Von Roll Holding AG

Au ZH, 2008-9-16

• Forward integration in power transmission and distribution equipment with a synergy potential of more than CHF 10 million
• Deal extends Von Roll’s value chain and know-how in one of the energy sector’s fastest-growing markets
• Broadening of Von Roll’s geographic reach, with strong growth potential in American, Asian and Middle Eastern markets

Au ZH, September 16th, 2008 – Von Roll, one of Switzerland's longest established industrial companies providing insulation products and services for the energy sector, has signed an agreement with Electra Ltd. to acquire 80% of Enerco Enterprises (former Elco Transformers). Enerco is a leading global manufacturer of solutions for power transmission and distribution.

“Enerco is a perfect fit for our portfolio due to its product offering, strong financial performance and well established market,” said Thomas Limberger, President and CEO of Von Roll. “The acquisition of Enerco is a first important milestone in our growth strategy. The new segment allows us to leverage excellent opportunities in the fast-growing energy market.”

Enerco has a strong base in Israel and abroad, including the US and Canada, with state-of-the-art manufacturing technologies and facilities. With Enerco products, Von Roll will be able to offer complete engineering & design, manufacturing and product testing solutions for mainly medium to large power transformers (20 MVA to 700 MVA), as well as distribution transformers and mobile substations.

The acquisition of Enerco is a logical step with long-term benefits for Von Roll and its shareholders because it broadens Von Roll’s value chain in strategically important and profitable areas in one of the fastest growing markets in the energy sector. Market growth in this sector is driven by strong demand for the replacement of aging infrastructure and addressing efficiency requirements in Western markets, as well as new infrastructure needs in emerging markets. The acquisition extends Von Roll’s competency in equipment manufacturing. As “Von Roll Elco Transformers” Enerco will become an integrated part of Von Roll’s portfolio.

Moreover, the acquisition of Enerco improves Von Roll’s position in North America and provides access to new markets in places such as the Middle East and Africa. After the integration, Enerco will be able to leverage Von Roll’s worldwide sales network and thus grow even faster.

“We are very pleased to keep Electra Ltd. as a minority shareholder at Enerco until the end of 2009. This will allow Von Roll to quickly establish a strong market position both from the technological and regional point of view,” said Thomas Limberger. “Von Roll is looking forward to joining forces with the current management team and employees of Enerco who will bring their values, commitment, experience and creativity to Von Roll and work together for a successful future.”

“We welcome the decision of Von Roll to acquire the majority of Enerco”, said Itamar Deutscher, CEO of Electra Ltd. “As the power transmission and distribution business is no longer a core business of our Holding, we fully support Von Roll and its efforts to successfully integrate Enerco’s business. Von Roll is ideally positioned to secure and accelerate Enerco’s growth.”

Enerco used to be part of the core business of Electra Ltd. and contributed considerably to the success and growth of the group. Since the strategic repositioning Electra Ltd. focusses on construction and infrastructure projects, maintenance and trading services, real estate development and real estate.

The deal is being structured under Israeli law and Von Roll does not expect any regulatory issues. The closing of the deal is expected within October of this year.

Further information regarding the transaction can be downloaded on www.vonroll.ch. Please refer questions to Sven Ohligs, press@vonroll.ch, Tel. +41 44 204 3031.

For detailed information about Enerco please refer to the website http://www.enerco.co.il

About Von Roll Holding AG:
As one of Switzerland's longest established industrial companies, Von Roll Holding AG focuses on products and systems for power generation. Von Roll is the global market leader in insulation products, systems and services and is represented at more than 30 locations in 18 countries with around 3,000 employees.

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