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November 16, 2005

Wartsila to acquire Gerhardt Holding

Wartsila has signed an agreement to acquire the assets of New Orleans headquartered Gerhardt Holding Co., Inc. The family-owned company specializes in the servicing of control and automation equipment for gas and diesel engines and steam turbines.

The operations to be acquired have annual net sales totalling approximately $29 million and 128 employees. The purchase price is EUR 8.6 million (about $10 million).

Acquisition is part of Wartsila's growth strategy in the service sector.

Gerhardt Holding Co. Inc. offers control and automation equipment service for both marine and land-based installations. The company is strongly positioned regionally in the Gulf of Mexico and on the U.S. east and west coasts.

According to Wartsila's Tage Blomberg, Group Vice President, Service: "The acquired business will add automation and control products and expertise as well as gas engine service expertise to our service offering, which we can provide on a wide scale to our customers through Wartsila and Wartsila-owned Ciserv networks. Gerhardt is well established in the Gulf of Mexico region. We will get new markets in the marine sector, especially in the gas engine solutions and growing LNG markets and additionally also in the on-shore petrochemical and oil refinery industries."

Commenting on the pending transaction, Bruce Gerhardt, President of Gerhardt Holding Co Inc., stated: "We think our customers will benefit markedly from the broader offering and resources the Wartsila and Ciserv networks bring . For Gerhardt's automation and control service business and our employees, this acquisition will afford enhanced opportunities as part of Wartsila's total service offering and global network."