The Magni Group Acquires Lackfabrik Dr. Schmid

Acquisition creates opportunity for Magni to expand global production, distribution

BIRMINGHAM, Mich., Feb. 7 -- The Magni Group, a leading manufacturer of fastener, brake and fuel system coatings, has announced the acquisition of Lackfabrik Dr. Schmid located in Schorndorf, Germany. Lackfabrik Dr. Schmid is a manufacturer of specialty coatings and conventional industrial coatings. The acquisition was effective January 1, 2003. Lackfabrik Dr. Schmid will become a subsidiary of Magni Europe.

"This acquisition will allow Magni Europe to better serve our growing overseas customer base by having Magni coatings manufactured in Germany," said Doug Paul, Vice-President of Marketing. "We will be expanding the Dr. Schmid production capacity to incorporate production of Magni's extensive line of coatings."

Dr. Schmid currently manufactures a number of unique specialty and industrial coatings. They serve customers throughout Europe as well as in India, Brazil, New Zealand and Turkey. Additional global markets for Dr. Schmid's current products will be assessed for future growth and supported by Magni's sales and marketing resources.

Founded in 1974, The Magni Group has become America's fastest growing coating company. With customers on five continents, the company's primary business is extending the customer's product life by eliminating corrosion. In addition to corrosion control, Magni coatings also provide lubricity and conductivity, which can improve product performance. Magni develops, manufactures, and applies their protective coating systems for a wide variety of metal products. Magni manufactures both solvent- and waterborne liquid coatings used for rust prevention on metal surfaces. These coatings are sold to a great variety of industrial manufacturers including coil coaters. The primary market for Magni Group's products is the automobile industry. In addition to selling coatings, the group also applies the coatings to automobile parts and fasteners.

The Magni Group, Inc. (Magni) is based in Birmingham, Michigan. Magni includes two research and manufacturing sites known as Magni Industries, Inc. (Detroit, Michigan and Independence, Kentucky), and two metal finishing plants, Depor Industries, Inc. (Troy, Michigan) and Anti-Friction Enterprises, Ltd. (Rexdale, Ontario, Canada). Magni Europe, based in Saint-Ouen, France, includes a research and development facility and a full service supplier of Magni products for the European market.

Source: The Magni Group

CONTACT: Douglas Paul, Vice President, Marketing of The Magni Group,
+1-248-647-4500, fax: +1-248-647-7506, dpaul@themagnigroup.com ; or Hanno
Krause-Heringer, President of Magni Europe, 011-33-1-49-21-11-00,
fax: 011-33-1-49-21-11-09, hannokrauseheringer@magnieurope.com