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COMPANY NEWS

Cabot Corporation (NYSE: CBT) entered into an agreement to purchase Norit N.V., the global leader in activated carbon from affiliates of Doughty Hanson & Co. Managers Limited and Euroland Investments B.V. for $1.1 billion. The acquisition strengthens Cabot’s specialty chemicals portfolio with a non-cyclical, high growth and high margin business.

"Norit’s leading market position, unique technology and strong financial performance is an excellent fit with Cabot’s portfolio. This acquisition supports the ongoing transformation of our portfolio to a higher margin, less cyclical, specialty chemicals focused company," said Cabot President and Chief Executive Officer, Patrick Prevost . "The acquisition of Norit is a natural extension of our core R&D and applications development competencies. Norit is the leader in purification and we are looking forward to the Norit team joining Cabot."

Activated carbons are performance materials used in multiple high-end applications including environmental protection, air and water purification, food and beverages, pharmaceuticals and catalysts. Norit operates 10 manufacturing facilities throughout the Americas and Europe. It employs 760 people and provides the widest and most differentiated range of activated carbon products of any producer. Norit generated sales of $360 million and adjusted EBITDA of $92 million for the trailing twelve months ended December 31, 2011. The business has grown 12 percent annually since 2007 and will become an important component of Cabot’s growth strategy. Norit’s current chief executive officer, Ronald Thompson, will continue to lead the business.

"Norit’s differentiated products for high-end applications drive substantially higher margins relative to competition. Norit’s fundamental business performance generates EBITDA margins in excess of 25 percent and we expect annual revenue growth in the range of 10 percent to 12 percent," said Cabot Chief Financial Officer, Eduardo Cordeiro. "We remain confident in our adjusted EPS target of $4.50 in 2014 from our base business, and the Norit acquisition will be incremental to that target."

Cabot expects the acquisition to be financed with a combination of approximately $200 million of cash and $300 million of borrowings under its existing revolver. In addition, the company plans to issue approximately $600 million of long-term debt prior to closing. The transaction is expected to close within calendar year 2012 and is conditional upon Dutch works council consultation and advice and approval of the competition authorities in the U.S. and Germany.

J.P. Morgan is Cabot’s financial advisor for the transaction. Wachtell, Lipton, Rosen & Katz is Cabot’s legal advisor for the transaction, with De Brauw Blackstone Westbroek and Slaughter & May serving as Dutch and English counsel, respectively.

Donaldson Company, Inc. (NYSE: DCI) announced its financial results for its fiscal 2012 third quarter. Summarized financial results are as follows (dollars in millions, except per share data):

"The continued strength in many of our mid-cycle businesses and the beginning of the recovery of our late-cycle Gas Turbine Systems products, combined with ongoing solid execution across our Company, helped us set new quarterly records in sales, operating margin, and EPS," said Bill Cook, Chairman, President and CEO. "Led by a 15 percent increase in Gas Turbine Products, sales growth was strong across all three of the product groups within our Industrial Products segment, with overall sales up 11 percent. Sales in our Engine Products segment grew 8 percent as new equipment build rates at our Off-Road and On-Road OEM Customers remained healthy."

"We achieved a record operating margin of 15.2 percent due to the combination of operating leverage in our plants and distribution centers, our focus on effective execution in support of our Customers and the benefits of the many Continuous Improvement initiatives across our Company."

"We are forecasting continued growth through our fourth quarter with full year sales expected to be up approximately 9 percent over last year. Forecasted business conditions in our end markets remain consistent with last quarter's outlook through the end of our fiscal year: strong in the Americas, stable in Europe, and slowly improving in China.

Gross margin was 35.3 percent for the quarter and 35.1 percent year-to-date, compared to prior year margins of 35.2 percent for the quarter and year-to-date.

Operating expenses for the quarter were $129.8 million, up 3.2 percent from $125.8 million last year primarily due to the increased sales volume. As a percent of sales, operating expenses were 20.1 percent in the third quarter compared to last year's 21.2 percent. Operating expenses year-to-date were $380.4 million, or 20.7 percent of sales, compared to $361.5 million, or 21.7 percent of sales, last year.

