Ripplewood acquires the Power Systems Division of Alcatel

Dear customer,

Today, the private equity firm Ripplewood has finalized its acquisition of the Power Systems Division from Alcatel. The activities are comprised of the AEG SVS Power Supply Systems, Alcatel Converters, Harmer & Simmons and Saft Power Systems business lines.

With approximately 1300 people in 16 countries and 230 million euros of sales in 2004, the group offers one of the widest range of services, systems and products (power systems, uninterruptible power supplies, power controllers, converters?) to diverse end-markets, such as transportation, energy and water, industries and telecommunications.

Ripplewood is a global private equity firm that manages approximately $4 billion of private equity commitments, focusing primarily on investments in the U.S., Europe and Japan. Since its foundation in 1995, Ripplewood has invested in 20 platform companies in multiple industries, including automotive, consumer electronics, direct marketing, financial services, consumer products, entertainment, specialty chemicals, and telecom services.

The company will be led by Bruce Brock, former president and COO of Lucent Power Systems.

Our group will continue its strong focus on customer needs while driving the business strategically as a market leader in high reliability power equipment and service.

The a new identity will be a strategic and central platform for growth in the industry. Its new financial structure will allow us to intensify our investments in leading edge solutions, constantly improving our service levels to grow the business where we are already established while simultaneously developing new markets and opportunities.

You can be assured that the new owner, Ripplewood Holdings, as well as the previous shareholder Alcatel have taken all necessary steps allowing our business to perform successfully during this transition period.

We look forward to continue serving you with superior products and services.

Bruce Brock Ron Clements