NEWS BULLETIN
RE: NN Inc.
FROM: 800 Tennessee Road
The Financial Relations Board Erwin, TN 37650
BSMG WORLDWIDE Nasdaq: NNBR
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FOR FURTHER INFORMATION:
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
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Will Kelly Julie Tu and Maura Gedid
Treasurer & Manager of Investor Relations (General info)
(423) 743-9151 212-661-8030
FOR IMMEDIATE RELEASE
August 1, 2000
NN INC., SKF, & FAG KUGELFISCHER START
EUROBALL JOINT VENTURE FOR BALL MANUFACTURING
ERWIN, TENNESSEE/SCHWEINFURT/GOTEBORG - AUGUST 1, 2000 - NN Inc. (Nasdaq: NNBR),
Erwin/USA; SKF, Goteborg/Sweden; and FAG Kugelfischer Georg Schafer AG,
Schweinfurt/Germany; today announced that they have finalized their previously
announced agreement to form a jointly owned stand-alone company in Europe - NN
Euroball ApS.
The new company has acquired ball factories located in Pinerolo, Italy (SKF),
Eltmann, Germany (FAG) and Kilkenny, Ireland (NN Inc.) with approximately 700
employees and yearly sales of approximately 95 million euro. The company will
manufacture and sell high precision chrome steel balls used for ball bearings
and other products, and expects that the economy of scale achieved will enhance
competitiveness in both cost and quality.
According to the terms of the agreement, NN Inc. will own 54 percent of the
shares in the new company, and SKF and FAG will each own 23 percent. Financing
for the transaction was provided by HypoVereinsbank Luxembourg S.A. as agent for
Bayerische Hypo-und Vereinsbank AG of Munich, Germany. Acquisition financing of
approximately 31.5 Million Euro was drawn at closing, and the credit facility
provides for additional working capital and capital expenditure financing.
Roderick R. Baty, President & CEO, said, "We are delighted to conclude the
formation of Euroball. The new company provides NN with a unique opportunity to
expand our customer relationships and serve our worldwide bearing customers. We
look forward to working with our new employees at the Eltmann, Germany and
Pinerolo, Italy operations."
NN Inc.
Page 2
NN Inc. is a leading manufacturer and supplier of precision steel balls to
bearing manufacturers and had sales of US $85.3 million in 1999. SKF, Sweden, is
the world's largest bearing company with sales of SEK 36.7 billion in 1999. FAG
Kugelfischer, Germany is one of the largest European bearing manufacturers with
sales of DEM 3.7 billion in 1999.
FOR MORE INFORMATION ON NN INC., AT NO COST VIA FACSIMILE,
PLEASE CALL 1-800-PRO-INFO, AND ENTER CODE #094 , OR STOCK TICKER SYMBOL -
NNBR
With the exception of the historical information contained in the release, the
matters described herein contain forward-looking statements that are 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 Form 10-Q for the period ended March 31, 2000
and the Company's Annual Report on 10-K for the fiscal year ended December 31,
1999.
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