Acquisition in Hirschmann

HG Capital Trust PLC
16 February 2004


The following is the text of a press release issued by HgCapital, manager of the
investment portfolio of HgCapital Trust plc, which participates in all of
HgCapital's investments.

   HgCapital backs €115 million management buy-out of Hirschmann Electronics

'London, 16 February 2004.  HgCapital, a leading European private equity
investor, has agreed to acquire Hirschmann Electronics GmbH & Co. KG 
('Hirschmann') from Rheinmetall AG in a €115 million management buy-out. The
transaction, which is subject to competition authority clearances, is expected
to complete in March.

Hirschmann is a world-market-leading supplier of electronics equipment,
components and related accessories. Its principal products include rail-mounted
industrial Ethernet and other industrial networking equipment, sophisticated
car-antenna electronics, television transmission equipment, and safety systems
for mobile plant equipment such as cranes.

Founded in 1924 and headquartered in Neckartenzlingen near Stuttgart, Hirschmann
has manufacturing plants in Germany and Hungary as well as sales and services
operations in Europe, the USA, the Far East and South America.  In 2003, it
employed a workforce of around 1,750 and generated worldwide sales of over €280
million.

Hirschmann develops state-of-the-art, bespoke car antenna systems for BMW,
Daimler-Chrysler and Audi.  It has also recently implemented an Ethernet network
in VW's Wolfsburg factory, the largest car factory in the world, which is
manufacturing the new Golf.

Trevor Bayley of HgCapital in Frankfurt, said: 'Hirschmann is a world-class
company with a superb product range, an international customer base and
excellent prospects.  The management team, led by Reinhard Sitzmann, is
highly-experienced and we are looking forward to working with them to support
the continued success of the business.

'This is HgCapital's fourth acquisition in Germany during the last fourteen
months and reinforces our commitment to the market.  Our continued success is
based on our sector expertise, our tenacity in completing complex transactions
and on our ability to build upon strong partnerships.'

'The transaction marks the final step in the successful divestment of
Rheinmetall's electronics companies, allowing the group to focus on its core
automotive and defence businesses and to accelerate the globalisation of both
these Rheinmetall sectors', said Klaus Eberhardt, CEO of Rheinmetall AG.

Reinhard Sitzmann, Management Board Chairman of Hirschmann Electronics stated, '
For Hirschmann, this new owner represents a vast opportunity.  HgCapital is an
investor that will provide sustained support for the ambitious growth goals and
the ongoing globalisation of the Hirschmann product divisions.  At the same
time, our unchanged management team is an assurance of continuity in customer
relations.'

Debt facilities were arranged and fully underwritten by NIB Capital and Bank of
Ireland.  HgCapital was advised by PricewaterhouseCoopers Corporate Finance,
Lovells, PricewaterhouseCoopers Transaction Services and L.E.K.

                                    - ENDS -
For further information contact:

Stefan Winterling                                  [phone] (office)
HgCapital Beratungs GmbH & Co. KG                  [phone] (mobile)

Reinhard Sitzmann
Hirschmann Electronics GmbH & Co. KG               [phone]

Carsten Deuster
Rheinmetall AG                                     [phone]

David Bick/Trevor Phillips
Holborn                                            [phone]




Note to editors:

HgCapital is a leading provider of finance to the European private equity market
and has offices in the UK and Germany.  It focuses on companies with enterprise
values ranging from €40 million to €400 million and specialises in the following
industry sectors: media, industrials, consumer, healthcare, technology and
leisure.

HgCapital's investments within Germany have included:

•  W.E.T. Automotive Systems - world market leader for seat heating systems
•  FTE Automotive - world market leader for hydraulic clutch actuation systems.
•  FTE Automotive's acquisition of Automotive Products (USA) Inc.
•  PII Group's acquisition of Pipetronix GmbH.
•  Trados - leading language translation software.
•  Verigen - cartilage repair technology.

HgCapital services over 200 institutional clients and manages HgCapital Trust
plc, a quoted vehicle that participates in all of HgCapital's investments.
HgCapital has funds under management of €1.1 billion.

www.hgcapital.net

HgCapital is the trading name of Hg Investment Managers Limited and Hg Pooled
Management Limited. Registered office: Third Floor, 3-5 Minerva House, Montague
Close, London SE1 9BB.  Authorised and regulated by the Financial Services
Authority.



16 February 2004

                      This information is provided by RNS
            The company news service from the London Stock Exchange