MTI Global buys control of Sterne, silicone goods maker in France

Mississauga, Ontario -- MTI Global Inc.has announced that it has agreed to purchase 51% of Sterne SARL of Cavaillon, France. Sterne SARL is a manufacturer of medical grade silicone products. The company will be re-named MTI Sterne

Under the agreement, MTI has agreed to purchase 51% of Sterne for the nominal sum of EUR 49,000 and to lend to Sterne the amount of EUR 300,000 to complete the upgrade of their current clean room capability to a new 1550 sq. ft (140 sq. m) facility. This new clean room is necessary for new contracts related to the production of medical devices. MTI has also agreed to a formula for the eventual purchase of the remaining 49% of Sterne with this option being open to MTI for the next five years.

Celine Laget, Senior Partner at Sterne, expressed delight at the extension of ownership. "This partnership will enable our growth in medical markets and those that require FDA approval as well as give us an opportunity to build a broader silicone business throughout France."

John Boots, MTI's CFO and Senior Vice President notes that the company has always seen medical grade and clean room production as a natural extension of its current range of processes. "This deal allows us a low cost entry into a very desirable marketplace. The company is located in an area of France that has built a reputation for innovation in clean room production. We can build our knowledge base without incurring the significant cost or going through a lengthy qualification process."

Sterne SARL was founded in May 1996 and today operates from a 28000 sq. ft. (2500 sq. m) facility in Cavaillon, 45 minutes from Marseille. Revenues for 2005 are estimated at EUR 1.6 million and expected to rise to EUR 2.5 million in 2006 with the addition of new contracts. Sterne also produces platinum cured silicone in extruded or sheet form with FDA approval for the food industry. Sterne's clean room produces silicone tubing, invasive and other medical devices including oxygen masks and has patents on two introductory products currently going through clinical testing.