WME offers a full range of active extinguishing systems, including systems based on water mist technology, to the oil industry as well as other industries. The Company has currently a considerable order backlog and expects sales of NOK 40 million this year. Following the acquisition, WME will become a new business area within Simtronics. WME is based in Kristiansand, Norway and is in the process of establishing subsidiaries in China and Singapore.

Commenting on the acquisition, Simtronics' CEO Rune Martini said,"The acquisition of WME releases considerable synergies. The two companies' customer groups are largely the same and WME's technology and products are complementary to ours. The combined Company will benefit from significantly improved distribution power."

Simtronics has until now been a supplier of advanced fire and gas detectors. The Company said when it became listed on the Oslo Stock Exchange in January this year that it would expand its business model to become a total supplier of systems for fire and explosion safety. The acquisition of WME is the first step toward fulfilment of this strategy. The acquisition also provides Simtronics with broader engineering and safety project capabilities.

Simtronics acquires Water Mist Engineering for a price of up to NOK 25 million. NOK 15 million are paid in cash upon completion of the transaction. NOK 6 million are paid in Simtronics shares in 2010 while another NOK 0-4 million are also paid in Simtronics shares in 2010, subject to WME's growth and financial results over the next three years.

The acquisition is subject to due diligence and approvals by the Norwegian Competition Authority as well as Simtronics' Board of Directors.

Simtronics will present the acquisition in more detail at a presentation held Monday, 16 April 2007 at 10 am, Felix Conference Centre in Oslo.

Investor Presentation 16.04.07 (.pdf)

For further information, please contact:
Mr Rune Martini, CEO of Simtronics ASA,
telephone +47 4807 8080