Nueva Generacion Manufacturas (NG) Reached an Agreement
to Purchase Commonwealth Sprague Capacitors, Inc. (CSCI)

Acquisition Consolidates NG as the One-Stop-Shop for Capacitors in the World:

Nueva Generacion Manufacturas (NG), the world wide leader in the production of motor start capacitors, reached an agreement on July 17th, 2006 to purchase Commonwealth Sprague Capacitor, Inc in its entirety. CSCI is a leader in the production of oil-filled metal case motor run and power factor correction capacitors in North America.

NG has been manufacturing motor start capacitors in their Mexico City location since 1960 and dry motor run capacitors since 1980. NG has recently developed a line of oil-filled metal case motor run capacitors to round out their capacitor line. The purchase of CSCI is giving NG faster entrance and presence into the metal case oil-filled motor run capacitor market. The acquisition of CSCI provides a complete line of oil-filled motor run capacitors which includes single and dual capacitors rated up to 480 Vac. The motor run capacitors line complements NG s core business of motor start capacitors since they are used by the same customer base. This acquisition has balanced NG s line of capacitors and has provided its customer base with a financially strong supplier with excellent service and quality.

Commonwealth Sprague is a manufacturer and international marketer of AC capacitors and power factor/energy savings products for industrial markets. Their products include single phase AC capacitors for motor run, lighting, filtering, and general purpose applications as well as 3-phase power factor correction cells for use in power factor correction and harmonic filter assemblies. CSCI is currently manufacturing their capacitors in Juarez, Mexico.

NG will keep the CSCI name and continue to operate the company as its own company. CSCI will continue to manufacture capacitors in Ciudad Juarez, Chihuahua in the north of Mexico.

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