NEWS

Robert Klein, Managing Director (212) 213-2009
Brian Graff, Managing Director (212) 213-2009
Brian Maney, Director, Corporate Communications (301) 951-6122

By Maureen Flanagan

SynOdys Group SA is a leading manufacturer of systems and equipment to protect people and goods from nuclear, biological and chemical risks. The company's electronic dosimeters and radioactivity monitoring systems (RMS) help ensure the safety of nuclear power plant operations and workers who perform jobs in radioactive and other hazardous environments. Founded in 1965, synOdys has grown substantially over the past few years. Expansions to the company's product line and customer base, incorporation of its products into military and homeland defense markets, and several key acquisitions have firmly established and enlarged synOdys' capabilities in European and U.S. markets.

In a June 16, 2004 buyout, synOdys was acquired by American Capital Strategies, Ltd. (Nasdaq: ACAS). American Capital's investment took the form of senior debt, senior and junior subordinated debt and common and redeemable preferred equity. American Capital is also providing a revolving credit facility. As part of the transaction, Acland and synOdys management also acquired an ownership interest in Global Dosimetry Solutions, Inc., an American Capital portfolio company, and are maintaining a significant equity investment in synOdys.

Recent American Capital investments include Global Dosimetry Solutions, Inc., a manufacturer of "passive" dosimetry products (which record but do not provide real-time monitoring of radiation doses), PaR Nuclear Holding Company Inc., a leader in the design, assembly, installation and service of large-scale, high-precision robotic systems, and Imaging and Sensing Technology Corporation, a leading designer and assembler of equipment for use in nuclear power plants.

Since 1997, American Capital has invested more than $2.7 billion in middle-market companies. Its current portfolio includes nearly 100 companies in a wide range of industries. For more information about American Capital's portfolio click here.

With a significant share of the worldwide electronic dosimeter market, synOdys has an installed base of some 300,000 dosimeters in nuclear power plants throughout the world. The company's dosimetry systems include badges and reading devices that provide real-time reading of ambient radiation and emit an alarm when a pre-set limit is exceeded. In addition to nuclear power plants, they are used by research labs, military forces, medical facilities, and homeland security departments.

synOdys' Radioactivity Measuring Systems (pictured at left) are fixed to various areas in a nuclear power reactor and send data to a central computer that continuously tracks radiation levels. Alarms tied to these monitors are present in rooms where employees may be at risk and are set off whenever a dose rate threshold is exceeded. The company also sells accompanying software to track specific aspects of RMS operations. RMS are required in nuclear power plants and are installed when a plant is built. The company's large installed base of these systems positions it as the preferred provider for replacement services and ongoing parts requirements.

synOdys is also a market leader in surface contamination products, which enable the monitoring of radioactivity on the surface of objects of all sizes. These devices are used to check trucks entering or exiting nuclear facilities as well as the clothing and tools of nuclear plant personnel. In a homeland defense setting, these products could be used to check goods crossing a border station and baggage on airport conveyer belts. These products include portable hand-held detectors and survey equipment, full body monitors, and portal monitors. Pictured at right is a synOdys survey meter, used to monitor radioactivity on various surfaces.

The company provides services for all of its product lines including repair, calibration, maintenance, spare parts, and training.

In the past, demand for electronic dosimeters has been tied to the needs of nuclear facilities. This is still a thriving market for the company, which has a significant share of an estimated $60-plus million world market and generates a significant base level of recurring revenue from annual parts replacement and calibration services. In addition, U.S. and European military forces have increased their purchases of dosimeters and now constitute a large portion of the company's dosimeter sales. Dosimeters for field troops are equipped with a technology that can measure the magnitude of a nuclear flash in the event of a bomb explosion and are subjected to rugged use. Although the company has captured a substantial portion of the market for military sales, supplying nearly every NATO army, it has only begun to penetrate the U.S. military. Growth is also expected from Eastern European countries as they are integrated into NATO, as well as from the Middle East and Asia.

There is also a significant potential demand for dosimeters to defend against the threat of "dirty bombs" and nuclear weapons. Governments in the U.S. and abroad have allocated significant funds to homeland security, much of which is going to front-line detection. This presents an important opportunity for synOdys, the current worldwide market leader in dosimetry and the clear choice of the military market.

The world RMS market, currently estimated at about $80 million annually, is also expected to generate opportunities. Nearly 300 of the 438 currently operating nuclear power plants were built in the 1970s and early 1980s. The RMS components in these plants are reaching the end of their useful lives and will require replacement with systems that utilize new digital technology and integrated software systems. As a result, these projects have substantially higher associated revenues than simple component change-outs. The company's technological leadership and substantial installed base position it to capture much of this business.

Synodys is also positioned to capitalize on the medical market. This area is expected to grow with the increasing enforcement of radiation regulations in medical and research environments.

With its experienced leadership, front-line position and plentiful opportunities to service the growing needs of its nuclear, defense and research markets, synOdys is poised to remain a market leader.