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Owens Corning and Saint-Gobain Create OCV Reinforcements

26 February 2007

Owens Corning and Saint-Gobain representatives have signed a joint-venture agreement to merge Owens Corning's Reinforcements Business and Saint-Gobain's Reinforcements and Composites Business (a part of the entity known as Vetrotex) into a new company that will be named OCV Reinforcements.

In July last year, Owens Corning and Saint-Gobain announced that they were in discussions to merge their respective reinforcements and composites businesses, thereby creating a global company in reinforcements and composite fabrics products, with worldwide revenues of approximately $1.8 billion (euro 1.5 billion) and 10,000 employees.

The agreement signed on Feb. 20, 2007 contemplates that the joint venture will be owned 60 percent by Owens Corning and 40 percent by Saint-Gobain. After a minimum of four years, Saint-Gobain will have the option to sell its 40 percent stake to Owens Corning, and Owens Corning will have the option to buy Saint-Gobain's stake in the joint venture.

Owens Corning and Saint-Gobain say that joint venture will present significant opportunities for synergies. These are expected to come primarily from scale benefits in purchasing and procurement; operational and technological plant improvements; improved distribution costs; reduced administrative costs; and asset management optimization.

The transaction, which has been approved by the Board of Directors of both parent companies, is expected to close in mid-2007 and is subject to customary closing conditions and regulatory and antitrust approvals.






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