FY12 Outlook

We expect to achieve full year sales, operating margin, and EPS records.

We forecast our FY12 sales to be approximately $2.5 billion, or up about 9 percent from the prior year. Our current forecast is based on the Euro at US$1.28 and 80 Yen to the US$. With the recent depreciation of the Euro against the US$, we do see foreign currency translation to be a headwind for the balance of our fiscal year.

Our full year operating margin is forecast to be 14.2 to 14.8 percent.

Engine Products: We expect full year sales to increase 8 to 10 percent, including the impact of foreign currency translation.

Industrial Products: We forecast full year sales to increase 8 to 10 percent, including the impact of foreign currency translation.

Our Industrial Filtration Solutions' sales are projected to increase 7 to 10 percent and assume a continuing improvement in general manufacturing activity in the U.S., slowly improving conditions in Asia, and forecasted strong fourth quarter project shipments in Europe.

We anticipate our Gas Turbine Products' sales to be up 17 to 20 percent due to the recent improvement in the large turbine power generation market and ongoing strength in the oil and gas market segment. We have a very strong schedule for fourth quarter project shipments to our Customers.

Special Applications Products' sales are forecast to be level with the prior year as growth in our membrane and venting product sales should offset the reduction in our disk drive filter sales related to the Thai floods last fall.

Lydall, Inc. (NYSE: LDL) financial results for the first quarter ended March 31, 2012

Highlights:

• Sales of $96.8 million compared to $101.7 million in Q1 2011

• Gross margin of 19.9%, an improvement of 220 basis points from Q1 2011

• Operating income of $5.4 million, up 19.0% from Q1 2011

• Income from continuing operations of $3.9 million, 48.6% higher than Q1 2011

• Company Board of Directors approved the repurchase of up to one million shares on the open market from time to time (approximately 5.9% of outstanding shares)

In Q1 2012, the Company revised its Thermal/Acoustical reportable segment into two reportable segments (Thermal/Acoustical Metals and Thermal/Acoustical Fibers) in order to better align them with management’s strategic approach and operational decision-making. The decrease in net sales in the first quarter of 2012 compared to the same period in the prior year was primarily attributed to $7.4 million lower sales in the Performance Materials segment, partially offset by increased sales in the Thermal/Acoustical Metals and Thermal/Acoustical Fibers segments and Other Products and Services (OPS).

Performance Materials was negatively impacted in Q1 2012 by weaknesses in the European and Asian industrial air filtration markets as compared to Q1 2011, when the segment reported record sales, as well as lower demand for industrial thermal insulation products and life sciences filtration products in North America as a result of customers adjusting inventory levels during the first quarter of 2012.

The increase in gross profit and gross margin in Q1 2012 compared to Q1 2011 was attributed to the Thermal/Acoustical Fibers segment, which benefited from improved manufacturing processes and a lower cost structure, and the Thermal/Acoustical Metals segment, which saw increased sales and better absorption of fixed costs as well as lower raw material costs. These gains were partially offset by reduced gross profit and gross margin in the Performance Materials segment. The Performance Materials segment results were affected by the lower sales volumes and related absorption as well as unfavorable mix among product sales.

The increase in operating income in Q1 2012 compared to Q1 2011 was driven by the increase in gross profit described above as well as an improvement in Life Sciences Vital Fluids (included in OPS) operating income, partially offset by a $0.4 million increase in selling, product development and administrative expenses resulting primarily from an increase in corporate office professional services expenses.

•New French door refrigerator filter removes 98 percent of five trace pharmaceuticals from water and ice

•Consumers rate the protection of their water supply as their number-one environmental concern

GE offers the most advanced water filtration system in the industry as part of its recently launched French door refrigerators. The first-of-its-kind water filtration system has been tested and verified by an independent third party to remove 98 percent of five trace pharmaceuticals, including ibuprofen, atenolol, fluoxetine, progesterone and trimethoprim, from water and ice.

Among the reasons pharmaceuticals end up in our water supply is consumers flushing them down the toilet without realizing where they might end up. Or, if products are tossed in the trash, they often wind up in landfills, where they can seep into groundwater—and ultimately can come through water taps.

