CLES, Italy, 3rd July, 2008
Diatec today announced that it has signed a definitive agreement to acquire the coated product assets of Arkwright, Inc., a manufacturer of a wide range of digitally printable papers, films, and specialty substrates. Arkwright is a wholly owned subsidiary of Océ NV. Sales related to the assets total about $65 ml. About 200 people will transfer with the business.

Based in Coventry, Rhode Island, Arkwright’s coated products business is an important supplier of inkjet and laser printable media sold under private label for printer manufacturers, distributors, and major brands. The products serve a wide range of applications in display graphics, point-of-sale advertising, photo reproduction, office, and at-home printing.

The acquisition extends Diatec’s global position in the development and production of digital imaging media. From a European network of five factories in four countries, the Arkwright assets provide Diatec a North American manufacturing base and significant distribution channels.

Apart from improving its supply chain to the Americas, these assets, together with those in Europe, will enable the combined enterprise to efficiently supply its global accounts - - brand owners doing business around the world that seek matched solutions in all the regions they serve. The deal also adds to the company’s research and development network which is targeting a variety of emerging industrial markets for engineered films and coated substrates.

The assets will be merged with Diatec’s US sales and distribution company, Sihl Inc., and renamed Arkwright Advanced Coating, Inc.

“Acquisition of a high quality American coating asset has been a strategic goal for several years,” stated Diego Mosna, founder and Chairman of the Diatec Group. “Finding well maintained assets that had sufficient economy of scale, and that were kept productive by way of new product innovations, proved to be more of a challenge than we imagined. In spite of the fact that this business became non-strategic, they kept the business healthy and continued to invest into it. It’s an excellent fit with the rest of the Diatec Group.”

“Our decision to divest the coated products business of Arkwright developed over time as we prefer to invest in our core technology of digital print devices and partner over time with companies like Diatec that invest in their core technology of coating”, stated Tom Egelund, Executive vice-President Océ Wide Format Printing Systems. “It remains very much a part of our strategy to sell digital print solutions, including media, through our Wide Format Printing Systems business.

The acquisition is subject to customary closing conditions, and is expected to close in the near future. Assets will be purchased for a total amount of 27.4 ml Euro.

About Diatec Group
Diatec Group is a leading global supplier focused on coating, converting and marketing of medias for technical drawing, medias for digital copying and printing of images with ink-jet, laser & electrostatic technology, medias for all modern graphic applications and specialties for recording and identification purposes.

A specific business unit is dedicated to production and marketing of papers and HD film for the garment industry and hot melt adhesive. Headquartered in Cles, Italy, group companies employs approximately 1.000 people in 22 manufacturing and trading companies around the world (more than 50 researchers supporting the plants and one specific company dedicated to R&D). Founded in early ‘70s by Diego Mosna, its Chairman and President, the group enhanced hugely in size in 2003 when it acquired the primary businesses of Sihl Group.

About Océ
Océ is one of the world’s leading providers of document management and printing for professionals. The broad Océ offering includes office printings and copying systems, high speed digital production printers and wide format printing systems for both technical documentation and color display graphics. Océ is also a foremost supplier of document management outsourcing. Many of the world’s Fortune 500 companies and leading commercial printers are Océ customers.

The company was founded in 1877, with headquarters in Venlo, The Netherlands, Océ is active in over 90 countries and employs some 24.000 people worldwide.

Total revenues in 2007 amounted to Euro 3.1 billion. Océ is listed on Euronext in Amsterdam. For more information on Océ, visit www.oce.com.

Press contact
Sihl USA, Phil Hursh / President, Sihl Inc
Tel.: 800-366-7393, E-Mail: phil.hursh@sihlusa.com

Sihl Europe, Katja Behler / Communication Manager
Tel.: 0049-2421-597-306, E-Mail: katja.behler@sihl.de

Agency: image plus Office Stuttgart, Jürgen Neitzel
Tel.: 0711 / 440 800 63, EMail: jneitzel@neitzel-services.de