Coldwater is pleased to annouce a technology license and supply agreement with IBS. Under the terms of the agreement IBS has acquired the exclusive rights outside of the US to Coldwater's FabCurl edge control technology. Coldwater will continue to supply and support the product line in the US.
The agreement also names Coldwater as IBS's preferred global supplier for UHMW drainage elements and suction roll seals.

Coldwater is pleased to announce the purchase of two new ten meter multi axis CNC routers for the machining of drainage elements. One machine will be installed in Coldwater's European facility near Manchester, United kingdom, and the other will be added to the Atlanta plant. Both machines are expected to be in service by the 4th quarter of 2007.

Coldwater Europe is pleased to announce the recent appointment of the following agents in these respective countries: Celpap in Spain,
MHD in Belgium,
AB&M in Bulgaria and Romania,
Goled in Croatia and Slovenia,
TMP in France,
M. Carydhis in Greece,
Wefapress in Holland and Germany,
Lunari in Italy,
Overguard in Sweden (seals only),
Artois in Poland,
Exporatlas in Portugal, and
Sanrep in Turkey.
We are also pleased to announce the expansion of our long standing relationship with J. Haarla in Finland to include the entire Coldwater product line.

Coldwater is pleased to announce the development of two new premium UHMW materials for high wear applications.
CW 6500 and CW 7000 are both cross-linked and filled with a combination of clays and ceramics for the highest abrasion resistance available in a UHMW without damage to machine clothing.
CW 6500 is an extruded product made in North America, and CW 7000 is a pressed material made in Europe. The complete Coldwater UHMW product line is now listed in a new brochure in the Technical Information portion of the web site.

Coldwater is pleased to announce the appointment of Polymer Industries in Hyderabad, India as the exclusive distributor of Coldwater rubber graphite suction roll seals in India. Polymer Industries, formerly Poly Hi Solidur, now maintains a stock of Coldflex flexible rubber graphite in India that can be quickly machined to fit any suction roll.
"We see India as a large market for our products, especially as machine speeds increase. Having suction roll seals made in India will greatly reduce shipping times and costs for the mills, and eliminate tariffs compared to parts imported from Europe or North America," said Coldwater President David Withers at a recent presentation to customers in Kashipur, India announcing the new partnership with Polymer Industries.

It's been 3 years since the first commercial sale of Coldflex flexible rubber graphite in the US (after 2 years of field trials), and it's now clear that Coldflex will soon replace Coldwater's standard rubber graphite as the dominant material for suction roll seals in the world.
"Coldwater Rubber Graphite in the original rigid form has been the industry standard for machines over 250 m/min for the past 20 years", said Coldwater President David Withers, "but Coldflex offers longer running times, less power consumption, and we guarantee no breakage, all at the same price. More than 50% of our existing customers have already switched, and the product is attracting many new customers in China and Europe."
Be Flexible! For more information on the advantages of Coldflex, Flexible Rubber Graphite, contact your local representative.

Coldwater Europe Ltd. is pleased to announce the opening of a new manufacturing facility in England at 17B Todd Hall Road, Carrs Industrial Estate, Haslingden, BB4 5LA, just north of Manchester.

The new facility houses machining equipment for Coldflex and G-TEC suction roll seals, and the complete line of Coldwater UHMW drainage elements, as well as a large inventory of raw materials for quick turnarounds.

Coldwater will now manufacture and service all it's products for European customers from this new facility.

Mr. Steve Dunphy is European Sales Manager and can be reached at +44 (0) 799 966 7100. Mr. Paul Bailey is the Inside Customer Service Manager and can be reached at the new facility at + 44 (0) 1706 831916, and fax +44 (0) 1706 225372.

Coldwater is pleased to announce three new position appointments:


Mr. Tom VanLieshout is the new Regional Sales Manager for Coldwater Seals, Inc. in the Northern US, with responsibility for the Northeast, Midwest and Western United States. Tom will remain in the Appleton, WI area.

Mr. Brett Pitre is the new Regional Sales Manager for Coldwater Seals, Inc. in the Southern US, with responsibility for the Mid-Atlantic, Southeast, and Mid-Southwest. Brett will remain in Louisiana.

Mr. Steve Dunphy is the new European Sales Manager for Coldwater Seals, Inc. with responsibility for all of Europe. Steve will live and work from our new offices in the Manchester UK area.

Please join me a congratulating all three on their new positions, and in welcoming Steve to Coldwater.


David Withers

Coldwater Group, Inc. is pleased to announce the sale of its roll covering subsidiary, Coldwater Covers, Inc. to Stowe Woodward, LLC, effective today. Coldwater Group's other subsidiaries are not part of the acquisition.

