Press Release - Uster Technologies

Not for distribution in the USA, Australia, Canada or JapanPress ReleaseUster Technologies Ltd launches IPOon the SWX Swiss ExchangeUster, Switzerland – October 8, 2007 – Uster Technologies Ltd, a worldwide leading hightechnology instrumentation manufacturer for quality measurement products from fiber to fabric,publishes today the details of its planned initial public offering (IPO) on the SWX Swiss Exchange.The price range for registered shares being offered in the IPO will be CHF 45.00 to 57.00 pershare. The company intends to raise approx. CHF 106 million of gross proceeds (primary offering)and existing shareholders (including funds advised by Alpha Beteiligungsberatung & Co. KG) areselling shares worth between CHF 63 million and CHF 80 million (secondary offering). In addition,funds advised by Alpha Beteiligungsberatung & Co KG have granted the managers of the offeringan over-allotment option of up to 10% of the base offering size. The free float will amount tobetween approximately 51% and 54% excluding the exercise of the over-allotment option orbetween 56% and 60% if the over-allotment option is exercised in full. At the announced pricerange, Uster Technologies’ market capitalization would represent approximately CHF 311 – 366million.The offering consists of a public offering in Switzerland and a private placement to institutional investors incertain other jurisdictions. The members of the Board of Directors and the Management of UsterTechnologies Ltd have agreed to a lock-up period of 360 days, the funds advised by AlphaBeteiligungsberatung & Co. KG and the Company for a period of 180 days.Book building is expected to commence on October 8 and to be concluded on October 18, 12 noon CET,with the offer price expected to be published on October 19, the scheduled first day of trading on the mainsegment of the SWX Swiss Exchange.Leader in the textile quality managementSince its debut in textile electronics in 1944, Uster Technologies Ltd has provided inspection, verification,quality assurance and efficiency technologies that enable the optimal purchase, production and sale offibers, yarns and fabrics. Throughout the industry and by its customers and suppliers the Company isconsidered a leading provider of innovative and high performing textile quality testing and measurementsystems. Uster Technologies Ltd estimates that today more than 1.6 billion samples are analyzed by theGroup’s systems across the world each day.Uster Technologies Ltd’s strong market position is backed by its brand that represent a global standard andits efficient supply chain management which enables the Group to respond quickly to changes in marketdemands and industry trends, such as the recent shift of textile production away from Europe and NorthAmerica to lower cost labor markets primarily located in Asia. The use of the USTER ® Group's measurementstandards, products and services enables industry players to trust the supply chain regardless of the widedistance between the predominantly Western end-customers and the Asian production facilities.Dr Geoffrey Scott, CEO of Uster Technologies Ltd, comments: “We are proud and delighted to present UsterTechnologies Ltd as a new investment opportunity. In addition to targeting our core top-quality segment, werecently introduced products that specifically target the mid-quality segment, addressing the local, fastemergingChinese market. This initiative represents an expansion into a new area and presents importantopportunities for future growth.”1/3

