9-Jan-08 10:00 AM CST

Siemens Water Technologies Sells Hydrocarbon Services Unit to FCC

On December 5, 2007, Siemens Water Technologies reached a deal with Formento de Construcciones y Contratas, S.A. (FCC) of Madrid, Spain for the sale of its Hydrocarbon Services Group. The deal is expected to close on January 31,2008. The unit will do business as FCC Environmental.

The Hydrocarbon Services Group includes approximately 600 employees at about 40 hydrocarbon processing and recycling service locations primarily along the east coast and the Gulf Coast areas of the United States. Hydrocarbon Services has been part of the Siemens Water Technologies business for approximately 10 years. Siemens has determined that the Hydrocarbon Services group is not completely aligned with the overall Water Technologies’ growth strategy focused on domestic and international water treatment systems and services. As a result, Siemens Water Technologies sought a buyer for the Hydrocarbon Services business.

FCC is one of the twenty largest companies in Spain and a major player in the waste handling and recycling market in Spain, Central Europe and South America. FCC’s revenues are approximately $19 billion (US)and they have approximately 97,000 employees world wide. With the acquisition of Hydrocarbon Services, FCC reports that they will become the second-largest player in the used oil recycling sector.

FCC is very interested in using the Hydrocarbon Services Group as a platform to grow significantly in the environmental services industry.

FCC and Siemens report that they are vested in a smooth transition. Customers and constituents should expect the same quality of service and environmentally responsible and compliant operations as they have received in the past.

If you have questions related to this release, contact Ken Cherry, Vice President/General Manager at 281-227-9111.