Coldwater Covers, Inc.'s Oxford, Alabama facility will remain open as part of Stowe Woodward's North American network of roll covering and repair facilities, and all Coldwater Covers, Inc. employees are expected to be retained.

Coldwater Seals, Inc. is not part of the transaction, and it's businesses in suction roll seals, drainage elements and other paper machine consumables will remain part of Coldwater Group, Inc. The Coldwater Seals, Inc. manufacturing facilities in Atlanta, Georgia, Kimberly, Wisconsin and Kunshan, China will not be affected.


For more information from Coldwater, please contact:
David Withers or Tate Bradford in Atlanta
404 842 0012, or info@coldwatergroup.com.

For more information from Stowe Woodward, please contact:
Michael Stick, General Counsel, Xerium Technologies, Inc.
508 532 1726, or ir@xerium.com
or
Mike Wilkinson, General Manager, Oxford, AL
256 835 1035, or mike.wilkinson@stowewoodward.com.

Coldwater Group, Inc. of Atlanta, Georgia is pleased to announce the acquisition of the businesses and assets of Appleton International, Inc. of Kimberly, Wisconsin (formerly Appleton Specialty Products) effective today. Terms will not be disclosed.

All of the current businesses of Appleton International, Inc. are being acquired by Coldwater, including suction roll seals, drainage elements, bowed rolls, and specialty products like the Fab-Curl and the Variable Frequency Forming (VFF) unit. The Kimberly facility will remain open and most employees will be retained.

Coldwater President David Withers said, "Appleton International is a fine company with an excellent reputation over many years. They have a skilled and dedicated workforce. We look forward to learning how to better serve all of our customers by combining these two teams."

Coldwater manufactures suction roll seals, drainage elements and paper machine roll covers, and has facilities in Atlanta, Georgia, Oxford, Alabama, Kunshan, China and now Kimberly, Wisconsin.

Coldwater Seals of Atlanta, Georgia is pleased to announce the offering of a new material for suction roll seals.

ColdFlex™ is a flexible graphite suction roll seal material specially designed for the specific requirements of a suction roll seal. ColdFlex has the same graphite content as Coldwater's premium Rubber-Graphite material, but is significantly more flexible and fracture resistant because its made from a unique elastomeric composite.

ColdFlex seals will typically run longer than harder seal materials because it resists the thermal bow up into the shell that occurs with stiffer seal materials from dry contact with the shell. ColdFlex also solves the brittleness problems associated with rubber-graphite seals. And when combined with Coldwater's new G-TEC end deckle material, all suction roll seal breakage issues are solved once and for all without risk of damage to the shell. Coldwater now guarantees FREE replacement of any ColdFlex seals or G-TEC end deckles damaged in shipment or handling.

ColdFlex is available on one piece in all cross sections up to 11 meters long. It is currently available from Coldwater Seals main office in Atlanta, Georgia, and will become available though Coldwater's global network of stocking distributors in the next few months.

Coldwater Seals, Inc. is the largest suction roll seal manufacturer in the world, with more than a dozen stocking and machining distributors conveniently located for fast service.

If you would like additional information, or have any questions please contact your local Coldwater distributor or salesperson. To find the one nearest you please see our web page www.coldwaterseals.com or call +1 404 344 0314, fax 0914, or toll free in the US 1-877 344 0314.


Tommy Garder
General Manager
COLDWATER SEALS, INC.

Coldwater Seals, Inc. of Atlanta, Georgia, USA is pleased to announce that RIVA s.r.l. has become a stocking distributor of Coldwater's rubber graphite suction roll seals from its facilities in Cirie, Italy, not far from Turin.

Coldwater is the world's largest manufacturer of suction roll seal materials, with 16 distributors around the world, now including RIVA. The Coldwater seal was previously sold for many years in Italy under the name Robaseal, but will now be sold directly under the Coldwater name by RIVA.

RIVA will maintain a large stock of Coldwater Rubber-Graphite seals, air loading tubes and fittings for quick service to all of southern Europe. RIVA will also stock Coldwater's new G-TEC material for end deckles, that solves the breaking problems associated with other materials.

Mr. Gian-Carlo Riva, the owner of RIVA s.r.l., is well known to the paper mills in Italy from his many years in the industry. Coldwater is pleased to be able to offer better service to our Italian, French and Spanish customers from this new distribution point.

For more information contact Gian-Carlo Riva of RIVA s.r.l. at +39 11 922 22 03, riva@esanet.it, or Tommy Gardner of Coldwater Seals, Inc. at +1 404 842 0012, tgardner@coldwaterseals.com.

