BIC Group to Acquire the Operations of Norwood Promotional Products, the Second Largest Supplier of Non-Apparel Customized Promotional Products in the United States

Regulatory News:

BIC Group (Paris:BB) today announces that a subsidiary of BIC USA has received court approval to acquire substantially all of the assets of Norwood Promotional Products in an auction conducted in Norwood’s pending bankruptcy cases.

Total consideration for the acquisition is 125 million USD plus approximately 37.5 million USD in assumed liabilities.

On May 5, 2009, Norwood Promotional Products filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware, and the Bankruptcy Court has authorized Norwood to sell its assets to the party making the highest or otherwise best offer at an auction. On June 18, 2009, a subsidiary of BIC USA was named the winning bidder at that auction.

The closing is expected by July 15, 2009, pending merger control clearance in the U.S.

Norwood Promotional Products is the second largest supplier of non-apparel promotional products in the US

Norwood Promotional Products has leadership positions in calendars, bags, awards, drinkware and other promotional goods. It benefits from a broad market penetration into the U.S. promotional products distribution channel. Norwood Promotional Products 2008 net sales were over 300 million USD.

The Advertising and Promotional Products industry

The promotional products business is a growth yet cyclical, profitable and low CAPEX industry and is a major player among advertising vehicles. It is a very fragmented industry at all levels, with a large number of suppliers, distributors and end users. It is a highly diverse product category, with approximately 20 segments, most of them representing less than 10% of the total market.

In the United States, which represents approximately 60% of the worldwide market, the industry has registered significant historical growth, increasing at an 8% CAGR since 1988. Today the promotional products industry is strongly impacted by the current economic downturn. As the economy recovers, so will this industry.

Significant enhancement of BIC Group’s historical Promotional Products activity

Through its BIC Graphic business, BIC has been involved in Promotional Products since 1969, mainly in writing instruments, and is recognized for its excellence in customer service, imprinting quality and delivery. After the purchase of Antalis Promotional Products (APP) in Europe in March 2009, this proposed acquisition would strengthen BIC’s position as a leading worldwide promotional products supplier, with the N°1 position in the USA and N° 2 in Europe in non-apparel. It would provide synergies between Norwood Promotional Products, BIC Graphic and APP in Europe.

By the end of 2009, with the addition of Norwood, the Promotional Products category would represent approximately 25% of BIC Group’s total consolidated sales. In 2010, it would be reported as a standalone category, in addition to the Stationery Consumer, Lighter and Shaver categories. This acquisition would be EPS accretive from 2011.

Bruno Bich, Chairman of the Board said: "We are investing in an industry in which we have been active and successful for the last 40 years and of which we have a deep knowledge. We have proven experienced management, strong and trustful relationships with the distributors and we understand the end-users’ demands.”

Mario Guevara, Chief Executive Officer added: "The complementarities of BIC Graphic, Antalis Promotional Products and Norwood will definitely give us, in addition to the size, the opportunity to lead the growth of this industry when it recovers and therefore create shareholder value.”

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This document contains forward-looking statements. Although BIC believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties.

A description of the risks borne by BIC appears in section "Risks and Opportunities” of BIC "Reference Document” filed with the French financial markets authority (AMF) on 31 March 2009

A presentation related to this announcement is available on BIC web site: www.bicworld.com, headline Investor Relations

2009 Agenda

About BIC

BIC is a world leader in stationery, lighters and shavers. For more than 50 years, BIC has honored the tradition of providing high-quality, affordable products to consumers everywhere. Through this unwavering dedication, BIC has become one of the most recognized brands in the world. BIC products are sold in more than 160 countries around the world. In 2008, BIC recorded net sales of 1,420.9 million euros. The Company is listed on "Euronext Paris”, the SBF120 and CAC Mid 100 indexes. BIC is also part of the following SRI indexes: FTSE4Good Europe, ASPI Eurozone and Ethibel Excellence Europe.

For more information, please consult the corporate web site: www.bicworld.com