Neo Material Technologies Closes Acquisition of Recapture Metals Limited

    TORONTO, Aug. 31 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company" or "Neo") announced the closing today of the acquisition whereby Neo
has acquired 100% of all issued and outstanding shares of Recapture Metals
Limited ("Recapture").
    Neo has issued 4.5 million new common shares and paid CDN$6.5 million in
cash to Recapture shareholders. Of the total consideration, 2.25 million of
the new common shares and CDN$3.0 million will be held in escrow and released
by an escrow agent in accordance with the terms of an escrow agreement in
place, and subject to certain post closing adjustments. Neo will also make
additional payments in cash or new common shares, at Neo's option, conditional
upon certain agreed upon EBITDA targets for three calendar years, commencing
in 2010, being met or exceeded.
    "The expansion of Neo's product line with Recapture's complementary rare
elements gives Neo a footprint into new growing and exciting applications.
Recapture also diversifies Neo's production base beyond the Asia Pacific
region," said Constantine Karayannopoulos, President and CEO. "We welcome
Larry Seeley and his team at Recapture to Neo and look forward to growing the
business with them."
    Recapture produces, reclaims, refines and markets high value niche metals
and their compounds which are primarily used in the wireless, LED, flat panel,
solar and catalyst industries. Recapture's current commercial product lines
include gallium and indium and it is in the process of commercializing a
rhenium recycling operation. With operations in Canada, the United States and
Germany, Recapture has approximately 65 employees. Recapture will become part
of the Company's Performance Materials Division (formerly the AMR Performance
Materials Division).
    GMP Securities L.P. acted as financial advisor to Neo on this

    About Neo Material Technologies

    Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders, rare earths and zirconium based
engineered materials and applications, and other high value niche metals and
their compounds through its Magnequench and Performance Materials business
divisions. These innovative products are essential in many of today's high
technology products. Magnequench's Neo powders are used to produce bonded
magnets, generally used in micro motors, precision motors, sensors and other
applications requiring high levels of magnetic strength, flexibility, small
size and reduced weight. Rare earth and zirconium applications include
catalytic converters, computers, television display panels, optical lenses,
mobile phones and electronic chips. Products from the newly acquired Recapture
Metals Limited are primarily used in the wireless, LED, flat panel, solar and
catalyst industries. The Company is headquartered in Toronto, Canada and has
approximately 1,375 employees in 19 locations, across 10 countries.

    %SEDAR: 00002061E

For further information:

For further information: Michael Doolan, Chief Financial Officer, (416)
367-8588, ext.335, Website:, e-mail:; Ali Mahdavi, Investor Relations, (416) 962-3300, ext.
225, e-mail:

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