WESTPORT, Conn., May 9 /PRNewswire-FirstCall/ -- Compass DiversifiedHoldings (Nasdaq: CODI) announced today that its wholly owned subsidiary,Compass Group Diversified Holdings LLC (the 'Company') has entered into adefinitive agreement for the sale of its majority owned subsidiary, SilvueTechnologies Group, Inc. ('Silvue'), to Mitsui Chemicals, Inc. for a totalenterprise value of approximately $95 million.

Upon the closing of the transaction, it is anticipated that the Companywill receive approximately $70 million of the total enterprise value, afterpayment to minority shareholders and payment of all transaction expenses, inrespect of its debt and equity interests in Silvue. Proceeds primarily will beused to repay debt under the Company's credit facility. Availability underthis credit facility enables the Company to pursue additional platform andadd-on acquisitions and provides working capital capacity for the Company andits subsidiaries.

Silvue was acquired on May 16, 2006, utilizing proceeds from CODI'sinitial public offering. The transaction is subject to satisfaction of theclosing conditions set forth in the stock purchase agreement. Upon the closingof the transaction, it is anticipated that the divestiture will create a gainof between $37.5 million and $40.0 million.

With respect to the transaction, I. Joseph Massoud, CODI's CEO, said, 'Weare extremely pleased to announce the sale of our Silvue business at a pricethat is reflective of the exceptional quality of its assets, management andstaff. We consider the opportunity to divest our interest in Silvue at thisvalue to be extremely attractive for our shareholders, and are excited to haveachieved a substantial gain on our ownership of this business. We are gratefulfor the opportunity to have worked with Silvue and its employees over theyears and wish them continued success under their new ownership.

'In February of 2007, we sold our subsidiary, Crosman AcquisitionCorporation. As with the sale of Crosman, it is expected that the sale ofSilvue will result in the recognition of a substantial gain to CODIshareholders. We believe these two transactions are evidence of thesubstantial embedded value that exists within CODI's family of subsidiarybusinesses.'

Additional information on the sale transaction will be available on theCompany's Form 8-K that will be filed with the Securities and ExchangeCommission on or before May 12, 2008. It is expected that the transaction willclose on or before September 19, 2008. Investment bank, B.