Formica Corporation Announces Purchase by Fletcher Building Limited

CINCINNATI (May 22, 2007) -- Formica Corporation ("Formica") today announced that it is being acquired by Fletcher Building Limited ("Fletcher Building").

Fletcher Building, based in Auckland, New Zealand, is a publicly traded material and construction company with annual revenues of $4 billion (US). The company has five operating units: Laminates & Panels (principally involving Laminex, which currently owns the rights to and sells under the Formica® brand in Australia and New Zealand), Building Products, Steel, Infrastructure and Distribution.

The acquisition of Formica for $700 million (US) with additional deferred payments of up to $50 million (US) from private equity investors Cerberus Capital Management, L.P. and Oaktree Capital Management, LLC represents growth opportunities for Formica and for Fletcher Building. The seller will retain the South America operations and certain real estate in California.

"Our goal has been to establish an ownership structure that will allow us to build upon our success and continue to invest in and grow the business, and our people," said Frank Riddick, President and Chief Executive Officer of Formica. "Fletcher is ideally aligned with this objective due to its broad-based building material and construction business and experience in the laminate and decorative surface market. The combination of Formica and Fletcher Building's Laminex businesses will create the largest global manufacturer of decorative surfaces and high-pressure laminates in the world."

Formica, based in Cincinnati, Ohio, has more than 3,800 employees in 14 manufacturing and 33 distribution facilities spread across Asia, Europe and North America. Riddick said Formica's financial performance, product portfolio and employee base have been revitalized in recent years and the business outlook is promising.

"Formica is a recognized innovator in its industry, with an excellent track record of new product development and successful product introduction," said Fletcher Building Chief Executive Officer Jonathan Ling. "We are confident that this acquisition will allow us to establish a truly global laminates platform, providing new opportunities for us in Asia and creating synergies across our manufacturing, sales and distribution networks."

The transaction will be subject to regulatory approvals and is expected to close in early July.

Formica does not expect the new ownership to have a significant impact on day-to-day operations. In the near term, Formica will be structured as a business unit within the Fletcher Building Laminates & Panels division. Frank Riddick will remain as President and Chief Executive Officer of Formica and the management team will remain with the company.

Formica is a global surfacing industry innovator that designs, manufactures and distributes a full range of surfacing products for commercial and residential applications, including Formica® Brand Laminate, Formica® Solid Surfacing, Formica Granite®, Formica® Stone Natural Quartz Surfacing, Formica® Veneer Premium Wood Surfacing and Formica® DecoMetal. Formica's headquarters will remain in Cincinnati, with offices throughout North America, Europe and Asia.

Formica was represented in the transaction by Weil, Gotshal & Manges LLP and Goldman, Sachs & Co.

Further details on Formica Corporation and Fletcher Building Limited are available on their Web sites.