Gamma Holding acquires mattress fabrics producer in Mexico

Gamma Holding N.V. has reached agreement on the acquisition of the Telartex Group activities in Mexico as of 14 July 2005. This acquisition further strengthens the position of global market leader Sleep Care Fabrics in Central America. At this moment the business unit has production and service centres in Europe, the United States, Central and South America, Australia and China.

Telartex is the largest independent manufacturer of mattress fabrics in Mexico, with an annual turnover of approximately USD 12.5 million (2004). In total, the company has 190 employees. Its production facilities are located in the Mexico City area.

Through this acquisition, Sleep Care Fabrics will gain a leading position in the promising Central American market. Furthermore, the American market will be serviced from Mexico. The acquisition fits the strategy to reduce capacity in Western Europe. At this moment no specific announcements can be made regarding possible consequences for the workforce.

Gamma Holding has financed the acquisition from available credit facilities. The transactions will have a positive effect on earnings per share. Telartex is included in the consolidated figures as of 1 July 2005.

Helmond, 15 July 2005

Executive Board

Profile

Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. In 36 countries, 9,072 employees are active. Its headquarters are located in Helmond (The Netherlands) and its shares are listed on Euronext Amsterdam.

Gamma Holding comprises two sectors, Gamma Technologies and Gamma Comfort & Style. These are made up of seven business units specialising in belting, filtration, coatings and composites, sailcloth, mattress ticking, car fabrics and exotic fabrics. With these products the company is a leading global player in its selected niche markets.