[LOGO] HOLMES GROUP
NEWS RELEASE For Immediate Release:
Milford, Massachusetts - December 2, 2002
THE HOLMES GROUP ANNOUNCES THE EXPANSION
OF ITS PRESENCE IN THE FAR EAST
The Holmes Group, Inc. announced today the next phase of its continuing
efforts to enhance efficiencies by expanding its manufacturing capacity and
sourcing alliances globally.
As a result of this overseas expansion, the Company expects to close all of
its US manufacturing operations on January 31, 2003. The Company presently
employs approximately 800 people at the affected plants, which were part of the
Company's 1999 acquisition of The Rival Company. The affected plants are located
in Flowood, Mississippi, Sweet Springs, Missouri and Clinton, Missouri. A
Clinton, Missouri distribution and service center, which currently has
approximately 80 employees, will be phased out during 2003. The Company also
will close its Kansas City, Missouri administrative office and will transfer the
operations of its service center in Worcester, Massachusetts to its facility in
Milford, Massachusetts during the first half of 2003.
As a result of these changes, the Company expects to record non-recurring
restructuring charges of approximately $25 million pre-tax. The expected
restructuring amount includes approximately $18 million in non-cash charges
associated with asset impairments on redundant property and equipment, and
approximately $7 million of severance and other related cash charges. The
Company also expects to record approximately $10 to $12 million of inventory
losses related to these actions during the fourth quarter of 2002.
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World Headquarters: One Holmes Way, Milford, MA 01757
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[LOGO] HOLMES GROUP
NEWS RELEASE For Immediate Release:
Milford, Massachusetts - December 2, 2002
"We deeply value the hard work and dedication of our associates in these
facilities," commented Peter J. Martin, President and CEO. "We operate in an
extremely competitive, increasingly global industry that requires a constant
search for improved efficiencies. In business, there are difficult decisions
that need to be made."
"In expanding our global business, we have to continuously adjust our
manufacturing operations to support our growth. We are excited about the
expansion of our facilities and alliances in the Far East. These alliances will
help us gain further momentum in providing cutting edge technology in the
products we produce for many of our brands," said Martin.
The Holmes Group, Inc. is a fully integrated consumer products company,
headquartered in Milford, Massachusetts. The company has offices and
manufacturing facilities worldwide, and is a leading manufacturer of consumer
products for Home Environment, Kitchen, Lighting and Personal Comfort. With
well-known brands such as: Bionaire(R); Crock-Pot(R) Slow Cooker; FamilyCare(R);
Holmes(R); MASTERGLOW(R); Patton(R); Rival(R); and White Mountain(R), The Holmes
Group continuously develops, manufactures and distributes innovative, high
quality products to meet consumer demands.
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World Headquarters: One Holmes Way, Milford, MA 01757
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[LOGO] HOLMES GROUP
NEWS RELEASE For Immediate Release:
Milford, Massachusetts - December 2, 2002
This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities and
Exchange Act of 1934. The words "expect", "estimate", and other similar
expressions which do not relate solely to historical matters identify
forward-looking statements. Undue reliance should not be placed on
forward-looking statements because they involve known and unknown risks and
uncertainties which may cause actual results to differ materially from
anticipated, projected or implied future results. Factors that may cause such a
difference are discussed in the Company's reports filed with the Securities and
Exchange Commission and the exhibits thereto. The Company disclaims any
responsibility to update these statements.
For further information please contact: Kelly J. Lockwood
Vice President of Global
Communications & Design
ph: 508-422-1554 fax: 508-422-1672
email: kjlockwood@theholmesgroup.com
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World Headquarters: One Holmes Way, Milford, MA 01757
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