Isola Announces Completion of European Restructuring

CHANDLER, ARIZONA, November 30, 2004 – ISOLA Group today, reported that is has completed a major portion of its European restructuring plan. The moves included the relocation of full-scale production from the UK to its German and Italian operations. The Cumbernauld UK operation will maintain partial production capabilities to support quick turns and special products. The restructuring provides Isola with two world-class facilities on the continent, and a very flexible service center strategically located in the UK.

“We are now positioned to fully leverage our production capacity in Germany and Italy, which will enhance Isola’s competitive position,” said Raymond Sharpe, President and CEO. “This capacity utilization when coupled with the UK service center will allow for greater flexibility to support our customer base.”

As a result of the restructuring, the company also relocated a sizeable portion of the basic research and development center to Chandler, Arizona. To insure timely response to customer requirements and technical issues a new customer service facility has been built in Duren.

Tarun Amla, Vice President and CTO, stated, “we have centralized basic research in the US while at the same time building an organization in Europe to support regional needs. We have retained development people in Germany and support them with dedicated OEM Market Development personnel.” Commenting on marketing, Sharpe added, “we feel this combination of resources will allow our product development to be more customer focused and market driven.”

In reviewing the European operations, Augusto Meozzi, President Isola Europe, stated “the company under new leadership, supported by our strategic investors, (TPG and Redfern Partners) continues to invest in productivity and technology improvements which benefit our customer base. In Duren for example we have increased our chemical blending capacity and renovated our press area to provide greater manufacturing flexibility.”

Sharpe said Europe’s operating performance continues to strengthen as a result of commitments to Lean and 6 Sigma manufacturing techniques. “We have appointed both regional and individual site leaders to drive the program. During December, these European leaders will join a global Isola operations team in Japan for an intensive nine-day boot camp focused on achieving world class performance.” Commenting further Sharpe stated, “These investments in capital, human resources and training continue to reinforce our commitment to the European market.”

30 November 2004

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