Author: Kevin J Handerhan : 08/06/12

I am pleased to announce that ELLWOOD Group, Inc. (EGI) has completed the acquisition of the assets of Leistritz Advanced Turbine Components (LATC) in Rural Hall, North Carolina. The assets were acquired from Leistritz AG, headquartered in Nuremberg, Germany by a newly formed subsidiary called ELLWOOD Advanced Components LLC. This new business unit will be called EAC.

LATC produces closed die forged turbine blades for steam and industrial gas turbines. They employ about 170 people. The principal assets include three screw presses (8000T, 12000T and 16000T) and a 50 meter-ton counterblow forging hammer. In addition, LATC has state of the art blade finish machining capability. This acquisition will enable EGI to add screw presses to our arsenal of closed die forging equipment and to increase large hammer forging capacity. We also intend to add additional forge furnaces, trim press capability and heat treatment equipment to enable EAC to more effectively produce other types of closed die forgings beyond turbine blades. These future investments will depend on our ability to obtain appropriate financial incentives from the state and local governments in the region and to acquire the land and buildings that are presently being leased by LATC from Siemens Energy.

This facility will be managed in combination with ETFH and ETFN. As such, Richard Allender will be responsible for the profit and loss of all three of our closed die forging plants: EAC, ETFH and ETFN. In order to organize our marketing presence as a complete one stop solution, we will operate and go to market as the ELLWOOD Closed Die Group (ECDG). Each plant will retain its individual profit and loss responsibility but be organized externally to its markets as one closed die solution.

Michael Grauel will join ELLWOOD as the VP and General Manager of EAC reporting to Richard Allender. Michael was previously the President of LATC. Please welcome Michael and the rest of the employees of EAC to EGI.

We are very pleased to add EAC to our group of companies!

Kevin Handerhan

Chief Operating Officer

Forgings and Castings

ELLWOOD Group, Inc.