Mulberry Ties Up with V-KOOL Distributor

SINGAPORE – February 14, 2007 – Koh Boon Hwee's Mulberry Asia Fund has entered into a joint venture with the global distributor of V-KOOL automotive solar film and formed a new company called Novomatrix Pte Ltd.

Novomatrix will acquire the automotive and architectural window film business of Globamatrix Holdings, which in addition to the premium V-KOOL product also has other brands like IQue, Huper Optik, Nanolux and Sun-X.

With a paid-up capital of $22 million, Novomatrix is planning to “double or triple” the existing window film business by growing the business worldwide and turning its brands into global names.

Globamatrix's window film business racked up revenues of $40 million last year. Through film supply, sales in the Asean region accounted for half of that figure, with China and Taiwan contributing about 30 per cent of total revenue, while the rest came from the US, Middle East and India. In Singapore, where it also offers installation, it is the market leader for automotive window film and has more than a 50 per cent market share.

Globamatrix also has a food and beverage arm, which includes the PastaMania chain of restaurants. Its two directors, Wee Hian Woon and Andrew Kwan, own 85 per cent of Globamatrix, with the rest held by parties related to the two men.

In 2004, Mr. Wee and Mr. Kwan won the Entrepreneur of the Year award from the Rotary Club of Singapore and the Association of Small and Medium Enterprises for their involvement in the food business. In 2005, Mr. Wee said Globamatrix was considering a listing to maximize shareholder value and grow its business internationally. With the acquisition of the window film business by Mulberry, that route is “still applicable”.

“That is still one of the options but first, we want to move away from being privately owned and we want to position ourselves for a much bigger scope,” said Mr. Wee. “This partnership with Mulberry provides access to bigger capital and the funds to provide growth for our business, not to mention value-added management expertise, strategic input and an international network.”

Mulberry Asia Fund owns 51 per cent of Novomatrix, and Globamatrix the rest. Mulberry is a private equity fund founded in 2004 to make private equity investments on a pan-Asian basis, with the objective of maximizing operational and shareholder value.

Registered in the Cayman Islands, its investors comprise leading global financial institutions, including banks, insurance companies and government investment entities, corporate investors and high net worth individuals. Its principals and advisers include former and current chairmen and CEOs of some of Asia's largest companies, a former prime minister, senior management and strategy consultants. Mr. Koh, who is and has been chairman or director of numerous listed Singapore companies, is a member of Mulberry's investment board.

“We are pleased to have invested in Novomatrix, with its unrivalled brands and technology, proprietary distribution, and robust growth potential,” said Kenneth J H tan, a partner of Mulberry Asia Fund. “We are particularly attracted to the management team who has built a distinctive franchise in this exciting industry.”

As for the two Globamatrix directors, the acquisition was “a good development for us”. “We also get cash returns,” said Mr. Wee.

He explained that the 90 employees would now share some of the returns also and the company is currently working on a staff share option scheme so that they will have a stake in the company.

He did not discount a possible IPO in the future but added that it was not a concern for now. “The immediate goal is to grow the business by leveraging on the synergies of our new partner,” pointed out Mr. Wee.