Munters Acquires Des Champs Technologies, experts in Indoor Air Quality and Energy Recovery

Munters has entered into an agreement to acquire U.S.-based Des Champs Technologies, which holds a technology-leading position in energy-efficient air treatment solutions, complementing Munters Dehumidification product range. The company employs approximately 200 people, and projected 2007 revenue is US$ 38 Million.

Located in Buena Vista, Virginia, USA, Des Champs principally manufactures custom outside air conditioning equipment for commercial buildings based on its expertise in heat exchangers, dehumidification and indirect evaporative cooling. Des Champs also manufactures industrial heat exchangers. With this acquisition, Munters dramatically strengthens its position as a leading supplier of energy-efficient climate control solutions for commercial buildings.

"Des Champs provides an exceptional fit with our Commercial Business Area within the Dehumidification Division," says Mike McDonald, President, Dehumidification Division.

"This expansion aligns with our strategy as an innovation leader in energy-efficient indoor air quality solutions for our customers. The acquisition enhances our expertise in energy recovery and indirect evaporative cooling, where Des Champs holds a technology-leading position. The broader product range and technology integration opportunities with our unique energy-efficient cooling and dehumidification products, will allow our joint customers the opportunity to further reduce their energy consumption. It also enables us to provide solutions for all climates, significantly increasing our sales potential in a growing market." Mike concludes.

Des Champs Technologies offers a full range of world-class technologies for energy-efficient packaged systems with plate-type and heat pipe heat exchangers, sensible and total energy recovery wheels, polymer tube indirect evaporative coolers, and welded industrial heat exchangers. The core strength is in offering optimal, often unique solutions to meet customers’ needs.

The most significant product range is the Wringer™ series. The Wringer™ is a packaged make-up air unit that incorporates a counter-flow heat-exchanger to pre-cool and reheat the outside air. It is specifically designed to address indoor-air-quality problems by controlling space humidity and supplying the required amount of fully conditioned outdoor air with lowered energy consumption.
A pioneer of indirect evaporative cooling systems, Des Champs Technologies also produces high quality indirect evaporative coolers, which dramatically reduce the energy consumption for conditioning outdoor air in dry climates.

The combined business will be able to accelerate growth through synergies in product integration, technology and distribution. In addition, cost reductions in purchasing, manufacturing and administration are anticipated. Des Champs' present management team will remain.

Munters has entered into an agreement to acquire 100% of the shares in Entrodyne Corporation, the holding company of Des Champs Technologies for approximately US$ 37 million in cash. The transaction is expected to close shortly, as it is not subject to competition authority clearance, but only to fulfillment of certain ordinary pre-closing events. The impact on Munters’ consolidated earnings per share is anticipated to be positive in 2007.

For further information, please see www.deschamps.com

Sollentuna 4 April 2007

Lars Engström
Chief Executive Officer