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Press release - 8 July 2005

CapMan exits Aurajoki Oy

The funds managed/advised by CapMan have realised their investment in Aurajoki Oy, a company specialised in metal surface treatments. CapMan funds, Nordea Bank Finland and the other owners of the company have sold their holdings to an investor consortium lead by Primaca Partners Oy. The transaction price is EUR 6.7 million and it is expected that the transaction will be finalised by the end of August. The funds’ exit from Aurajoki Oy does not impact on CapMan Plc’s result for 2005 because the funds exiting the investment are not yet generating carried interest.

CapMan funds Finnventure IV and Finnmezzanine II invested in Aurajoki Oy in 1999. The funds’ ownership share in the company was about 72% prior to the exit. In the past few years Aurajoki Oy’s business has developed favourably. The company’s turnover was EUR 18 million in 2004 and it had some 210 employees. The Aurajoki group consists of Aurajoki Oy and its two subsidiaries AuraCoat Oy and AuraColor Oy. Aurajoki operates four hot dip galvanizing plants, AuraCoat operates two electro galvanizing plants and AuraColor Oy provides industrial painting services. The investment in Aurajoki Oy has been good for investors in CapMan funds.

”Aurajoki Oy is the industry’s market leader in Finland. The company has good prospects in both hot-dip galvanising and electrolytic metal plating. The favourable development of Aurajoki’s customer segments also gives a solid foundation for the further development of the company’s business,” says Sanna Argillander, CapMan Partner.

”The good development work and skilled employees at Aurajoki Oy create excellent preconditions for the company’s growth in Finland and neighbouring areas, as well as for further improvement in profitability. In addition the company’s expertise and service orientation enable Aurajoki to expand its offerings as an outsourcing alternative outside the core businesses of the construction industry,” comments Veli-Matti Mynttinen, Managing Director, Primaca Partners Oy.

”An experienced domestic investor group is an ideal owner for Aurajoki Oy. Metal surface treatment is a local business, where a visible and known owner is important. The new owners will also be able to give us good background support in the company’s internationalisation. We expect our business to grow strongly in future,” says Toni Casagrande, Managing Director, Aurajoki Oy.

MCF Corporate Finance has acted as a financial advisor for the sellers in the transaction.

For further information, please contact:
Tuomo Raasio, Senior Partner, CapMan, tel. +358 9 6155 8304
Veli-Matti Mynttinen, Partner, Managing Director, Primaca Partners Oy, tel. +358 50 2895
Toni Casagrande, Managing Director, Aurajoki Oy, tel. +358 400 501 883

CapMan Group
CapMan is one of the leading private equity investors in the Nordic countries and specialises in middle market buyouts in various industry sectors, technology investments in the IT and communications sectors and investments in life science companies. In addition, CapMan manages/advises private equity real estate funds. The CapMan team comprises around 95 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan manages/advises Nordic funds with approx. EUR 1.9 billion in total capital. To date, the funds managed/advised by CapMan have invested in 141 companies in the Nordic countries and exited from 73 companies. The latest investments are made in Norwegian Cardinal Foods AS, Finnish Moventas Oy (formerly Metso Drives Oy), Swedish SciBase AB and Danish Anhydro Group. The portfolio of CapMan’s first private equity real estate fund consists of 17 commercial properties in the Helsinki metropolitan area. CapMan Plc is listed on the Main List of the Helsinki Stock Exchange.

Aurajoki Oy
Aurajoki Oy is a specialist in metal surface treatments. The company was founded in 1967 and it has served Finnish industry and construction for the majority of its more than 35-year history. Aurajoki Oy’s customer base includes construction, shipbuilding, consumer goods and electronics industries among others. The company surfaces more than 40,000 tonnes of metal annually, from heavy metal structures to goods of just a few millimetres in size. Aurajoki Oy’s turnover was MEUR 18 in 2004 and it employs some 210 persons. www.aurajoki.fi

Primaca Partners Oy
Primaca Partners Oy was founded at the start of 2005. The company specialises in direct private equity investments with a focus on small and middle market Finnish buyouts. Primaca Partners Oy acts as an expert between investors and companies that require business development and finance. The company manages/advises invested capital for each target and it enables value creation by active involvement in the portfolio company’s operations, together with the operative management, to develop the company’s strategy, structure and internal business model. The owners of Primaca Partners Oy are private individuals with extensive and well-rounded business experience.

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