"Water treatment plants do a great job of cleaning our water, but they can’t always filter out all contaminants, and trace pharmaceuticals are left in the drinking water that comes into our homes," said John Boyd, refrigeration marketing manager for GE Appliances. "Through advanced technology, the water filters from our new GE French door refrigerator remove 98 percent of contaminants and deliver cleaner, clearer, easily accessible drinking water."

In addition to delivering cleaner water to consumers, the new filters also are easy to remove and replace. The French door refrigerators’ water filter is conveniently and newly located on the door panel, allowing for quick and easy filter replacement in the GE Profile and Café models.

Water filtration systems are available on all GE, GE Café and GE Profile-branded French door refrigerators. The GE French door refrigerators are available at retailers nationwide. The estimated retail price ranges from $1,699 to $2,999.

W. L. Gore & Associates, Inc. will feature its polytetrafluoroethylene (PTFE) membrane filter technology at SEMICON West 2012, from 10-12 July at the Moscone Center, San Francisco, USA.

The GORE® filters have been developed for liquid filtration applications in microelectronics processing where high flow is required – including filters for ultrapure water and for high purity chemical processors. Processors are faced with the challenge of increasing retention without decreasing flow or increasing flow without losing retention. Gore says that by using its most advanced PTFE membrane, a flow rate several times that of traditional best-in-class filters can be achieved without sacrificing particle retention.

Gore’s family of cartridge filters use the PTFE membrane to improve process performance and reduce the total cost of filtration for ultrapure water, de-ionised water and high-purity bulk chemicals used in the manufacture of semiconductors and other microelectronics.

The filters enable semiconductor fabs to realise both improved performance and lower cost of ownership. These can upgrade retention performance and reduce particle counts while maintaining desired flow rate, as well as enabling reduced processing times, higher flow rates and faster bath turnovers.

These filters are currently used by leading fabs worldwide for ultrapure and de-ionised water facilities. They have reduced their total cost of filtration, improved water quality, and protect against upstream system upsets.

For processors of high-purity bulk chemicals used in semiconductor fabrication and other microelectronics manufacturing processes, the use of such filters has enabled improved product quality, increased production capacity and reduced cost of filtration for high viscosity fluids, acids, bases, solvents and speciality chemicals.

Mott Corporation has introduced a new all-metal filter design that accommodates its smallest high purity gas filter footprint to date.

This filter design is the only one available that meets the Semi requirements for 9 LRV (99.9999999% efficiency) down to 0.003 µm at the recommended flow rate. It was specifically developed to support the industry’s transition to 450 mm wafer equipment.

As part of Mott’s Defender Series Filters, this filter can accommodate flow rates of 300 slpm in filter length of 3.31 inches (84 mm) or 650 slpm (127 mm) in lengths of 5.0 inches. This all-metal filter provides an extremely low pressure drop for the reduction of vacuum conductance allowing for fast wafer chamber evacuation and fill. With operating pressures up to 2,500 psig and operating temperatures up to 450°C, the Defender Series can support virtually every application in the semiconductor industry.

Mott says that it is the first to offer an all-metal gas filter that can provide these efficiencies and these very high flow rates in such small footprints.

Adhesives for the Filter Industry, a new brochure from Henkel Corporation, reviews the company's comprehensive line of products for filter assembly. The 26-page brochure provides technical information on more than 100 products for use on liquid, industrial, high- efficiency, HVAC and water filters.

Manufacturers face many decisions when selecting the most appropriate adhesive for a particular filter bonding application and must analyze variables like substrate suitability, bond strength, viscosity, open time, flexibility and temperature resistance. The new filter brochure discusses the five main categories of filters and presents selector charts for each type. Each chart groups adhesive products by application (for example: frame assembly, membrane bonding, pleating, end-cap molding, wire mesh/scrim attachment, gasketing and more), and provides a range of critical performance data on the appropriate adhesive technologies for that application.

To download a copy of Adhesives for the Filter Industry, go to: www.henkelna.com/filters