Wärtsilä to acquire assets of US service company for diesel and gas engine control and automation equipment

Wärtsilä Corporation, Stock exchange release 16 November 2005 at 14:00 UTC+2

Wärtsilä has signed an agreement to acquire the assets of Gerhardt Holding Co., Inc. The company specializes in the servicing of control and automation equipment for gas and diesel engines and steam turbines. The operations to be acquired have annual net sales totalling approximately EUR 24.5 million and 128 employees. The purchase price is EUR 8.6 million. Acquisition is part of Wärtsilä´s growth strategy in Service.

The family-owned company is headquartered New Orleans, Louisiana, USA. Gerhardt Holding Co. Inc. offers control and automation equipment service for both marine and land-based installations. The company is strongly positioned regionally in the Gulf of Mexico and on the east and west coasts of the USA.

According to Mr Tage Blomberg, Group Vice President, Service: “The acquired business will add automation and control products and expertise as well as gas engine service expertise to our service offering, which we can provide on a wide scale to our customers through Wärtsilä and Wärtsilä-owned Ciserv networks. Gerhardt is well established in the Gulf of Mexico region. We will get new markets in the marine sector, especially in the gas engine solutions and growing LNG markets and additionally also in the on-shore petrochemical and oil refinery industries.”

Commenting on the pending transaction, Mr Bruce Gerhardt, President of Gerhardt Holding Co Inc., stated: “We think our customers will benefit markedly from the broader offering and resources the Wärtsilä and Ciserv networks bring . For Gerhardt’s automation and control service business and our employees, this acquisition will afford enhanced opportunities as part of Wärtsilä´s total service offering and global network.”

The deal is expected to close in early December 2005.

For further information, please call Ms Eeva Kainulainen, VP, Corporate Communications, Wärtsilä, tel. +358 10 709 5235

or Mr Tage Blomberg, Group Vice President, Service, Wärtsilä, tel +358 10 709 2425.