Cambridge, Maryland | October 2, 2006 | Airpax Corporation, a leading worldwide manufacturer of protection, sensing, and control components, modules, and systems, today closed a transaction with its Japanese partner, Sanken Electric Co., Ltd., for the redemption of the latter’s shares corresponding to 50% ownership of their joint venture, Sanken-Airpax Co., Ltd. (Sakado-shi, Saitama-ken, Japan), leaving Airpax as the sole shareholder of Sanken-Airpax. Under the terms of the agreement, Airpax is now the sole owner of the enterprise, which will be renamed Nihon Airpax Co., Ltd. Financing for the transaction was facilitated by Chicago Growth Partners, Norwest Equity Partners and Airpax management.

Sanken-Airpax was established in 1968 by Sanken Electric and Airpax to manufacture hydraulic magnetic circuit protectors in Japan. The company later expanded into the production of speed and position sensors, quick-action fuses, thermostats and other sensing and protection products. Today the company is a leading manufacturer of circuit breakers for equipment protection in Japan, with a growing worldwide demand for its products. Sanken-Airpax products can be found in a variety of applications including power supplies, automotive applications, industrial equipment, photovoltaic and fuel cell power systems, telecom, factory automation, heavy construction equipment and agricultural equipment, computer applications, medical equipment, and railway systems.

Sanken-Airpax and Airpax currently participate in many complimentary markets, including power supplies, industrial equipment, photovoltaic and fuel cell power systems, telecom, heavy construction equipment and agricultural equipment, and computer applications. In every market served by Sanken-Airpax, there are numerous synergies with other Airpax business units, including Airpax Power Protection Products, Airpax Sensors and Control Systems, and Airpax Dimensions, which can be fully developed through Airpax Corporation’s extensive global organization.

Mr. Tomokazu Takahashi, formerly Vice President and Representative Director representing Airpax in the joint venture, now becomes President and Representative Director. Mr. Takahashi will report to Dennis Karr, President and CEO of Airpax Corporation.

"We enjoyed an excellent relationship with Sanken Electric for 38 years, and our joint venture served us both well. Now, the combined complimentary strengths of Airpax and Sanken-Airpax will expand our offering of technologies, products, and services for our global customer base. Sanken-Airpax and Airpax Power Protection Products are both leaders in the field of hydraulic magnetic circuit breakers, and bringing these companies together now will significantly advance our presence in that market. In addition, I am very enthusiastic about the position that Sanken-Airpax has developed in the photovoltaic and fuel cell markets in Japan. Applications in these markets represent strong growth opportunities in clean energy for the future," said Mr. Karr.