Gamma acquisition in protective armour

Gamma Holding N.V., through its German subsidiary Verseidag Indutex GmbH, has reached agreement on the purchase of Burgmann Protection Group (BPG) from its current owners, of which Burgmann Dichtungswerke GmbH & Co. KG, Wolfratshausen/Germany, which is internationally active in the field of industrial sealings and expansion joints, is the majority shareholder.

Burgmann Protection Group, consisting of two companies located in Sittensen, Germany, and Helsinki, Finland, specialises in the design and manufacture of such protective armour as bulletproof/stab resistant clothing and ballistic protection solutions for land, air and sea transportation (armoured vehicles, helicopters, planes and naval vessels). BPG is supplying its protection systems, which are based on engineered fabrics and composites including the usage of ceramics and steel, throughout Europe to the police, military and peacekeeping forces as well as to international humanitarian organisations and civil users. The two companies currently have combined sales of over 10 million Euro. They employ 40 people.

Verseidag Indutex, Krefeld/Germany, through its "Ultrax"- division, is active itself in the field of protective armour by manufacturing base materials and components used in protective garment and hard armour systems. BPG ideally complements Indutex' activities through further forward integration and a focused systems approach to the growing speciality market of protective solutions.

The planned acquisition of Burgmann Protection Group underscores once again Gamma Holding's strategy aimed at the strengthening and expansion of the Gamma Technologies sector. The purchase, which is still subject to regulatory approval, would be financed from available credit facilities. The transaction would have a positive effect on earnings per share from 2004.

Board of Managing Directors, Gamma Holding N.V.

Helmond, 11. August 2003