Telcon Ltd. Expands PCD Tools to Support U.S. Automotive and Airframe Industries
with Acquisition of  Supreme Saws Ltd.

AFULA, Israel – January 2009

Telcon Ltd., manufacturer of polycrystalline diamond (PCD) and cubic boron nitride
diamond tipped cutting tools, increased its capacity and has expanded its product
line to support the U.S. automotive and airframe industries with its recent acquisition
of Supreme Saws Ltd., United Kingdom. The terms of the agreement are not disclosed.

The Supreme Saws acquisition increases Telcon’s product lines by adding PCD circular saws
to its product line. Supreme Saws, a woodworking tool manufacturer of PCD tools from he UK, 

are specialists in PCD tool manufacturing and was among the first United Kingdom
companies to manufacture PCD saw blades.

The steel bodies of circular saws are tensioned and dressed to ensure uniformity,
balance and stability. PCD saw blades have 100 times longer life expectancy than
carbide saws and can be used on a vast selection of materials such as wood, melamine
and paper coated panels, high pressure laminate veneered panels, reinforced glass
fiber and aluminum composites.

“Composite and other light materials such as aluminum alloys are being utilized more
and more in the automotive and airframe industries”, said John Eisner, Export Manager,
Telcon. “These materials can be machined more economically with PCD precision tools
because high speed steel and carbide tools do not perform as well on composite materials
as PCD tools. Today there is increased interest and awareness of the advantages
of PCD tools.”

Telcon Ltd. is a leading manufacturer of polycrystalline diamond (PCD) and cubic boron
nitride diamond tipped cutting tools, markets to the woodworking, automotive and
aerospace airframe and composite material machining industries. Telcon offers a diverse
range of diamond tools, inserts, countersinks, routers, router bits, ball end mills,
nd mills, profile cutters, T-slots, combined drills, reamers, rabbiting cutters and drills.

Telcon is equipped with wire EDM grinding and cutting, EDG grinding and CNC grinding
and eroding machinery. ISO certified, Telcon has strict quality assurance controls and
follows European standards.