TIDMAFS 
 
RNS Number : 4208V 
Amiad Filtration Systems Ltd 
02 November 2010 
 

2 November 2010 
 
                          Amiad Filtration Systems Ltd. 
                           ("Amiad" or the "Company") 
 
                        Amiad acquires Chinese subsidiary 
 
Amiad, the producer and global supplier of water filters and filtration systems 
for the industrial, municipal and irrigation markets, is pleased to announce 
that it has entered into an agreement, through its subsidiary in Singapore, to 
acquire the remaining 50 per cent. of the issued share capital of its Chinese 
subsidiary, Yixing Taixing Environtec Co Ltd ("Taixing"), from its local 
partners led by Mr. Pu-Long Hsu. As consideration for the shares, Amiad will pay 
upon the completion of the acquisition ("Completion") $3.1 million in cash to 
the current shareholders of Taixing, funding the acquisition from its current 
banking facilities. Completion is conditional on obtaining the required Chinese 
regulatory approvals. The conditions to Completion are expected to be satisfied 
by the end of this year. 
 
This acquisition supports Amiad's strategy of long-term investment in China, 
which the Company has targeted as a growth market. Amiad began its operations in 
China in 1992 when it entered into a distributorship agreement with Taixing. In 
July 2005, through its subsidiary in Singapore, the Company increased its stake 
in Taixing to 50 per cent. On Completion, Amiad's presence in China will 
comprise five regional offices with a workforce of 70 employees. Thereafter, the 
Company plans to widen its manufacturing facilities in China, and increase 
significantly its sales and marketing. By transferring some of its production 
from Israel to China, Amiad should be able to reduce costs and time-to-market. 
Taixing's current owners and management team, led by Deputy Chairman, Mr. Bolong 
Hsu, will remain in place. 
 
As stated in the Company's interim results announcement of 15 September 2010, 
Amiad has seen signs of returning investment in China in the steel industry as 
well as the municipal segment in the second half of the year. In addition, the 
Company is experiencing an increase in Arkal's activity in China in the 
industrial and irrigation segments, which is contributing to the consolidated 
growth. With an expanded sales and marketing force and local manufacturing 
capabilities, Amiad is well-positioned to capitalise on this returning 
investment in China. 
 
Arik Dayan, Chief Executive Officer of Amiad, said: "This acquisition forms part 
of our long-term strategy to acquire positions in companies that provide 
additional technologies or enable Amiad to enter into new territories - as 
demonstrated by our acquisitions in Turkey in 2008 and India in 2009, and the 
establishment of a subsidiary in Chile this year. Our goal is to become a 
leading global water filtration solution provider that can address the needs of 
customers in multiple markets worldwide. This acquisition is an important step 
in that direction and, with signs of returning growth in China, one that we hope 
will help us deliver shareholder value." 
 
 
Enquiries: 
 
+------------------------------+------------------------------+ 
| Amiad Filtration Systems     |                              | 
| Ltd.                         |                              | 
+------------------------------+------------------------------+ 
| Tal Yeshua, Chairman         | +972 4 690 9500              | 
| Arik Dayan, Chief Executive  |                              | 
| Officer                      |                              | 
+------------------------------+------------------------------+ 
|                                                             | 
+-------------------------------------------------------------+ 
| Panmure Gordon               |                              | 
+------------------------------+------------------------------+ 
| Andrew Godber, Katherine Roe | +44 20 7459 3600             | 
+------------------------------+------------------------------+ 
|                                                             | 
+-------------------------------------------------------------+ 
| Corfin Public Relations      |                              | 
+------------------------------+------------------------------+ 
| Harry Chathli, Claire        | +44 20 7596 2860             | 
| Norbury                      |                              | 
+------------------------------+------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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