Stonebridge Associates Advises Altana Chemie AG On Acquisition of Kelstar International, Inc.

June 5, 2006 - Stonebridge Associates LLC announced today that it acted as the buy-side advisor to Altana Chemie AG, a specialty coatings and sealants manufacturer, in its acquisition of Kelstar International, Inc.

Client Background

ALTANA Chemie AG, the chemicals division of ALTANA AG (NYSE: AAA; FSE: ALT), is a $1.4 billion German manufacturer of specialty pigments, paint additives, packaging coatings and wire insulation. ALTANA Chemie's coatings and sealants division is the world's leading provider of can sealants and Europe's leading provider of overprint varnishes for packaging and paper. Applications include coatings for flexible plastic food packaging, glossy magazine print and paperboard.

Transaction Rationale

Following a strategic review, ALTANA Chemie decided to extend its overprint varnish business to the North American market through acquisition. Although ALTANA Chemie was experienced in cross-boarder acquisitions and divestitures, it retained Stonebridge Associates and Ermgassen & Co. to conduct an acquisition search and manage the negotiation and due diligence process. Ermgassen & Co. is a London-based boutique investment bank active in the German market with whom Stonebridge has partnered on numerous cross-border engagements.

Stonebridge Role

Relying on industry contacts, proprietary databases and public information sources, Stonebridge identified and contacted an extensive list of potential targets that met ALTANA Chemie's acquisition criteria. After obtaining financial information from a number of potential targets, ALTANA Chemie ultimately chose to engage in preemptive discussions with Kelstar International, Inc., a rapidly growing $48.5 million manufacturer of aqueous and UV-curable overprint varnishes. Stonebridge advised on the transaction structure, led the negotiations with Kelstar's principals and advisors, and assisted the due diligence investigation. ALTANA Chemie ultimately acquired Kelstar in a tax-favorable asset transaction.

About Stonebridge Associates, LLC

Stonebridge Associates, LLC is a FINRA-registered investment banking firm that provides creative solutions to the corporate finance needs of middle market companies. Stonebridge Associates offers an extensive and diverse base of investment banking experience in assisting middle market and emerging growth companies in mergers and acquisitions, private placements of debt and equity securities, fairness opinions, and other strategic and financial advisory assignments. Stonebridge Associates is focused on providing its clients with the highest level of professional service in achieving their desired corporate, financial, and strategic goals. The firm’s division, Stonebridge Technology Associates, specializes in raising equity capital and providing merger and acquisition advisory services to software, hardware, Internet, healthcare, and other technology product and service companies. To learn more about Stonebridge, please visit our website at www.stonebr.com.