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Unaxis builds additional in-house coating centers and opens up a new field of application for its innovative technologies

Pfäffikon SZ, June 29, 2006 − Unaxis Coating Services has opened up a new field of application for its innovative diamond-like carbon (DLC) coatings in the highperformance engine component segment. A few days ago the company succeeded in winning the biggest-ever order ever awarded under the North American Free Trade Agreement (NAFTA) in the diesel sector. Unaxis Coating Services also concluded new contracts for coating piston pins for the leading automotive components suppliers in this field – contracts which will bring in well over ten million Swiss francs' worth of extra business per year. A new in-house coating center will be built in Brazil to supply this major order. It will feature the latest generation of high-production coating systems, thus extending the company's global leadership in the field of coatings for mass-produced high-performance engine components to a new area of application.

Further proof that Unaxis Coating Service's strategy of building in-house coating centers is being widely accepted by the market may be seen from the signing of yet another contract to set up one of these centers: Unaxis concluded the deal with a US tool manufacturer last week.

"These two orders are a ringing endorsement of our in-house coating center strategy and of the way it is being convincingly accepted on the global market. Coating Services is currently growing over 10% faster than the market average, thus reinforcing its unrivalled global position," said Thomas Limberger, CEO of Unaxis.

"The substantial economic advantages – both for our clients and for Unaxis – provided by the in-house coating center strategy will ensure our earnings strength over the long term. This strategy means that we are right on course to meet our financial targets for the year 2006," added Rainer Mück, CFO of Unaxis.

For further information, please contact:

Sara Vermeulen-Anastasi

Sara Vermeulen-Anastasi

Head of Group Communications

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