MTI Global Inc.

MTI Global Inc.

November 08, 2005 08:55 ET

MTI Global Inc. Purchases Majority Interest in French Producer of Medical Grade Silicone Products

MISSISSAUGA, ONTARIO--(CCNMatthews - Nov. 8, 2005) -

Closing scheduled for November 10th

MTI Global Inc. (TSX:MTI) today announced that the company has signed an agreement to purchase 51% of Sterne SARL of Cavaillon, France. Sterne SARL is a manufacturer of medical grade silicone products.

Under the agreement, MTI has agreed to purchase 51% of Sterne for the nominal amount of EUR 49,000 and to lend to Sterne the amount of EUR 300,000 to complete the upgrade of their current clean room capability to a new 1550 sq. ft facility. This new clean room is necessary for new contracts related to the production of medical devices. MTI has also agreed to a formula for the eventual purchase of the remaining 49% of Sterne with this option being open to MTI for the next five years.

"We are very pleased to bring Sterne into the MTI Group of Companies," said Bill Neill, MTI Global President and CEO. "We have worked with Sterne for some years as they have been selling many of the materials MTI produces. Now Sterne will fully represent MTI in France, where we currently have lower market share and see great opportunity. Our sales people worldwide will now be able to include Sterne's product capability in our presentations."

Celine Laget, Senior Partner at Sterne, expressed delight at the extension of ownership. "We are very pleased to rename our company MTI Sterne. This partnership will enable our growth in medical markets and those that require FDA approval as well as give us an opportunity to build a broader silicone business throughout France."

John Boots, MTI's CFO and Senior Vice President notes that the company has always seen medical grade and clean room production as a natural extension of its current range of processes. "This deal allows us a low cost entry into a very desirable marketplace. The company is located in an area of France that has built a reputation for innovation in clean room production. We can build our knowledge base without incurring the significant cost or going through a lengthy qualification process."

Sterne SARL was founded in May 1996 and today operates from a 28000 sq. ft. facility in Cavaillon, 45 minutes from Marseille. Revenues for 2005 are estimated at EUR 1.6 million and expected to rise to EUR 2.5 million in 2006 with the addition of new contracts. Sterne also produces platinum cured silicone in extruded or sheet form with FDA approval for the food industry. Sterne's clean room produces silicone tubing, invasive and other medical devices including oxygen masks and has patents on two introductory products currently going through clinical testing.

About the Company

MTI Global Inc., formerly Magnifoam Technology International Inc., designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories: Silicone, Aerospace and Fabricated Products. MTI's manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible, cellular materials. MTI also produces and distributes specialty silicone elastomer products. MTI's primary markets are aerospace and mass transit. Secondary markets include sporting goods, automotive, industrial, institutional, medical and electronics markets. MTI's head office and Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Richmond and Buchanan, Virginia, and Bremen, Germany. The Company also has sales operations in England and Sweden, and an engineering support centre in Brazil.

The foregoing press release contains forward-looking statements and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that could cause results or events to differ from current expectations include the impact of price and product competition, general industry and market conditions and growth rates and reliance on key customers. For additional information with respect to these and other factors, see the reports filed by MTI Global Inc. with the Ontario Securities Commission. MTI Global Inc. disclaims any intention or obligation to update or revise any forward-looking statements.

Contact Information

  • MTI Global Inc.
    John Boots
    Chief Financial Officer
    (905) 564-9700
    Fleishman-Hillard Canada
    Anne Lachance
    Investor Relations
    (416) 214-0701