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Kinetics, Leader in Critical Process Infrastructure, Completes Buyout from Vivendi

SANTA CLARA, Calif., August 31, 2000 - Kinetics Group, Inc., the global leader in critical process infrastructure to the semiconductor, pharmaceutical and biotechnology industries, today announced the closing of the investor and management-led purchase of Kinetics. DB Capital Partners, a primary private equity investment arm of Deutsche Bank AG, and Kinetics management led the purchase from US Filter, the subsidiary of French multinational Vivendi. DB Capital Partners and Kinetics management partnered with Behrman Capital on this investment, given the firm's extensive technology and contract manufacturing investment experience. The approximately $550 million purchase of Kinetics features $275 million of common equity, other equity-linked instruments totaling $120 million, and a $150 million term loan as part of a total $260 million senior credit facility.

"At this time of rapid industry growth and accelerating customer requirements, Kinetics will be able to further focus on being the first and best provider for our customer's outsource manufacturing and critical process infrastructure needs," said David Shimmon, President and CEO of Kinetics. "This buyout provides an outstanding opportunity for our employees to participate in the success of the Company; which is essential to Kinetics' ability to deliver quality products and services, expand customer relationships, and provide value in the dynamic industries we serve."

Prior to Kinetics' acquisition by USFilter in January 1998, DB Capital was the primary institutional investor in the company. "Kinetics' global leadership in critical process infrastructure solutions is founded on unrivaled product, service, and geographic breadth," said Jeffrey L. Ott, Managing Director of DB Capital Partners, Inc. "We have enjoyed tremendous success in the past with this management team and are very excited about the opportunity to partner again. As a well capitalized, independent entity, Kinetics is now optimally positioned to leverage this platform and extend its value proposition to customers," he said.

Behrman Capital, a private equity firm founded in 1992 with extensive information technology, telecommunications services and B2B outsourcing holdings, joined DB Capital Partners and Kinetics management as investment partners in the purchase. Behrman Capital's $75 million commitment is the first buyout from its newest private equity fund, Behrman Capital III L.P. "Kinetics has developed an unmatched footing as the world leader in its target markets, and we are excited to join with management as they pursue the next stage of growth," said Darryl G. Behrman, a managing partner and founder of Behrman Capital. "With its ambitious strategy and strong growth prospects, Kinetics is an excellent addition to our portfolio of information technology and B2B outsourcing services companies."

In a series of strategic acquisitions and alliances, Kinetics has become the source for complete turnkey process solutions. From 1996 to 1999, Kinetics' revenues soared from $278 million to $660 million. In FY2000 revenue is expected to exceed $1 billion, as Kinetics expands outsource manufacturing and other product and service operations to meet the growing worldwide semiconductor market, fueled by demand for chips for wireless communications and the Internet. For semiconductor tool OEMs, Kinetics provides outsource design and manufacturing of integrated fluid delivery systems for the precise flow control of gases and chemicals, among other related manufactured products.

For the biopharmaceutical industry, Kinetics offers a wide range of validated manufacturing processes and support equipment ÿ all with the speed-to-market advantage of modular manufacturing. Kinetics' industry-leading team of process technology and program management specialists provides guaranteed turnkey design/build solutions.

Today, Kinetics is the world's largest provider of critical process infrastructure, uniquely positioned to meet its customers' needs to integrate new process manufacturing technologies and expand capacity in their facilities. The new Kinetics is an agile, global company committed to industry leadership, and to earning customer loyalty by delivering innovative solutions through exceptional teamwork.

About Kinetics

Kinetics, founded in Santa Clara in 1973, evolved with Silicon Valley and the expansion of the semiconductor and biopharmaceutical industries to become a diversified supplier of high-tech products and services. In a series of strategic acquisitions and alliances, Kinetics expanded its geographical reach and extended the breadth of its products and services.

Kinetics' acquisitions added a wide array of leading-edge mass flow control technologies, solutions for blending and distribution of CMP slurry and chemicals, and contract manufacturing capabilities to the company. Acquisitions have expanded the global reach of fabrication and installation. Kinetics' integrated range of solutions for semiconductor manufacturing plants includes process system manufacturing and installation of the complete gas, chemical and water infrastructure, including hook-up of the wafer fabrication tools.

For the biopharm industry, Kinetics' acquisitions added solutions for process system and capital equipment manufacturing for a wide range of validated manufacturing processes and support utilities. Kinetics' provides turnkey solutions for buffer and media preparation, cell culture, protein filtration, freeze-drying, and transport and airborne containment of sterile powders.

The company designs, manufactures and facilitates chemical, slurry, gas and water process utility systems that are critical to the semiconductor, biotechnology, pharmaceutical, and other regulated industries from over 48 locations worldwide. Kinetics is an agile, global organization 7,300 employees strong, with strategic expansion plans to leverage its 27 years of experience and innovation into new markets around the world.

About DB Capital Partners

DB Capital Partners is a global private equity investor with over 65 investment professionals in New York, San Francisco, Baltimore, London, Tokyo, Hong Kong and Sydney. Since 1997, DB Capital Partners has invested over $2 billion in 150 companies across all stages of private equity. DB Capital Partners is part of Deutsche Bank, the world's largest bank by assets. The Deutsche Bank platform provides DB Capital Partners with broad access to research, investment opportunities and capital markets expertise.

About Behrman Capital

Behrman Capital is a private equity firm with over $1.5 billion under management. The firm invests in management buyouts and capitalization of established and emerging growth companies in the information technologies, telecommunication, and B2B outsourcing industries. Milan Mandaric, operating partner of Behrman Capital, and founder of Sanmina Corporation is co-investing in Kinetics.

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