18 December 2000
UM acquires two promising finished optics businesses 

UM has acquired V&S Scientific Ltd (London, UK) and Tayside Optical Technology Ltd (Dundee, UK) for a total amount of about EUR 8 million. These businesses will be integrated in UM Electro-Optic Materials, the world leader in the production of germanium and germanium-based advanced materials with applications in solar cells, infra-red systems, laser optics and optical fibres. UM Electro-Optic Materials is also a leading supplier of selenium, tellurium, indium, silicon and zinc selenide-based products for those applications.

These acquisitions are a critical step which will enable this business unit to extend the reach of its optic materials business line to the finished optics business. Through their expertise in the polishing, coating and assembly of optical materials, V&S Scientific Ltd and Tayside Optical Technology offer UM Electro-Optic Materials a new technological platform to provide further added value to its growing Optics business, especially for night vision and laser applications. In particular, they will provide some downstream integration for UM Electro-Optic Materials’ US affiliate Phase 4 Infrared (zinc selenide producer) and French affiliate, Vertex (chalcogenide glasses for low cost infra-red optics).

 V&S Scientific is specialised in the design and fabrication of CO₂ laser optical components, based on zinc selenide material. It is the only manufacturer in the world fully dedicated to making CO₂ laser optics. Through this specialisation and by working closely with customers to develop new products, V&S Scientific is able to offer state-of-the-art optical technology to the end-user market. Particular attention is paid to making high quality equipment available within a short period of time.

Grinding, polishing, assembling and testing of optical elements for laser applications are the core processes at V&S Scientific. The company and its 20 staff members will shortly be relocated to new facilities in Stevenage (UK).

Tayside Optical Technology is providing optical components design and coating solutions meeting clients specific requirements, including an extensive range of ultra low absorption CO₂ laser coatings. The company is also active in other types of coatings and filters for infra-red and visible systems. Tayside Optical Technology serves four major markets: night vision, lasers, telecom and visible applications, and acts as a subcontractor for all the V&S Scientific material. It has a total staff of 15.

Tayside is located near Dundee in the Scottish region. As such this acquisition is an opportunity for UM Electro-Optic Materials to be present in a recognised growth area for electro-optical applications.

The technologies and market positions of both companies, combined with the industrial expertise and marketing support that UM Electro-Optic Materials can provide, will allow both V&S and Tayside to accelerate their development and growth.

These acquisitions, which will be earnings accretive as from 2001 at operating level, reflect the strategy of the Advanced Materials business group to grow its business through downstream developments, both organically and by acquisitions.

Pictures of some materials produced by V&S Scientific are available on

the web site: www.unionminiere.com/umeom/umvs01ep.htm

Please visit also the following sites:

V&S Scientific : www.vs-scientific.co.uk

Tayside Optical Technology : www.totl.co.uk

Investor Relations: Mrs Isabelle MICHOTTE - Tel. +32 2 227 71 47 - isabelle.michotte@umicore.com

PROFILE

Union Minière (UM) is an international metals and materials group, which strives to obtain leadership positions in selected markets. Its activities are centred on 3 business groups: Advanced Materials, Copper & Precious Metals and Zinc. To ensure a rapid response to the market, each business group is divided into several business units and business lines.

The UM Group has industrial operations in Europe, North America, Asia and Africa and serves a global customer base through an international sales network with offices in more than 25 countries.

The underlying principles of UM's strategy across the various business groups are a commitment to technological innovation, operational excellence, recycling and environmental responsibility.

The Group generated a turnover of EUR 3.2 billion in 1999. UM currently employs some 8,000 people.