1. Restructuring of Alu Menziken Group to strengthen the Swiss unit

Alu Menziken Group has an American and a Swiss subsidiary. The Swiss Alu Menziken Extrusion AG operates the two divisions Industrial Components and Aerospace Europe. The US business unit Universal Alloy Corporation (UAC) exclusively engages in the development, production and distribution of aerospace-related activities for North and South American customers.

A few weeks ago, the Supervisory Board of Alu Menziken Holding AG unanimously decided to split up Alu Menziken Extrusion AG into the units Industrial Components and Aerospace Europe - on the one hand to shift the Industrial Components unit to a profitable environment, and on the other hand to place the Aerospace Europe unit under the strategic leadership of UAC Chief Executive John Ball, with the aim to drive the profitable business unit into an expansion phase.

Size of investments in the Swiss unit

In the course of the above mentioned realignment, the necessary investments, including the already announced and needed investments in the Swiss unit, were again assessed. The rough investment plan budgets investments of CHF 65-70 m, of which around CHF 18-27 m will be used for investments in the Aerospace Europe division. The lion’s share (approx. CHF 46 m) will be allocated to the Industrial Components division to put it in a sustainable and profitable position. As for the business year 2007, Industrial Components, the largest division of the Swiss unit within Alu Menziken Group, which generates 75 % of the turnover, will incur a loss.

The above mentioned investments in the Swiss unit are indispensable for the continuation of the Swiss unit and need to be made within the next 3-4 years, to achieve the customary profitability in this sector. The funds allocated to the Aerospace Europe division have to be seen in connection with the ongoing customer negotiations and their conclusion. The goal of the talks is to achieve a sustainable and significant rise in supplies to Europe.

Decision of the Supervisory Board of Alu Menziken Holding AG on the sale of UAC to Montana Group

In the face of the large upcoming investments, the impossibility to finance them from the cash flow of Alu Menziken Group and the intention of the majority owner to maintain the Swiss activities, the Supervisory Board of Alu Menziken Holding AG filed a motion to vote on the sale of UAC at a fair and reasonable price.

A majority of the Supervisory Board members approved the motion on November 6, 2007. UAC will be sold under the condition that they receive a positive tax ruling from the Swiss authorities and that the financing talks between a consortium of banks and Montana Group are concluded.

UAC’s purchase price of USD 90 m is based on the business appraisals carried out by three major international auditing firms. The price also defied a market comparison and was confirmed by a fairness opinion by Ernst & Young AG, Zurich, which was commissioned by the Supervisory Board of Alu Menziken Holding AG in September 2007.

The money generated from the sale of UAC will allow Alu Menziken Group to pay off existing debts and to compensate for the necessary investments. After the clearing of the debts the Swiss divisions will be in a net cash position.

Goals of the realignment

Without the above mentioned high investments it is impossible for Alu Menziken Extrusion AG to achieve profitability. Therefore, both the Supervisory Board and the majority owner are determined to achieve a sustained profitability for the division within 3-4 years with the planned investments and the newly appointed management team. The clear customer and market strategies of the Aerospace Europe division aim for a substantial increase in turnover while maintaining profitability.

2. Offer to the minority shareholders of Alu Menziken Holding AG

As announced in July 2007 during the majority takeover, Montana Group is planning to submit a purchase offer to the minority shareholders of Alu Menziken Holding AG – if possible within the current business year.

The fair value of Alu Menziken Holding AG (including UAC) determined in the fairness opinion of Ernst & Young AG, Zurich, amounts to CHF 300 per nominal share of a face value of CHF 10. Montana Group is willing to offer this price per share, which has been evaluated as fair and adequate, to the minority shareholders to purchase the 190,900 nominal shares which are not yet held by Montana Group.

The offer will be published immediately after the signing of the financing contracts, but is subject to the condition that no legal notifications or tax assessments which would impede an offer exist.

Montana Group aims at a majority of voting rights of more than 90 % . If this goal cannot be reached, Montana Group reserves the right to submit the offer anyway or to extend the deadline for the offer. The Supervisory Board of Alu Menziken Holding AG was informed about this goal, the amount of the purchase offer and the conditions considered. The board of Alu Menziken Holding AG will recommend the offer to the minority shareholders in due time.

3. New management of Alu Menziken Holding AG and Alu Menziken Extrusion AG

As from January 1, 2008, Mr. Gerald Romagna, an engineering graduate, will take over as Chief Financial Officer of Alu Menziken Holding AG from Mr. Thomas Staub. Mr. Staub will be in charge of the 2007 annual report of Alu Menziken Group and leave the group at the end of March 2008. Mr. Romagna held a leading position in financing and controlling at Voest Alpine Group from 1983 to 1993. Until 2007 he was the head of trading – from 2005 he was chief controller at AMAG rolling GmbH in Ranshofen (Austria). Mr. Romagna has also taken over the function as CFO of Alu Menziken Extrusion AG.

On March 1, 2008 at the latest Mr. Roland Gloor will take over the position of CEO at Alu Menziken Industrie Extrusion AG. Mr. Gloor has been in an executive position at Alcan Decin Extrusions s.r.o. and was production manager at Alu Menziken Extrusion AG from 1987 to 1997. Mr. Gloor will in addition to his tasks as CEO be responsible for the Industrial Components division.

Since October 1, 2007, Patrick Villiger has been heading the Aerospace Europe division as Chief Operating Officer. Apart from his position at Alu Menziken Extrusion AG, he reports to John Ball, who took over the global leadership of the aerospace activities as mentioned above.

The current CEO of Alu Menziken Extrusion AG, Daniel Anliker, will leave the company on March 31, 2008.