields worldwide. Innova funds mainly invest in media, financial services, IT/telecommunication, business services and manufacturing. Innova Capital has been active on the market since 1994, and has invested over USD 250 m in 30 companies, including PolCard, Euronet, Town&City, @Entertainment (presently called UPC), EBCC, Orange Slovakia. 

INNOVA CAPITAL LATEST HIGHLIGTS

1. Two investment funds, advised by Innova Capital sold in October approximately 11% of all shares in Polcard S.A., the leading debit and credit card merchant transaction acquirer and processor in Poland, established in 1990. The buyer was GTECH Corporation, the strategic co-investor in Polcard. After the transaction, the two investments funds managed by Innova Capital still own more than 25% of Polcard shares. In May 2003, Innova Capital, along with GTECH Corporation, purchased 99,67% shares of Polcard from 6 Polish banks and Orbis. The Association of Polish Banks did not changed its stake in the business. Innova`s funds obtained excellent returns on investment with an IRR exceeding 60% and tripling the value of initial investment. What’s more Innova delivered returns to their investors earlier than expected. 

2. In the second half of October Innova Capital exited from Orange Slovakia, the largest mobile communications operator in Slovakia. France Telecom acquired 36,12% of shares and took complete control of Orange Slovakia after signing an agreement with minority shareholders consortium, including two Innova Capital investment funds. The total value of the transaction was Eur 628 million and gained for Innova funds returns from 3,4 times to 2,4 times the money invested depending on the currency of the fund. Innova acquired shares in that investment, before Orange re-branding called Globtel, in 2001. The seller, minority consortium includes Innova/98 L.P., Innova/3 L.P., AIG New Europe Fund, Emerging Europe Infrastructure Fund, Polish Enterprise Fund IV L.P., Communications Venture Partners, Part’com FCPR, Metropolitan Life Insurance Company and European Bank for Reconstruction and Development.
3. On 22nd July 2005 GTS Poland signed an agreement to buy 97.5% stake in Energis Poland. The acquisition of Energis by GTS from National Grid and Bates Telecom Poland, where one of the shareholders is private equity fund managed by Innova Capital, was amongst the biggest consolidation moves in the sector in Central Europe. Combined revenues of Energis and GTS will exceed PLN 400m, which will position the new entity amongst the leaders of Poland’s alternative telecom providers for business clients, and will make GTS Central Europe a leader in the region.  Innova invested in Energis, Poland based on the company’s high growth potential and its industry. The decision to exit was driven by a strong interest from strategic investors, who have become active after Innova’s investment in Energis, as well as due to the objective of shareholders of, both Energis and GTS, to be in a cutting edge of consolidation of Polish telecom industry.