Brussels, October 25, 2010 - RHJ International ("RHJI") announced today that its fifty-one percent subsidiary, Honsel AG, has filed for insolvency in Germany, having failed to reach agreement with all stakeholders on a sustainable restructuring plan to allow for the continuation of the company.

As part of a restructuring in July 2009, RHJI invested EUR 50 million into the Honsel Group in exchange for a 51% stake in the group, with the remaining 49% being held by Honsel's senior term lenders. Over the last year Honsel has incurred significant operating losses. Despite the equity support provided by RHJI in the midst of the economic downturn and considerable efforts by Honsel's management to address operating issues in manufacturing in conjunction with new product launches, Honsel's financial performance remained under pressure and resulted in a liquidity shortfall.

Leonhard Fischer, RHJI's Chief Executive Officer, commented:"We regret that in spite of all efforts the company has not been able to turn around its business."

The carrying value of the investment in Honsel as reflected in RHJI's non-consolidated accounts stands at EUR 50 million. In addition EUR 20 million super senior credit facilities and EUR 15 million of leasing and factoring facilities are outstanding.