Perstorp sells YLA Inc to TenCate Advanced Composites

Benicia, California, January 23, 2008 – Leading niche specialty chemicals company Perstorp today announces that it has entered into an agreement to sell YLA Inc and its subsidiary CCS Composites LLC (together "YLA"), to TenCate Advanced Composites USA Inc ("TenCate"). The divestment is in line with Perstorp¹s strategy to focus on and expand its core specialty chemicals activities.

"The sale of YLA to TenCate has enabled Perstorp to realise value for the business and demonstrates Perstorp¹s strong track record of creating value in its individual business activities. The sale is also a natural step in our strategy of focusing on our core activity, specialty chemicals. The transaction provides YLA and its employees with an opportunity to develop within a broader based advanced composites manufacturer", comments Perstorp President and CEO Bo Dankis. According to Jorg Huber, President & CEO of TenCate Advanced Composites USA, "The acquisition of YLA/CCS strengthens TenCate¹s growing market position within the aerospace market and further establishes TenCate as a world leader in advanced composite materials. We see strong synergies between TenCate and YLA/CCS, based on our joint product, market (qualifications) and technological capabilities and feel this acquisition will positively benefit TenCate¹s vision for excellence in composite materials".

YLA is involved in the development and manufacture of lightweight high performance advanced thermoset composites together with the design and fabrication of component parts using advanced composite materials. The business is based in Benicia, Solano County, California, USA, has a turnover of approximately US $ 24million and employs 65 people.

The sale is conditional upon US Government approval. Millington Advisory Partners acted as exclusive financial advisor to Perstorp in relation to the transaction.

For further information please contact:
Claes Gard, Chief Financial Officer
Phone: +46 (0) 435 378 87
e-mail: claes.gard@perstorp.com

ABOUT YLA, INC.
YLA, Inc. is a recognized leader in development and manufacture of innovative, high performance composite materials for extreme temperature and environmental exposure. The world’s largest manufacturers of aerospace, satellite, aircraft, naval/marine structures and other major industries rely on YLA to develop and manufacture their precise advanced composite formulations. CCS Composites division of YLA, Inc. provides compression molding expertise for custom and production molding of high performance carbon fiber and glass reinforced thermosets. YLA works seamlessly with CCS to apply innovative chemistry and process technologies, offering customers optimal solutions for the most complex application challenges. From concept to finished component, from resin to post processing, YLA and CCS provide a complete solution. The companies are located adjacent to each other in Benicia, California. Learn more about YLA & CCS by calling the company at (707) 747-2750, or visit www.ylainc.com.