Justice Department Requires Divestiture in Sapa's Acquisition of Indalex

Divestiture of Aluminum Sheathing Business in North Carolina Will Preserve
Competition

WASHINGTON, July 30 /PRNewswire-USNewswire/ -- The Department of Justice
announced today that it has reached a settlement that will require Sapa
Holding AB and Indalex Holdings Finance Inc. to divest a North Carolina
aluminum sheathing facility in order to proceed with Sapa's proposed $150
million acquisition of Indalex. The Department said that the transaction, as
originally proposed, would substantially lessen competition for the
manufacture and sale of aluminum sheathing (coiled extruded aluminum tubing)
used in the manufacture of high frequency coaxial cable in the United States,
resulting in increased prices and reduced quality, service and innovation.

The Department said that the companies must divest either Sapa's Catawba, N.C.
aluminum sheathing manufacturing plant or Indalex's aluminum sheathing
facility at its Burlington, N.C., plant in order to proceed with the deal.

The Department's Antitrust Division filed a civil antitrust lawsuit today in
U.S. District Court in Washington, D.C., to block the proposed transaction.
At the same time, the Department filed a proposed settlement that, if approved
by the court, would resolve the lawsuit and the Department's competitive
concerns.

"The original proposed transaction threatened to deprive consumers of the
benefits of competition," said Christine A. Varney, Assistant Attorney General
in charge of the Department's Antitrust Division. "Without the divestiture
required by the Department, purchasers of aluminum sheathing in the United
States likely would have faced higher prices and reduced quality and
innovation."

According to the complaint, Sapa and Indalex are the only two manufacturers of
aluminum sheathing in the United States. Indalex is currently involved in
bankruptcy proceedings. Aluminum sheathing is used to make coaxial cables
that are purchased by cable television companies in the United States and
abroad for use in transmitting high frequency broadband signals to their
subscribers. Aluminum sheathing is made to exacting specifications to provide
protection for the components of the cables to prevent the loss of the
transmission signal to subscribers.

Under the proposed settlement, in the event the companies are unable to sell
either the Catawba, N.C. or Burlington, N.C. facility promptly to a viable
purchaser acceptable to the Department, they must sell Indalex's entire
Burlington, N.C. extruded aluminum plant, which produces fabricated aluminum
products, such as conduit and aluminum shapes, in addition to aluminum
sheathing.

Sapa is a Swedish corporation with its principal place of business in
Stockholm, Sweden. Sapa sells fabricated aluminum products throughout the
world, including in the United States, where it is the largest aluminum
extrusion fabricator. In 2008, its sales of the product were about $30.7
million. Sapa is owned by Orkla ASA, a Norwegian public limited company whose
offices are located in Skoyen, Oslo in Norway. Orkla is a large, diversified
international company with operations throughout the world.

Indalex is a Delaware corporation with its principal place of business in
Lincolnshire, Ill. Indalex sells fabricated aluminum products in Canada and
the United States. Indalex is the second largest aluminum extrusion
fabricator in the United States. In 2008, its sales of the product were about
$12 million.

As required by the Tunney Act, the proposed settlement, along with a
competitive impact statement, will be published in the Federal Register. Any
person may submit written comments concerning the proposed settlement during a
60-day comment period to Maribeth Petrizzi, 450 Fifth Street N.W., Suite 8700,
Washington, D.C. 20530. At the conclusion of the 60-day comment period, the
court may enter the final judgment upon a finding that it serves the public
interest.

SOURCE U.S. Department of Justice

U.S. Department of Justice Office of Public Affairs, +1-202-514-2007, TDD,
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