LSC to Become Part of the Voith Group

Heidenhem, Germany, 05 December 2006 - On 01 January 2007, LSC Process- und Laborsysteme GmbH will become an independent member of the Voith Group of Companies. Following joint deliberations, the incorporation of LSC into Voith Paper is now regarded as the best solution to achieve the goals set by both companies. The negotiations were concluded on 04 December 2006, with the signing of an acquisition agreement.

Ever since July 2002, a close contractual cooperation has existed between LSC Process- und Laborsysteme GmbH and Voith Paper Automation GmbH & Co. KG.

The decisive factor for this decision is the great importance attached to measurement systems, with scanners and sensors, as a strategic product of Voith Paper Automation's range of products. It is mainly these key components that are responsible for the expansion of Voith Paper Automation's business activities.

With the acquisition, the following goals are being pursued:

* Leadership in technology in the field of automation systems for the pulp and paper industry
* Expansion of the range of products
* Achievement of optimal customer satisfaction

This step will permit the measurement systems to be connected in a better way to the production line concerned. In addition, the joint process expertise and innovative strength of Voith Paper Automation and LSC, especially in the development of new products, will increasingly come to bear.

For customers in the pulp and paper industry, the familiar contact persons in both companies will stay the same to ensured continued long-term support of customers and further development of the LSC systems. LSC will continue to act as an independent product and system supplier to the paper and plastics industry from its location in Neuwied.

Voith Paper is a corporate division of Voith Group and is one of the leading partners in the paper industry. Established on 01 January 1867, Voith currently has 30,000 employees, USD 3.5 billion in sales, and more than 200 locations worldwide. It is one of the largest family-owned businesses in Europe.