Alloy Polymers Inc., Richmond, VA and Kunststoffwerk Voerde, Ennepetal, Germany announce the formation of a world-wide Global Compounders Alliance.

Richmond, Va., June 23, 2003

Alloy Polymers Inc. of Richmond, VA and Kunststoffwerk Voerde of Ennepetal, Germany have announced the formation of a world - wide Global Compounders Alliance - an alliance of independent Plastic Compounders in all major areas of the world. This alliance is founded to provide members' customers with a global supply platform, with standardized world class technologies, logistics services, expertise and high flexibility at competitive costs for Toll Compounding of Specialty Materials, in addition to providing "Service Provider Services" for selected global resin companies. The Global Alliance will have members for each of the following merchant areas:

NAFTA
Europe
South East Asia
Japan/Korea

The Global Compounders Alliance has outlined its mission as follows:

Providing technical service and technical assistance amongst the members,
Improving the quality level of each member company by assisting in achieving high level, internationally recognized quality certifications,
By supporting state of the art Compounding capabilities and Toll Compounding Services in each market segment,
By offering scale up and other test facilities and services for its customer base in each market section,
By establishing a globally recognized representation in the major supplier and merchant markets.

The benefits to alliance members are:

Using the existing business contacts & experiences of each partner in their respective region to help develop additional business contacts for their partners in other regions.
Exchange of experiences, as well as technical support for developing business relations, with due respect & regard provided for their own secrecy obligations with their respective Customers.
Ability to benchmark "Best Practices" with each other thereby raising quality and service standards for all. Alliance members will be mandated to have these benchmarking meetings at least once a year.
To support their Customers / Partners by offering standardized compounding technology and equipment, wherever possible.
To share with each other, wherever possible, the "Service Provider" solutions provided to support its Customers / Partners.
The sharing of information as mentioned above must to be in line with secrecy obligations that each partner of the alliance has signed with its respective customers.
Achieve added sales and income through the alliance.

The benefits of the Alliance to its Global Customers and Prospective Partners are:

Provide globally compounding services with consistent, seamless quality and advanced manufacturing capabilities for engineering plastics and Specialty Compounds, acting as a Contract Manufacturer / Toll Compounder in each of the regions mentioned above.
To provide its Customers/ Partners - typically the Global Resin Companies - an ability to operate with established Service Providers, who have standardized compounding technology and marketing philosophy in any global market.
All service providers, by design, will be small to medium-sized companies. They will (must) have a strong mission to support their Customers/ Partners by maintaining keen focus on quick response and scheduling flexibility so that its customers can "Maximize their Business by Design".
All of the alliance members, by organizational design and practice, will offer complete transparency and integrity to ensure that there are no conflicts of interests at any level & in any of the regions.
Alliance members will ensure that they do not finalize any "Service Provider" agreements with any competing License Providers, without unanimous membership agreement amongst the Alliance Members
The Alliance Members will further cooperate to support each other on offering additional services to their respective Customers/ Partners as follows:

Standardized Color Matching Capability and support for each member of the Alliance.
Each member will conduct a "Round Robin Testing" of their respective laboratories with each other to ensure standardized testing procedures and capabilities.
Tolling services throughout the globe.
Use of "available" compounding capacities at all members' facilities during a ramp up or trial phase of volume production for their respective customers, at "special" pricing to each member.

All members of the alliance will have committed themselves to guarantee that there will be no global transfer of regional customers' intellectual property.

What this Global Compounders Alliance is NOT?

Alliance members must be Independent Companies with no financial involvement in each otherÕs business.
The Alliance Members must not deal in proprietary product offerings.
The Alliance Members must not have a "Commodity" orientation and will have a clearly defined focus on specialty compounding.
The Alliance Members must not be the source of technology transfer of their respective customersÕ information to each other or to a third party.

The founding members of this Global Compounders Alliance are:

Alloy Polymers Inc is a Specialty Compounder of Engineering Plastics and Specialty Compounds located in Richmond, VA. Their annual capacity is in excess of 200 million pounds with the compounding plants located in Richmond, VA and Gahanna, OH. Alloy's focus has always been "Services" and continues to be in the offering of Compounding services for specialty products, with no proprietary products. For additional information, please visit their web site at www.alloypolymers.com.

Kunststoffwerk Voerde is a leading Specialty Compounder of Engineering Plastics located in Ennepetal, Germany. It uses a variety of microcomputer controlled twin screw and single screw extruders. Many of its active relationships with its Customers/Partners have been in existence for a very long time. For additional information, please visit their web site at www.kw-voerde.de.

Visit the Global Compounders Alliance

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