BASF Venture Capital Puts Money on Clean Air

    LUDWIGSHAFEN, Germany--May 19, 2003--BASF Venture Capital GmbH, Ludwigshafen, Germany, is investing in Catalytic Solutions, Inc. (CSI), a manufacturer of catalysts based on unique materials technologies. BASF is one of several investors in the $32.4 million Series D financing.
    Lead investor in this financing round is RockPort Capital Partners, L.P., together with EnerTech Capital Partners and Advent International Corporation. Numerous current investors, including Cinergy Ventures, NGen Enabling Technologies Fund, Cycad Group, LLC, and JP Morgan Partners, complete the round. The capital raised in this current round of financing is intended to drive forward product developments and expand marketing and production activities.
    CSI, with corporate headquarters in Oxnard, California, has developed a technology allowing catalysts to be produced with a significantly lower precious metal content, resulting in significant cost savings opportunities. These products feature superior catalytic performance and already meet regulatory requirements for the next emission standards. Applications for this proprietary Mixed Phase Catalyst MPC(R) technology are currently focused on three-way catalytic converters in automobiles.
    "CSI has developed a sustainable catalyst technology which has found acceptance on the market. We believe that this technology has good prospects of gaining significant market shares in the automotive emission control catalysis segment," commented Dr. Beate Ehle, Technical Managing Director of BASF Venture Capital GmbH.
    CSI has been supplying Honda since 2001, and has announced new programs with General Motors and Ford.
    "We regard BASF as an important strategic investor and see good scope for future cooperation, for example in potential industrial utilizations of the MPC(R) technology, and hope to benefit from BASF's experience as a supplier of the European automotive industry and as an important player in high performance catalysts for the chemical industry," adds Bill Anderson, CEO and co-founder of CSI.
    The company, established in 1996, also develops catalysts for cleaning exhaust gases of diesel engines and power generating gas turbines. CSI's know-how consists firstly in customizing systems that form highly selective and sintering resistant catalytic phases, while requiring much less precious metal. Secondly, the company is able to apply these catalyst systems onto substrates such as ceramic honeycomb structures.
    The company currently operates a production facility in Oxnard with an annual capacity of one million units. This capacity is to be tripled by the middle of this year. Further capacity expansions, including the addition of a location outside the USA, are in prospect. The planned investments will create 200 to 300 new jobs within the next five years.
    BASF Venture Capital GmbH was established in 2001 as a wholly owned subsidiary of BASF Future Business GmbH, Ludwigshafen, Germany, and participates in startup companies by providing venture capital to open up new growth potentials. In doing so, it focuses on companies with innovative business concepts and technologies in which chemistry is an important key to success. Investment is channeled towards companies that can demonstrate successful applications for their product developments as well as market demand. These companies also benefit from expertise from BASF Group companies.
    BASF is the world's leading chemical company, offering its customers a range of high-performance products, including chemicals, plastics, performance products, agricultural products, fine chemicals as well as crude oil and natural gas. Its distinctive approach to integration, known in German as "Verbund," is its strength. It enables BASF to achieve cost leadership and gives the company a competitive advantage. BASF conducts its business in accordance with the principles of sustainable development. In 2002, BASF had sales of about EUR 32 billion (circa $34 billion) and over 89,000 employees worldwide. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA) and Zurich (BAS). Further information on BASF is available on the Internet at www.basf.com.
    Catalytic Solutions, Inc. is a global developer and manufacturer of advanced catalytic coating solutions. The unique and proprietary Mixed Phase Catalyst ("MPC(R)") catalytic coating technology is fundamentally different from other approaches and enables CSI to produce catalyst formulations with superior catalytic performance, greater durability and cost-effectiveness for a wide range of environmental applications. Precise mass-production methods assure excellent coating control and predictable performance. CSI is a privately held company with corporate headquarters in Oxnard, California, and offices in Michigan, United Kingdom and Japan. For more information, visit www.catalyticsolutions.com .