Pistols, Hunting Rifles And Barrel Manufacturing Divested

EXETER, NH (October 4, 2000) – SIG Arms Inc. announced today that two private investors from Emsdetten, Germany, have acquired SIG Arms Inc. The sale is retroactive to January 1, 2000, and is comprised of SIG Arms Inc. in Exeter, New Hampshire; Blaser Hunting Rifles in Isny, Germany; SIG Arms Sauer in Eckenförde, Germany, and the barrel and hunting rifle production lines at SIG Arms AG in Neuhausen, Switzerland. The sale price has not been disclosed. The sales transaction requires the formal approval of the German Monopolies Commission.

In January 2000, the SIG Group issued a statement on its new strategic orientation that it would concentrate on packaging technology. With the sale of the Small Arms Division, the SIG Group is closer towards implementing the group strategy.

"SIG Arms Inc. will continue to supply consumers and law enforcement agencies with the highest quality products without any interruption of service or supply," commented Hermann Kloetzer, Executive Vice President and Chief Operations Officer for SIG Arms Inc. "The new investors have expressed a firm commitment to the operating units, the firearms industry, and a continued desire to serve both consumers and the law enforcement community."

SIG is divesting the manufacture of assault rifles in Neuhausen. SIG Arms Hämmerli in Lenzburg is being repositioned as a sales, assembly and service organization. SIG is continuing its extensive efforts to negotiate a solution for both business units outside of the group. Various options are open to ensuring service and support for the Swiss assault rifle. Long-term support is guaranteed.

SIG Arms is a leading manufacturer of premiere sporting and small arms for the military, law enforcement, and civilian markets.

SIG is an internationally active group in packaging technology. The group is organized into three strategic divisions: SIG Combibloc, SIG Pack and SIG Plastics.

Michael Lüke and Thomas Ortmeier, Emsdetten, Germany, are successfully active in the textile industry. With this acquisition, both entrepreneurs are extending their activities in a new business sector. The acquisitions in Isny, Germany; Eckernförde, Germany; Exeter, New Hampshire, USA; and Neuhausen, Switzerland, will continue to function as several independent units.