Water filtration manufacturer Amiad acquires remainder of French subsidiary

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• Acquisition establishes Amiad's European direct sales channel

KIBBUTZ AMIAD, Israel, Feb. 7, 2011 -- Amiad Filtration Systems (LSE: AFS), the producer and global supplier of water filters and filtration systems for the industrial, municipal and irrigation markets, announced today that it has acquired the remaining 34% of the issued share capital of its French subsidiary, Amiad France SARL ("Amiad France"), from its local partners Palinodie SARL, Bruno Jauneaud and Jean-Yves Gautret. Amiad will issue Palinodie SARL, Mr. Jauneaud and Mr. Gautret a total of 69,000 new ordinary shares, each worth NIS 0.5, representing 0.31% of Amiad's enlarged issued share capital.

The acquisition follows Amiad's purchase of its Chinese subsidiary and is in line with the Company's strategy to acquire 100% ownership of its subsidiaries in order to have a local presence and to establish direct sales channels in competitive markets.

"By fully incorporating Amiad France into our company, we are significantly strengthening our presence in one of our most important worldwide markets," said Arik Dayan, CEO of Amiad Filtration Systems. "Additionally, this transaction demonstrates both our commitment to growth, as it will allow us to more easily penetrate new markets in Europe, as well as our commitment to our customers, as it will allow us to more easily provide them with the service and support they need to successfully execute complex installations."

The acquisition of Amiad France also supports Amiad's long-term approach to acquire positions in companies that provide complimentary technologies or enable the Company to enter into new territories -- as demonstrated by Amiad's acquisitions in Turkey in 2008, India in 2009 and the establishment of a subsidiary in Chile in 2010.

Amiad France's current management team, led by CEO Mr. Jauneaud, and Mr. Gautret, who will oversee European sales and marketing and business development, will remain in place, ensuring a smooth and seamless transition.

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