Sasamat Capital Corporation Executes Arrangement Agreement

    VANCOUVER, British Columbia, March 29 /CNW/ -- Sasamat Capital
Corporation ("Sasamat") (Pink Sheets:   SSALF) is pleased to announce that it
has entered into an arrangement agreement (the "Arrangement Agreement")
providing for the acquisition by KHD Humboldt Wedag International Ltd. ("KHD")
(Nasdaq:   KHDH) of all of the outstanding common shares (the "Sasamat Shares")
of Sasamat (the "Arrangement"), such that Sasamat will become a wholly-owned
subsidiary of KHD.  KHD currently owns, directly or indirectly, approximately
59% of the common shares of Sasamat.
    The Arrangement is structured such that Sasamat will amalgamate with a
wholly owned subsidiary of KHD under the Canada Business Corporation Act
("CBCA").  Shareholders of Sasamat will exchange their Sasamat shares for
shares of KHD (the "KHD Shares") on the basis of 0.111 KHD Shares for each
Sasamat Share held, subject to adjustment based upon any change greater than
2% in the value of the KHD shares that may have occurred as of the last
trading day prior to the effective date of the Arrangement.  The effective
date of the Arrangement is scheduled to occur on May 30, 2007.  This reflects
a purchase price of CDN$5.19 per Sasamat share and US$40.36 per KHD Share.
    The Arrangement requires court approval under the CBCA and approval by
the shareholders of Sasamat.  The Arrangement is also subject to various
conditions customary for transactions of this type.  Sasamat and KHD will
apply to the Supreme Court of British Columbia to obtain an interim order
providing, among other things, for the calling and holding of the special
meeting of shareholders of Sasamat.  The Arrangement is to be approved by
two-thirds of the votes cast by Sasamat shareholders and a majority of the
votes cast by the minority shareholders.  Sasamat expects to hold its special
general meeting on, May 22, 2007.  Further information concerning the
Arrangement can be obtained in the Sasamat circular to be filed on SEDAR at
    Upon obtaining approval of the Arrangement by the Sasamat shareholders at
the special meeting, Sasamat will make an application to the Supreme Court of
British Columbia for a final order approving the Arrangement on or about May
30, 2007.  Provided the final order is obtained, the Arrangement will become
effective once the Director under the CBCA accepts the articles of arrangement
for filing and issues a certificate of arrangement.

    For further information please contact:  R. Randall (604) 408 8538

For further information:

For further information: R. Randall, +1-604-408 8538, for Sasamat
Capital  Corporation

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