ORAFOL and Reflexite Announce Completion of Transaction


ORAFOL and Reflexite Announce Completion of Transaction to Create one of the World's Leading Global Reflective Materials, Graphic Products and Industrial Tapes Groups

26 August 2011 -- Today, ORAFOL Europe GmbH is pleased to announce that Reflexite Corporation is now part of the ORAFOL Europe GmbH GROUP.

As one of the world's leading suppliers of reflective materials, graphic products and industrial tapes the ORAFOL GROUP has global presence, a strong brand built through customer engagement and a focus on being "Engineered to Perform Better™''.

Reflexite has built its globally recognized brand with a focus on "Saving Lives and Saving Energy™" as one of the world's leading manufacturers of reflective materials and energy saving optical components and films. As part of the ORAFOL GROUP, Reflexite will continue to refine and grow its current strategy and will remain an independent entity consolidated into ORAFOL International, Inc., ORAFOL's U.S. holding company.

"The benefits of the partnership are obvious and multi-faceted” said Dr. Michael Foley, CEO of Reflexite. “ORAFOL is a company with a proven willingness to invest in technology and capacity expansion, which will enable Reflexite to continue to grow and expand to our full potential. As a privately-held company, ORAFOL has the same long-term decision perspective that has been a hallmark of Reflexite’s business philosophy and success over the last 40 years. We have always believed that if you make good long term decisions, you will get good short term results. ORAFOL as a well-capitalized private company is in the rare position to enjoy the same perspective.” Following the completion of the transaction, both ORAFOL and Reflexite will provide enhanced offerings to their global customer base as a leading supplier of reflective materials, graphic products and industrial tapes.

"We are confident that this transaction has assembled a very focused and highly motivated team. The combined strengths of both companies has positioned the Orafol Group to realize a vision based on the highest of standards," said Dr. Holger Loclair, Managing Director of the ORAFOL GROUP.

The completion of the transaction was largely made possible by the consent of theemployees and directors of Reflexite to the transaction: Reflexite has been majority owned by its employees and directors, through direct stock ownership and through the company's 25 year old Employee Stock Ownership Plan. The shareholder vote to accept the Merger Agreement was unanimous. “Hundreds of our employees, who are also our shareholders, have spoken, and the message is clear,” said Dave Edgar, Reflexite's Vice President of Human Resources. “We highly value the support of the employees of Reflexite proving their trust in the excellent cultural and strategic fit, and the long term opportunities for them within the ORAFOL GROUP.”

ORAFOL and Reflexite will share additional information with their respective customers in September.

UBS Investment Bank and Robinson & Cole LLCP acted as financial and legal advisors, respectively, to Reflexite in this transaction.

KPMG and KPMG Law acted as financial, transactional, and legal advisors, respectively, to ORAFOL in this transaction.

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