4th July 2006

Valpak has strengthened its range of compliance and recycling solutions with its purchase of the Waste Management Group (WMG) recycling facility in Preston, which will be integrated into the current Valient Recycling operation.

The Preston facility is one of the UK's leading plastic sorting and grading sites and draws material from across the whole of the UK. Historically the site specialised in plastic film and plastic bottle recycling but has evolved to handle a wide range of other materials from industry and the domestic waste stream, including steel & aluminium cans, paper and cardboard. It has one of the UK's most advanced automatic sorting lines which separates plastic bottles from metal cans and then further separates the plastic bottles by polymer type.

Valpak CEO Steve Gough explains: "This is a very significant and exciting move for the company. The acquisition is great news for our compliance members and recycling customers and for the industry as a whole. Through the combination of Valient Recycling Ltd (VRL) and WMG, Valpak will now be in a better position to directly address the challenges of recovering more packaging from the domestic waste stream highlighted in our 'PackFlow' research. In addition, this acquisition will enable VRL to expand its service offering to UK businesses by combining the WMG operation into its existing partner network. Both of these activities will increase the availability of recyclables to the reprocessing industry and strengthen PRN supplies for our members."

Phil Strutt of WMG, agrees. "This is a good deal for all concerned. Both WMG's existing customers and VRL's customers can be assured of a seamless transition and continued and improved level of service and value from the new arrangement. I'm confident that the access to VRL's recycling infrastructure and national partners will mean that WMG can become even more effective in diverting recyclable packaging materials from the household and commercial waste streams."

With the addition of WMG to its operation, VRL expects to handle over 350,000 tonnes of recyclable materials per annum. Steve Gough continues: "This is a truly landmark year for VRL, and we're looking forward to developing and expanding the work it does in supplying recyclables to the reprocessing industry."

For further media information contact Louise Esplin at Charlton Communications, e: louise.esplin@charlton.co.uk t: 01235 862585

Notes to Editors

1) Valpak is the UK's largest Producer Responsibility scheme, meeting the obligations of 3,000 UK businesses under the Packaging Waste Regulations. Under these regulations, companies are required to invest in recycling through tradeable certificates known as Packaging Waste Recovery Notes (PRNs). As well as offering competitive compliance with the Packaging Waste Regulations, Valpak also advises members on other issues of Producer Responsibility including WEEE, Farm Films and Batteries. Further information can be found at www.valpak.co.uk.

2) Valient Recycling (a wholly owned subsidiary of Valpak) currently handles 250,000 tonnes of recyclable packaging materials to generate PRNs for Valpak members. VRL sources material from the waste industry, Local Authorities and UK businesses. The material is sorted and graded and supplied to markets in the UK, Europe and the Far East.

3) Waste Management Group handles 50,000 tonnes of dry recyclate including a significant proportion of plastic bottles arising from the domestic waste stream. The bottles are sorted and graded using the latest sortation technology.