RE: NN, Inc.
2000 Waters Edge Drive
Johnson City, TN 37604
FOR FURTHER INFORMATION:
AT THE COMPANY AT FRB|WEBER SHANDWICK
Will Kelly Kerry Thalheim Susan Garland
Treasurer & Manager of Investor Relations (General info) (Analyst info)
(423) 743-9151 212-445-8437 212-445-8458
FOR IMMEDIATE RELEASE
May 2, 2003
NN, INC. PURCHASES SKF'S INTEREST IN NN EUROBALL
Johnson City, Tenn., May 2, 2003 - NN, Inc. (Nasdaq: NNBR) today announced the
purchase of SKF Group's (SKF) 23% interest in NN Euroball ApS (NN Euroball), a
joint venture company formed in July 2000 among NN, Inc., SKF Group and INA/FAG.
With the purchase of SKF's 23% interest combined with the previously announced
purchase of INA/FAG's 23% ownership on December 20, 2002, NN, Inc. now owns 100%
of NN Euroball. The Company is financing the purchase price of 13.8 million Euro
under a new syndicated credit facility.
Roderick R. Baty, Chairman and Chief Executive Officer, stated, "This concludes
the joint ownership phase of the original outsourcing transaction. Importantly,
the historical performance of NN Euroball has provided SKF the necessary
confidence to exit their ownership interest in the venture. We believe their
confidence is well founded on the basis of NN Euroball's ability to continue to
serve their long-term precision ball needs. We look forward to a continuing
long-term supply relationship with our original partners and customers in this
venture. We anticipate the transaction to add approximately $0.04 per share to
earnings for the balance of 2003."
NN Euroball was formed as a joint venture company in Europe to manufacture and
supply precision steel balls used in finished bearings. NN Euroball's operations
are comprised of manufacturing facilities in Kilkenny, Ireland, Eltmann, Germany
and Pinerolo, Italy. Under the original shareholder agreement, SKF Group and
INA/FAG had the right to sell to NN, Inc. their respective ownership interests
in NN Euroball beginning on January 1, 2003.
NN, Inc. manufactures and supplies high precision bearing components consisting
of balls, rollers, seals, and retainers for leading bearing manufacturers on a
global basis. In addition, the Company manufactures a variety of other plastic
components. NN, Inc. had sales of US $193 million in 2002.
The statement concerning additional earnings per share from this transaction is
a forward-looking statement and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve a number of risks and uncertainties that may cause actual results to be
materially different from such forward-looking statements. Such factors include,
among others, general economic conditions and economic conditions in the
industrial sector, competitive influences, risks that current customers will
commence or increase captive production, risks of capacity underutilization,
quality issues, availability of raw materials, currency and other risks
associated with international trade, the Company's dependence on certain major
customers, and other risk factors and cautionary statements listed from time to
time in the Company's periodic reports filed with the Securities and Exchange
Commission, including, but not limited to, the Company's Annual Report on 10-K
for the fiscal year ended December 31, 2001.
