Concentric completes acquisition of Licos

Licos to increase sales by 50% over three years with improved margins
Concentric AB (“Concentric”) today announces the completion of the acquisition
of Licos Trucktec GmbH (“Licos”), a leading producer of water pumps and
electromagnetic fan clutches for the truck industry, for  MEUR 9,25 where MEUR
8,75 has been paid in cash and MEUR 0,5 shall be satisfied with shares in
Concentric. Concentric will assume debt of MEUR 3,1. The acquisition will
broaden Concentric’s product portfolio in a growing niche, the semi-variable
water pump, and presents an opportunity to leverage Concentric’s position in the
U.S. for Licos electromagnetic fan clutches.

German based Licos’ high quality products have attracted the business of global
top-tier OEMs. Licos’ sales amounted to EUR 14 million in 2012 with an EBIT of
MEUR 0,25 corresponding to an EBIT margin of 1.8%.

David Woolley, CEO of Concentric, comments:

“Licos is a perfect strategic fit for Concentric, as their controllable water
pump complements our own fully-variable technology, enabling us to offer
customers a full range of water pumps to meet every need. Concentric will also
gain access to Licos know-how in the field of electro-magnetic and friction
clutch technologies. Licos in turn will benefit from a growing range of
opportunities within the successful and expanding Concentric family. As existing
contracts include a ramp-up, we believe Licos sales will grow by 50% over the
coming three-year period and enable them to reach Concentric’s existing margin
levels.”

Controllability is an increasingly important driver within the commercial diesel
industry and Licos clutch technology has potential applications across the range
of Concentric’s oil, water and hydraulic pumps as well as in fans and
compressors. The Licos combination of magnetic and friction clutch technology
makes it possible to achieve zero-loss performance at high load conditions. The
two companies have already collaborated in the field of magnetic clutches and
this technology will enable Concentric to offer significant fuel efficiency
gains across a wider range of applications. In addition, Licos has a wealth of
experience in manufacturing and production supply of specialist clutch
technologies with major OEMs declaring the proven net fuel benefits of up to
0.7%.

The seller is Dr. Wolf Beteiligungs GmbH and the transaction was completed on
June 27, 2013 and has gained all the necessary approvals. The current managing
director of Licos, Dr. Andreas Wolf, will remain in the company and help
integrate the business over the coming months. As part of consideration for his
shares in Licos, and part of the total purchase price, Dr. Andreas Wolf has
received EUR 500,000 in Concentric shares also ensuring his long-term commitment
to the combined company.

The trading results of Licos will be consolidated in Concentric’s financial
statements as of 1 July, 2013.

About Licos

Licos is a leading producer of electromagnetic clutches for water pumps and fan
applications within the truck industry, with belt drive components for heavy
-duty diesel engines completing its product portfolio. As an experienced user of
advanced laser manufacturing technology, Licos can tailor its products to
customer specification.  For the financial year ended 31 December 2012, sales
amounted to EUR 14 million with an EBIT margin of 1.8%.  Licos employs around 55
people from a single production and engineering facility based in Markdorf,
Germany.  Further information about Licos is available from the company’s
website www.licostrucktec.com.

For further information, please contact David Woolley, CEO of Concentric. Tel
+: +44 121 445 6545