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Kinetics Japan K.K. Joint Venture Formed to Supply Gas/Chemical Equipment Solutions to Japanese Electronics Industry

SANTA CLARA, Calif., March 5, 2001 - Kinetics Group Inc., Daido Air Products Electronics, Inc. (DAP), and Air Water Inc. today announced the formation of a joint venture-Kinetics Japan K.K.-to develop, manufacture, market and sell gas panels, mass flow controllers (MFCs) and chemical and Chemical Mechanical Planarization (CMP) slurry blending equipment and distribution systems to the Japanese electronics industry. The official formation of the joint venture follows a letter of intent signed and announced by the companies in December 2000.

The ownership of the new joint venture company is 49 percent by Kinetics; 41 percent by DAP, a joint venture of Air Products and Chemicals, Inc. (NYSE:APD); and 10 percent by Air Water. Kinetics Japan K.K.'s headquarters are based in Shin-Osaka, Japan, with sales offices in Shin-Osaka and Shin-Yokohama. The joint venture's manufacturing facilities are located in Kashima, Wakayama and Hachioji.

Focused on providing sales, manufacturing, installation and service for chemical and CMP slurry blending and distribution systems, tool and fab fluid delivery systems and complete process-critical system solutions for new fabs and fab expansions, Kinetics K.K. will serve a $300+ million annual market.

"By combining Kinetics' strengths in the design and production of advanced fluid delivery systems and critical components with DAP's and Air Water's local engineering and manufacturing resources, infrastructure and market position, we've created a powerful entity to deliver total gas and chemical technology solutions to our customers," said Susumu Yamada, former senior managing director at DAP and newly appointed president and representative director of Kinetics Japan K.K. "We will focus on building strong relationships by delivering the integrated products and services Japanese electronics manufacturers require to remain at the forefront in a very dynamic and competitive industry," he said.

The new Kinetics Japan K.K. joint venture leverages an existing global joint venture agreement between Kinetics and Air Products known as TRiMEGA Electronics L.L.C. TRiMEGA supplies a complete range of gas, chemical and water process systems and materials required by fabs. Since its formation in July 1999, TRiMEGA has secured in excess of $140 million in sales, including full scope of supply contracts and collaborative projects with customers to supply critical materials and services.

Kinetics is the world's largest provider of critical process infrastructure, uniquely positioned to meet its customers' needs for capacity expansions and integration of new process and manufacturing technologies in their facilities. Kinetics designs and manufactures gas distribution systems, mass flow controllers, re-circulating coolers and chillers, chemical and slurry blending and distribution systems, and provides outsource contract manufacturing services.

DAP, a joint venture between Air Products and Chemicals, Inc. (NYSE: APD) and Air Water Inc. (formerly Daido Hoxan Inc.), is a leading supplier of gases, chemicals, equipment and services to the Japanese electronics industry, growing 20 percent per year since it was founded in 1997. Air Water Inc. was formed on April 1, 2000, the result of a merger between Daido Hoxan Inc. and Kyodo Oxygen Co., Ltd. Air Water is Japan's second largest industrial gas company.