12.19.2005

ThyssenKrupp Materials NA acquires Hearn Group of Companies

ThyssenKrupp Materials NA, Inc. announced today that it entered into an agreement with The Hearn Group to acquire its operations, including Hearn Industrial Park, Hearn Warehousing & Distribution, Hearn Logistics and Hearn Automotive. The purchase also includes the former PSA Quality Systems business unit, which was acquired by The Hearn Group in November 2004, and Summit Personnel Services, Inc.

The Hearn Group, headquartered in Windsor, Ontario, Canada, is a full-service provider of customized product management solutions, including third party logistics and supply chain management, engineering, quality control, returnable container program and industrial facility maintenance. The company was established in Windsor, Ontario in 1966 by Donald Hearn, Sr., and over the past four decades has expanded to various locations in Canada, the United States and Mexico. The Hearn Group also operates Don Hearn and Sons Inc., a construction division, which is not included in the transaction.

Concurrent with the acquisition, the company announced the formation of ThyssenKrupp Industrial Services NA, a new business unit which will incorporate the Hearn operations and will offer a one-stop-shop source for a wide range of production support and supply chain management services to its customers. Malcolm Gill, currently Senior Vice President of ThyssenKrupp Materials NA was named President of the newly formed ThyssenKrupp Industrial Services NA unit.

Commenting on the agreement, ThyssenKrupp Materials NA'’s COO Richard J. Greaves stated:

"“The acquisition of the Hearn Group will provide us with a strategic opportunity to further expand our services in the North American Free Trade Agreement ("“NAFTA"”) region. The Hearn Group offers us unique synergies and an established market presence that make this acquisition an excellent fit for ThyssenKrupp Materials NA'’s long-term growth objectives."”

He also noted that The Hearn Group has an outstanding client base which ThyssenKrupp Materials NA will continue to serve without interruption and with the promise of the highest quality of service in the industry.

Hearn Group president, Donald Hearn, Sr., acknowledged that the acquisition of his company by ThyssenKrupp will further the corporate image and offerings it can provide. Continuing, Mr. Hearn stated:

"“ThyssenKrupp has an excellent reputation in logistics and materials management. We are very pleased that they have chosen the Hearn Group as their model to launch an Industrial Services initiative in North America, focusing on the automotive and other key manufacturing sectors. We look forward to achieving new successes under our combined leadership and resourcefulness."”

ThyssenKrupp Materials NA is also pleased to announce that it will retain all of the key operational and management personnel of the Hearn Group, including Don Hearn, Jr. Chief Operating Officer; Steven Hearn, Vice President; Joe Carrothers, Vice President; and Sam Baioff, Chief Financial Officer.

Separately, Don Hearn, Sr., will stay on with ThyssenKrupp Industrial Services in a consulting capacity for a period of 3 years to assist with the transition.

The Hearn Group is a multi-divisional provider of warehousing, logistics and automotive services supporting automotive plants throughout North America. Based out of Windsor, Ontario, Canada, The Hearn Group also has operations throughout Canada, the United States and Mexico. All facilities are serviced by ship, rail and truck, and are located at key transportation sectors. The Hearn Group was started in 1966 by Donald Hearn Sr.