Avon Automotive Management Group Closes Transaction

CADILLAC, Mich., Aug. 21, 2006 -- Avon Automotive has closed its management-led buyout with Avon Rubber p.l.c., acquiring the firm's automotive division with a renewed commitment to outstanding product quality and customer service.

Avon Automotive becomes one of the industry's leading global suppliers of low-pressure hoses for air-induction, fuel and coolant systems as well as vibration-management products.

The business generates net annual revenue of approximately $349 million. It primarily serves the automotive, heavy truck, small engine and recreational vehicle industries.

"We plan to focus on long-term growth and technological development in automotive and related industries," says Lee Richards, president, Avon Automotive, who led the buyout announced last May.

Richards says the company intends to grow both internally and through acquisition. It plans to build on the strength of its diversified client base within automotive original equipment manufacturers, tier one and small-engine markets.

"Red Diamond Capital, our partner in this transaction, supports our business model and is willing to support our growth through capital investment," he adds.

"We identified a need to further strengthen the company with investment capital that would help grow the operations that serve the price-sensitive and quality-driven automotive industry and meet the needs of this market."

In addition to its headquarters in Cadillac, Avon Automotive will operate 12 manufacturing facilities in the U.S., Mexico, France, Spain, Portugal, the Czech Republic, India and Turkey. The company employs 3,500 people.

Richards says he anticipates no fundamental change to Avon Automotive operations.

"We believe our new position as a stand-alone business will provide substantial new business opportunity for Avon Automotive and important job security for our employees around the world," adds Richards.

"Simply, we have strengthened our ability to compete more effectively and vigorously in the global automotive components market."

He also expects the acquisition will have a positive impact on all of Avon Automotive's business operations, as well as its customer, supplier and employee relationships.

Specific financial terms of the acquisition are not disclosed.

Avon Automotive's website address is http://www.avonauto.com/ .