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31 October 2006   

STAR Capital Partners announces sale of its investment in recycling business to Befesa for €330 million.

STAR Capital Partners (“STAR”) announces the sale of BUS Group, a leading European recycling company to Befesa Medio Ambiente SA for an enterprise value of €330 million. The sale is the third realisation from its STAR 1 Fund which focuses mainly on investing in and developing capital intensive and asset based investment opportunities. The sale is conditional upon approval by the German competition authorities.

BUS Group (the "Company") is the leading European recycler of metal containing dust produced by the European EAF Steel Industry. The company provides an essential service to recycle metal containing wastes produced during the steel making process. BUS recovers the metals (mainly zinc and nickel) which are either returned to steel producers for re-use or sent to smelters for re-processing into high grade base metal. The Company operates from five recycling plants in Germany, France and Sweden. .

STAR acquired BUS in January 2005, and has since invested in significant capacity enhancements at its plants in Sweden and France.

Commenting on the realisation:

Stephen Wright, Managing Director of STAR Capital said:

“BUS is a good example of STAR’s strategy of investing in asset-based businesses with low downside risk and growth potential. The business has significantly outperformed our expectations and has been a very successful investment for us. We wish all those at the Company well under its new ownership.”

Oliver Jäger, Chief Executive Officer of BUS, added:

"Having consolidated its position over the last couple of years and initiated several significant expansion projects, the company is ideally placed for the next stage of its development. This is a compliment to all employees of the company. STAR has been a valuable and highly supportive partner during our time under its ownership. We look forward to delivering similar success to Befesa."

Tony Mallin, CEO of STAR Capital, added

“This is another example that our differentiated investment strategy works.”


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