Coldwater Seals of Atlanta, Georgia is pleased to announce the invention of a new material for suction roll seals.

G-TEC™ (Graphite-Teflon® Elastomeric Composite), is a completely new material, specially designed for the specific requirements of a suction roll seal. G-TEC has a wear rate similar to Coldwater's premium Rubber-Graphite material, contains graphite and Teflon® for lubrication, but is significantly more fracture resistant and durable because its made from a unique elastomeric composite that contains no rubber.

G-TEC is initially being offering in sheets for use as an end deckle material, where its resistance to impact damage will be a significant improvement over Rubber-Graphite, without the risk of abrasion to the shell. The brittleness of Rubber-Graphite end deckles often makes them susceptible to damage, and many harder materials used as end deckles are abrasive, and will groove the shell if not fitted properly. G-TEC solves this problem once and for all.

Coldwater Seals, Inc. is also now moving forward with the scale-up of manufacturing equipment to offer full-length seal strips based on the G-TEC technology. G-TEC Seals can be made now in jointed segments, with full-length seals to follow in 2004.

Coldwater Seals, Inc. is the largest suction roll seal supplier in the world, with more than a dozen stocking and machining distributors conveniently located for fast service. G-TEC will only be available from Coldwater Seals and its licensed distributors around the world.

If you would like additional information, or have any questions please contact your local Coldwater distributor or salesperson. To find the one nearest you please see our web page www.coldwaterseals.com or call +1 404 344 0314, fax 0914, or toll free in the US 1-877 344 0314.

Beginning March 1, 2003 Coldwater Seals of Atlanta, Georgia will begin operations in a new factory in Kunshan China, just outside of Shanghai. The facility is jointly operated with Asia Paper Tech of Shanghai.

The facility is equipped with machine tools capable of manufacturing Coldwater rubber graphite suction roll seals for the Chinese market, and for export to surrounding countries. A large inventory of rubber graphite seal material will be kept on hand, along with G-TEC end deckle stock, and blue Vincon air loading tubes and fittings. Emergency service and short deliveries will now be available to all Chinese paper mills.

For more information contact Gilles Boulianne +86 21 6431 1583 in Shanghai, or Tommy Gardner +1 404 344 0314 in Atlanta.

Custom Engineered Noise Reduction for Quiet and Efficient Suction Rolls.

• Suction roll noise is often a sign of inefficient operation.
• Noise often results from the residual vacuum in the suction roll shell being released too quickly.
• Coldwater can custom engineer silencer shapes to create a more gradual pressure change.
• Reductions of over 15db are possible.
• Many installations in service today.

Combined with our "Efficiency Inspection" service, roll change intervals can be greatly extended and seal life improved.

Coldwater has over 15 years of experience in custom engineering solutions for suction roll problems.

Coldwater Group, Inc. of Atlanta, Georgia, USA is pleased to announce the formation of a manufacturing joint venture in the Peoples Republic of China to be called APT Coldwater.

APT Coldwater will be a stocking and machining distributor of Coldwater's rubber graphite suction roll seals and accessories from its new facilities in Kunshan City in Jiangsu Province, near Shanghai, by the Summer of 2002. APT, Asia Paper Technology Company Ltd. of Shanghai, is Coldwater's partner in the new venture, and already represents Coldwater Seals, Inc. in China. APT Coldwater will maintain a large stock of suction roll seal materials and will offer emergency service and quick deliveries.

Coldwater Seals, Inc is the world's largest manufacturer of suction roll seal materials, with 14 distributors around the world, now including APT Coldwater.

Asia Paper Tech, Ltd. is well known to the paper mills of China for its papermaking expertise and representation of various engineered products. APT Coldwater personnel will be trained to provide the Coldwater Efficiency Inspection of suction rolls in the field. The inspection will allow APT Coldwater to engineer the seal sizes to precisely fit each roll. Custom fitting can greatly extend seal life, and reduce horsepower consumption.

APT Coldwater will also offer technical service and support for installations of the Coldwater Roll Covering System. Guangzhou Paper Mill, a paper making company in southern China, is currently installing the Coldwater system, and will become the first paper mill in the world to manufacture their own polyurethane roll coverings at the mill site, and will supply these premium high-technology roll covers to other paper mills in the region. DeQing Roll Covering Company in Moganshan, Zheijiang near Shanghai will also be offering Coldwater roll covers to paper mills in central China later in 2002.

For more information contact Gilles Boulianne of APT at +86 21 6431 1583, email: gillesbo@sh163.net, or David Withers of Coldwater at +1 404 842 0012, email: dwithers@coldwatergroup.com.