Further strategic portfolio streamlining

IWKA has taken a further important step toward focusing on its core businesses.As part of its previously announced portfolio streamlining program, IWKA has soldanother non-core business. On December 22, 2005, the IWKA Group sold formerProcess Technology Division company IWKA Balg- und Kompensatoren-Technologie GmbH and its subsidiaries (Flexible Solutions Group), with economiceffect as of December 31, 2005/January 1, 2006. The deal was signed with agroup company of financial investor Odewald & Compagnie Gesellschaft fürBeteiligungen mbH, Berlin, and is subject to approval by the relevant antitrustauthorities. The parties have agreed not to disclose the conditions of the sale. Therevenues from the sale will substantially reduce the IWKA Group's net debt in2006.

Odewald & Compagnie is one of Germany's leading independent private equityinvestors and manages assets of about EUR 500 million. Founded in 1997, thecompany is headquartered in Berlin and invests in medium-size established andgrowth companies in German-speaking countries. Investors in Odewald &Compagnie funds include institutional German and international investors, as wellas wealth management companies and private investors.

Flexible Solutions Group (FSG) is one of the world's leading manufacturers offlexible, mechanical components for exhaust systems and engine management.Customers include the automotive industry and its subsuppliers, as well asgeneral industry. FSG supplies metal bellows, metal hoses and expansion jointsto power technology companies, the plant engineering sector, as well theaerospace, HVAC industries and general purpose piping with control elements, aswell as recirculation systems for exhaust gas and expansion fittings. FlexibleSolutions Group, which has over 1,000 employees, is expected to generate salesrevenues of nearly EUR 150 million in 2005.