ARX acquires Lanex, Singing Rock and successfully exits Donit Tesnit

Lanex / Singing Rock Acquisition:

On September 26, 2008, Arx completed the acquisition of Lanex a.s. and Singing Rock s.r.o.

Lanex (www.lanex.cz) is a leading Central European producer of technical textile ropes and flexible packaging. The company’s strategy is increasingly focused on technologically advanced segments of the rope industry.

Singing Rock (www.singingrock.com) is a world-renowned player in the personal fall protection and climbing equipment market.

ARX and the Lanex and Singing Rock management teams intend to capitalize on the complementary strengths of each business with the aim of building a leading global player in the rope and climbing equipment market. The combined Lanex / Singing Rock business is on track to generate € 42 M in 2008 sales. Both Lanex and Singing Rock are headquartered in the Czech Republic.

ČSOB and UniCredit banks provided acquisition financing for the transaction.

Donit Tesnit Exit:

ARX is also pleased to announce the successful exit from Donit Tesnit doo, which was completed on September 1, 2008. ARX has exited its investment in Donit Tesnit doo via a sale of 100% of the company to an affiliate of Mohar Satler Investments. ARX generated a return of 3.0 times cash invested and an IRR of 58% on its 2006 investment in the company.