PPG Strategically Acquires Ameron and Expands Protective Coating Market

PPG Industries (NYSE:PPG) has reached agreement to acquire the Performance Coatings and Finishes business of Ameron International Corporation, Pasadena, Calif., (NYSE:AMN). Completion of the acquisition is subject to customary closing conditions, including receipt of required regulatory approvals, which are expected within 30 to 45 days.

Ameron's Performance Coatings and Finishes business employs approximately 700 people and had sales of US$210 million in 2005. The purchase price is US$115 million plus working capital adjustment. The company operates manufacturing sites in the United States, Europe, Australia and New Zealand, in addition to warehouses and offices around the world, some of which would remain with Ameron after the sale. The agreement also includes Ameron's 40-percent ownership in Oasis-Ameron, Ltd., located in Saudi Arabia, subject to the majority shareholders' approval. The acquisition expands PPG's protective coatings business into Europe and Australia, and it will enable the company to participate in the marine coatings market.

In addition, PPG has acquired the remaining 50-percent share of Dongju Industrial Co., Ltd., from its partners led by Dongju chairman Yeong Kil Sohn. PPG has owned 50 percent of Dongju since 1985 and has accounted for this investment under the equity method of accounting. Dongju serves the automotive original equipment manufacture (OEM), refinish, industrial and packaging coatings segments in South Korea. Dongju has manufacturing locations in Chon Ahn and Busan, South Korea. Terms for the Dongju acquisition were not disclosed.

PPG estimates that the company will increase its reported coatings revenues by approximately US$400 million, or 7 percent, on an annual basis as a result of the two acquisitions.

"These acquisitions demonstrate our strategy to focus on coatings and expand into new markets and emerging regions," said Chuck Bunch, chairman and chief executive office of PPG.

"They complement our existing coatings businesses and give us a platform from which to accelerate our growth. With Ameron's capabilities, technology and brand names, we' ll now have a global presence in protective coatings and will be able to penetrate the marine coatings market. By acquiring the remaining interest in Dongju, we will be able to strengthen our presence in the Asian coatings market and substantially improve our supply chain efficiencies in the region."

PPG's protective and marine coatings business will manufacture and supply protective coatings for a wide variety of uses, including chemical plants, nuclear power plants, oil platforms, ships, barges, rail cars, bridges and stadiums. Mr. Tom Mauck has been named to be the general manager of protective and marine coatings, he will report to Rich Alexander, senior vice president, coatings.

About PPG：

Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company employs more than 30,000 people and has 125 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2006 were $11 billion. PPG shares are traded on the New York and Philadelphia stock exchanges (symbol: PPG). For more information, visit www.ppg.com。

–060719release–