Acquisition

Gooch & Housego PLC 08 May 2007 For immediate release 8 May 2007 Gooch & Housego PLC Acquisition of SIFAM Fibre Optics Ltd Gooch & Housego PLC, the specialist manufacturer of optical components and systems, today announces that it has acquired 100% of the issued share capital of SIFAM Fibre Optics Ltd ('SIFAM') for a consideration of £5.0 million. SIFAM is the global technology leader in fused fibre technology. It manufactures a broad range of passive and active fibre optic components, and integrated modules and systems incorporating fibre optics, sources, detectors and associated electronics. The principle markets addressed by SIFAM are telecommunications, biomedical, industrial and aerospace and defence. SIFAM is the market leader in high-reliability fused fibre products for submarine telecommunications applications. SIFAM Fibre Optics Ltd was founded in 2002 following a management buyout of JDS Uniphase UK Ltd. SIFAM occupies modern, well-equipped facilities in Torquay, Devon, where it employs 93 people engaged in research and development and low-volume manufacturing of specialised products and systems. Higher volume products, for example those for terrestrial telecommunications applications, are out-sourced to a manufacturing partner in the Czech Republic. For the 12 months ended 30th September 2006, SIFAM had audited revenues and profit before tax of £3.9 million and £0.22 million respectively. The consideration of £5.0 million was satisfied by a combination of cash and shares in Gooch & Housego PLC, with the management shareholders taking shares. All members of the management will continue with the business. We expect the acquisition to be earnings enhancing in the first year. Gareth Jones, Chief Executive of Gooch & Housego, commented: 'SIFAM has an experienced management team, a capable workforce and a world-class product range. The fit with Gooch & Housego in terms of products, technologies and markets is excellent. For Gooch & Housego, the addition of an in-house fibre optics capability will allow us to extend our product range and address new applications and markets. In SIFAM we have not just acquired a capability in this field; we immediately become a world leader in several key aspects of the technology. Looking forward, there is a high degree of convergence between the technologies and products that Gooch & Housego has identified in its roadmap, and those that SIFAM is active in. For example, the industrial and medical laser market is very important to Gooch & Housego, and fibre lasers is the fastest growing sector of this market. SIFAM is a key supplier to all of the world's leading fibre laser manufacturers, and I would expect further products to result from a programme of joint development with Gooch & Housego. Similarly, in the biomedical and life sciences arena, the activities of both businesses are highly complementary. We now have the ability to address a number of exciting new opportunities in the fields of microscopy and diagnostic instrumentation by combining the technologies and resources of Gooch & Housego and SIFAM.' This transaction is a substantial transaction under Rule 12 of the AIM Rules for Companies (the 'AIM Rules). This announcement is made in accordance with Rule 12 and Schedule 4 of the AIM Rules. Contacts: Gareth Jones, Chief Executive Officer 01460 52271 Tim Thompson / Susanna Gale, Buchanan 020 7466 5000 Communications Scott Richardson-Brown, Oriel Securities Ltd 020 7710 7600 About Gooch & Housego PLC Gooch & Housego is a manufacturer of acousto-optic and electro-optic devices, precision optical components, crystals, optical instruments and imaging systems. Based in Ilminster, UK, it has operations in the UK, USA and Germany. In several of its activities Gooch & Housego is considered a world leader. The Queen's Award for Enterprise: International Trade was conferred upon the UK business in 2006. About Sifam Fibre Optics Ltd In 1927, a French manufacturing company called SIFAM, the Societe Industielle pour la Fabrication d'Appareil de Mesure established an English distributor in London. The English company became a leading manufacturer of analogue meter products moving to Torquay in South West England during World War 2 and thriving throughout the 1950's, 60's and 70's. With the development of digital technology SIFAM needed new markets and branched into the development of fibre optics products in the 1980's. The first fibre optic product was sold in 1985 and further products were developed over the next decade. In the late 1990's SIFAM experienced a period of rapid growth, leading up to the acquisition of the fibre optics activities of the company by JDS Uniphase Corporation in 1999. This information is provided by RNS The company news service from the London Stock Exchange
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