Sarna Sells American Division, Sarnamotive Blue Water, to BWAS Holdings, Inc., an Affiliate of KPS Special Situations Fund II

Sale allows Sarna to concentrate on continuation, further expansion of Sarnafil division

SARNEN, Switzerland, Sept. 29 -- The Sarna Group today announced the sale of its U.S. automotive division, Sarnamotive Blue Water, to BWAS Holdings, Inc., an affiliate of KPS Special Situations Fund II (KPS), a New York-based private equity fund. The strategic sale of Sarnamotive Blue Water to KPS allows the Sarna Group to concentrate on the continuation and further expansion of its Sarnafil division, while allowing the U.S. automotive division to experience greater future growth.

KPS intends to continue operating the company's six production facilities in Michigan and subsidiary in Mexico City, and to honor all customer contracts. Additionally, KPS plans to invest in new equipment and a plant expansion in Michigan to facilitate further growth of the business.

In 2000, the Sarna Group purchased Blue Water Plastics, Inc. to form Sarnamotive Blue Water. Since the purchase, the Sarna Group has invested in the automotive division and restructured its management to create a financially strong company. In the first half of 2005, Sarnamotive Blue Water generated sales of 99 million Swiss francs ($76.5 million).

In December 2004, the Sarna Group announced plans to divest its entire automotive business to concentrate on further expansion of the successful Sarnafil Division. The Sarna Group will distribute an assessment of all sales activity after all automotive divisions have been divested.

About KPS Special Situations Funds

KPS Special Situations Funds are a family of private equity funds with over $600 million of committed capital focused on constructive investing in restructurings, turnarounds and other special situations. The KPS investment strategy and portfolio companies are described in detail at the firm's website: http://www.kpsfund.com/

About the Sarna Group

Quoted on the Zurich stock exchange, Sarna Polymer Holding Inc. is an internationally active polymer processor with group headquarters in Sarnen, Switzerland. In December 2004, Sarna announced the sale of its automotive activities in order to concentrate on the Sarnafil Division business. In 2004, Sarna generated sales of 880.8 million Swiss francs with a workforce of 3,800. In Switzerland, the company employs approximately 420 people. (http://www.sarna.com/ )