VELAN Expands its Operations in France

Business Wire, June 21, 1999

MONTREAL--(BUSINESS WIRE)--June 21, 1999--

(ME:VLN.) (TSE:VLN.) VELAN has acquired BOUVIER-DARLING SA, a company located near Grenoble, France, with 80 employees and sales of about $14 million.

BOUVIER-DARLING SA designs and manufactures gate, check and specialty valves for the nuclear and fossil power industries and gas pipelines.

This acquisition strengthens VELAN's position in Europe where the current valve market restructuring is leading to several company takeovers by large multinational valve manufacturing groups.

ALSTOM VELAN based in Lyon, of which VELAN owns 50 percent, has acquired the specialty and cryogenic control valve line of ADAREG, a company located in northern France, with 21 employees and sales of about $4.5 million.

ADAREG, a designer and manufacturer of special control valves, specializes in valves for "extreme" applications in the energy, liquefied gas, petrochemical, cryogenic and space industries.

ADAREG has recently developed a comprehensive line of control valves for very low temperatures close to absolute zero, for the superconductivity industries using liquid helium in a superfluid state.

This product line is well suited for ALSTOM VELAN's high performance and cryogenic activities. This acquisition is part of ALSTOM VELAN's high technology product diversification strategy.

Velan Inc. is a world leader in the design, manufacture and marketing of one of the most comprehensive industrial valve lines. We seek to enhance our worldwide market position while maintaining profitability at above-industry levels.