ARCELIK ACQUIRES REFRIGERATION COMPANY ARCTIC OF ROMANIA

Arcelik A.S., leading European appliance maker, announced today that it has acquired Arctic, Romanias leading manufacturer of refrigeration appliances.

Addition To Its Brand Portfolio Spurs Growth In Europe
    
Istanbul, Turkey- September 3, 2002- Arcelik A.S., leading European appliance maker, announced today that it has acquired Arctic, Romanias leading manufacturer of refrigeration appliances. The initial offer to acquire 50.97% share in the production and sales operations of Arctic made a month ago was followed with negotiations that resulted in a remarkable outcome. Under the agreement, Arcelik became the majority owner of Arctic. Arcelik will be initiating a subsequent offering period to acquire the remaining shares of Arctic from its shareholders. The payment of all the shares will be done through Ardutch, a wholly owned company of Arcelik that is based in Holland. The total amount offered for 100% of shares is $20 million.    

Continuing to make acquisitions aligned with the goal of becoming a global company, the addition of Arctic to its group of brands strengthens Arcelik's presence in the international markets. In addition to Germany, UK, and Austria, Arcelik is now the owner of the most important household appliances brand of Romania.

Arctic, which has a refrigerator plant with a production capacity of 350,000 unit/year, exports 55% of its production, with majority exported to the East European countries. Arctic has 45% market share in the domestic market, an amount much larger than that of competitors. Spontaneous brand awareness is at 35%. With 2100 employees, the company achieved a turnover of € 41 million in 2001.

Commenting on the acquisition, Nedim Esgin, CEO of Arcelik stated, "Known brand, new market share, competitive production cost, and potential of additional capacity are not only great opportunities for our business goals, but also values that contribute to our target to become a "global company". We plan on expanding the offerings of Arctic, what is now only a refrigeration brand, in four years to include all of the range of household appliances, and increase production capacity to 750,000 units/year. The investment in Arctic plays an important role in targeting one of our primary focuses, the East European market, and also providing cost advantages in logistics in this area."    

Arcelik continues to build on its core strengths, experience, and focus on its customers: the household and investors, worldwide.

About Arcelik A.S.
Arcelik A.S., headquartered in Istanbul, Turkey, is the largest private-sector industrial corporation in Turkey, manufacturing refrigerators, washing machines, dishwashers, cooking appliances, vacuum cleaners, and compressors. Arcelik has the largest distribution and after sales service network in Turkey. With its unique products, technology, and design innovations, Arcelik is ranked among the leading manufacturers of home automation appliances, and is the first to manufacture an Internet-enabled refrigerator in Turkey. Marketing of the Arcelik products is under the Beko and Arcelik brands. Additional information on Arcelik and its products can be found on the Web at www.arcelikas.com

About Arctic
Arctic is Romania's leading manufacturer of refrigeration appliances. Its plant is located in Gaesti, which is 70 km away from Bucharest. An owner of 271 thousand square meters of covered area, Arctic has a sales and service organization that is spread throughout Romania.