Not for distribution in the USA, Australia, Canada or JapanUster Technologies with significant revenue growth in 2006 and first half-year 2007Top line growth for the financial year 2006 amounted to 14% based on strong demand for the Group’sproducts in Asia. Uster Technologies Ltd has seen a continuation of this trend in the first six months of 2007.The operational margin in 2006 has increased from 21% to 28% based on strong operating leverage, a levelconfirmed in the first half of 2007.January to June(unaudited)As of December 31In CHF Thousands 2007 2006 2006 2005Gross sales .................... 95,760 70,825 163,900 143,651EBITA ............................. 26,711 17,640 46,193 30,729EBITA margin .............. 27.9% 24.9% 28.2% 21.4%Employees (FTE) 519 487 490 468IPO data Uster Technologies LtdPrice rangePrimary offeringSecondary offeringBase offeringOver-allotment optionFree-floatListingTicker symbolISINIndicative timetableBookbuildingCHF 45.00 to 57.00 per shareCHF 106 million (1,859,649 – 2,355,556 shares)CHF 63 – 80 million (up to 1,397,502 shares)CHF 169 – 186 millionCHF 16.9 – 18.6 millionApprox. 51 – 54% (pre over-allotment option)Approx. 56 – 60% (post fully exercised over-allotment option)SWX Swiss Exchange, Main BoardUSTNCH0034331535October 8, to October 18, 2007, 12 noon CETPublication of offer price and first trading day Planned for October 19Settlement and closing Planned for October 24Uster Technologies LtdUster Technologies Ltd is a leading supplier of quality controlling systems for the textile industry. Thecompany provides testing and monitoring instruments, systems and services that allow optimization of qualitythrough each individual stage of textile production; from the raw textile fiber, such as cotton, wool or syntheticfilament yarns, to the final finished fabric. Uster Technologies Ltd provides benchmarks that are a basis forthe trading of textile products at assured levels of quality across global markets.The Group is headquartered in Uster, Switzerland and operates through a worldwide Market Organizationcomplemented by Technology Centres. It has sales and service subsidiaries in the major textile markets andTechnology Centres in Uster (Switzerland), in Knoxville (USA) and in Suzhou (China). In 2006, UsterTechnologies Ltd generated net sales of over CHF160 million, an operating profit of over CHF 45 million anda net result of CHF 30 million, with a workforce of approximately 490 employees.Uster Technologies Ltd was founded in 2003 following the acquisition of Zellweger Uster by the managementand funds advised by two private equity investment companies. In 2006, Uster Technologies Ltd wasacquired by its Management, headed by Dr Geoffrey Scott, CEO, who continued to lead the company, andfunds advised by Alpha Beteiligungsberatung & Co. KG.*****2/3

Not for distribution in the USA, Australia, Canada or JapanContactDr Geoffrey ScottBarbara Müller-JunkerChief Executive OfficerChief Financial OfficerUster Technologies LtdUster Technologies LtdWilstrasse 11 Wilstrasse 11CH-8610 Uster / SwitzerlandCH-8610 Uster / SwitzerlandPhone +41 43 366 36 00 Phone +41 43 366 36 06Fax +41 43 366 36 04 Fax +41 43 366 36 04e-mail investorrelations@uster.com e-mail investorrelations@uster.comDisclaimerTHIS PRESS RELEASE CONSTITUTES NEITHER AN OFFER TO SELL NOR A SOLICITATION TO BUY ANY SECURITIES AND ITDOES NOT CONSTITUTE AN OFFERING PROSPECTUS WITHIN THE MEANING OF ARTICLE 652a OF THE SWISS CODE OFOBLIGATIONS OR A LISTING PROSPECTUS WITHIN THE MEANING OF THE LISTING RULES OF SWX SWISS EXCHANGE.INVESTORS SHOULD TAKE THEIR INVESTMENT DECISION TO BUY OR SUBSCRIBE TO NEW SHARES SOLELY ON THE BASISOF THE PRELIMINARY LISTING AND OFFERING PROSPECTUS. THE OFFER OF SECURITIES OF USTER TECHNOLOGIES AGIS BEING MADE SOLELY BY MEANS, AND ON THE BASIS OF, THE PUBLISHED PROSPECTUS, WHICH IS AVAILABLE FREE OFCHARGE AT CREDIT SUISSE, (UETLIBERGSTRASSE 231, CH-8070 ZURICH, SWITZERLAND, FACSIMILE +41 (0)44 333 35 93).THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND MUST NOT BE DISTRIBUTED TO USPERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOTCONSTITUTE AN OFFER OR INVITATION TO PURCHASE ANY SECURITIES IN THE UNITED STATES OF AMERICA. THESECURITIES OF USTER TECHNOLOGIES LTD HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIESLAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OF AMERICA OR TO US PERSONSABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THEUNITED STATES SECURITIES LAWS. USTER TECHNOLOGIES LTD DOES NOT INTEND TO REGISTER ANY PART OF THEPROPOSED OFFERING IN THE UNITED STATES. INVESTORS ARE FURTHERMORE ADVISED TO CONSULT THEIR BANK ORFINANCIAL ADVISOR.This publication contains specific forward-looking statements, e.g., statements including terms like "believe", "assume", "expect" orsimilar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors whichmay result in a substantial divergence between the actual results, financial situation, development or performance of the Company andthose explicitly or implicitly presumed in these statements. Against the background of these uncertainties readers should not rely onforward-looking statements. The Company assumes no responsibility to update forward-looking statements or to adapt them to futureevents or developments.3/3