The Magni Group Acquires GDCS Coating Technology

BIRMINGHAM, Mich., Oct. 13, 2003 -- The Magni Group, a leading manufacturer of fastener, brake and fuel system coatings, has announced the acquisition of the coating technologies of GDCS Inc. GDCS is a manufacturer of specialty coatings, which complement The Magni Group's line of coating solutions.

GDCS' world-class coating technologies acquired by The Magni Group are able to withstand high temperatures and are aimed at specific markets. They include WG250, a water-based coating for brake rotors and drums and G34, a coating for exhaust systems and mufflers. The GDCS coatings are "black coatings" which enhance corrosion protection and provide the part with a quality appearance.

"GDCS is the largest supplier of black coatings for mufflers in North America," said Bob Keagy, Vice-President of Sales for The Magni Group. "Magni's per-vehicle content continues to grow and our OEM and tiered customers have looked to us for a high level of customer service. First and second tier suppliers are now expected to be corrosion experts on the parts they supply. We help bridge this expectation gap by cost effectively coating many different components. The acquisition of GDCS coating technologies further enhances our leadership position."

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.