Preferred Compounding acquires Associated Rubber Compounding

May, 2006

BARBERTON, OH: Preferred Rubber Compounding Corp. today announced the acquisition of Associated Rubber Company of Tallapoosa, Georgia. Preferred has operated two facilities at one location for a number of years. The acquisition now provides for multiple production facilities at the Associated Rubber Company plants located in Tallapoosa and Fruithurst Alabama and Huntingdon, Tennessee.

"This acquisition is good for both companies," said Tim Eburne, president of Preferred. "Through the combination, both customer sets benefit from significantly expanded geographic coverage, the expanded range of processing technologies and proprietary products."

The combined companies now possess an expanded process offering that includes: tangential (both 4-Wing ST and 2-Wing) and intermeshing style internal mixers, tilt-mixers, straining, pelletizing, calendering, slitting, Littleford blending, mixing mills, and off-line blending and stripping. Customers will further benefit from the combined laboratory facilities with small batch mixing capabilities and the additional technical staff to aid in compound development and customer service. "All of these added features will strengthen our speed-to-market initiative," says Eburne.

Further enhancing the benefits of the acquisition is the added exposure to more customers for the ProBlend operation. Preferred Rubber's existing customers will now enjoy access to ProBlend polymer-bound dispersions, wetted powders, cure packs, and small lot custom master batches. These products are available in bulk or pre-weighed packages.

"Associated's technology relationship with Vita Calender, and Associated's strategy for roll compounding and other niche markets, including high value FKM compounds, will enable Preferred Rubber to be the one-stop shop for many customers," according to Eburne.

"Both organizations are excited about this acquisition and are working diligently to ensure that customers of each company continue to receive product and service without interruption or incidence," added Eburne. "Toward this goal, rest assured that both companies have spent significant time developing plans that are now being implemented to ensure our combined group of customers benefit from our new capabilities."

Preferred and Associated supply proprietary and custom mixed rubber compounds, chemical blends and calendered sheet to molders, extruders, mixers and others in the non-tire rubber goods market. Primary industries served include automotive, construction, power generation and roll goods.