PRESS RELEASE
Date: June 20, 2002

Dyno Nobel and Ensign-Bickford Industries, Inc. Announce Merger Plans to Enhance Initiation Systems and Explosives Capabilities

(Oslo, Norway and Simsbury, CT, June 20, 2002) — Dyno Nobel ASA and Ensign-Bickford Industries, Inc. (EBI) have signed a letter of intent to merge their explosives capabilities. The merger will create a stronger organization that confirms the technical capabilities of both successful organizations. Both Dyno Nobel and The Ensign-Bickford Company (EBCo), a subsidiary of Ensign-Bickford Industries, Inc., have a major presence in blast-initiation systems and specialty blasting products. Dyno Nobel, as one of the world’s leading explosives companies, also manufactures and markets a full range of explosives products and services.

The merger of EBI’s commercial explosive initiation systems businesses, headquartered in Simsbury, Connecticut, with Dyno Nobel is subject to the completion of a definitive agreement, mutual due diligence by both companies and various regulatory processes. The merger is expected to close during the second half of 2002. The merged company will have annual revenues of almost USD 900 million (approximately EUR 1 billion) and operate in 36 countries.

The corporate headquarters of the merged company will be based in Oslo under the leadership of Dag Mejdell as Chief Executive Officer. EBCo will contribute all its assets into Dyno Nobel and in return receive a significant share holding in Dyno Nobel. The current initiation systems business activities of both companies with the exception of EBCo’s Spanish Fork, Utah facility will be merged into a single Initiation Systems Business Unit (ISBU) to capture the ongoing success of both companies in this area. Management and employees of the new business unit will be drawn from EBCo and Dyno Nobel.

This merger will result in a world-class competitor in the explosives industry with particular emphasis on technical leadership in initiation systems, explosives products including ammonium nitrate capabilities, and delivery systems. The new organization will be well positioned to deliver integrated customer solutions.

Commenting on the merger, Dag Mejdell, the CEO of Dyno Nobel, said, “The merger is being driven by the need to better respond to the changing needs of our customers. Both our customers and the explosives industry have been consolidating in recent years, and the trend is toward national or international contracts, better and more sophisticated service, and the latest in high technology explosives products. Together, with our respective strengths and capabilities, we can better meet these changing needs.”

Ralph H. Harnett, the President and CEO of Ensign-Bickford Industries Inc., added, “We both have recognized that the opportunity to partner with another successful organization with complementary capabilities in initiation systems will allow us to continue to thrive in an evolving marketplace. The merger will reinforce our shared culture of responsive, creative customer innovation and service.”

EBCo has been a worldwide and tradition-rich industry leader in blast-initiation systems and specialty blasting products since 1836. Recently, EBCo was honored with the 2002 Shingo Prize for Excellence in Manufacturing. In addition to products, the company provides value-added services and support that enable its customers to be more competitive. In addition to EBCo in the USA, the transaction includes EBI’s ownership interests in companies in Mexico, Chile, Spain, South Africa, India and Australia.

Dyno Nobel ASA is one of the world’s leading commercial explosives companies with more than 4,000 employees and operations in 33 countries worldwide. The company has a strong foothold in major markets including Scandinavia, US, Canada and Australia, and an increasing presence in growing markets including Asia, Africa, Eastern Europe and Latin America.
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