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Mile Marker International, Inc. Announces Major Corporate Restructuring

^{Published on 2008-12-05 14:55:37 - Market Wire}
 

POMPANO BEACH, Fla.--([ BUSINESS WIRE ])--Mile Marker International, Inc. ("the Company") (Pink Sheets:MMRK), a specialty vehicle parts manufacturer and distributor, today reported that it was implementing a substantial corporate restructuring, effective immediately.

The Company's Board of Directors approved a substantial restructuring plan for slimming down the Company's operations in order to achieve profitability in 2009. This restructuring plan includes substantial expense and staff reductions, including the resignation of the Company's President and Chief Executive Officer, Alvin Hirsch, and the resignations of Richard Aho, Alvin Hirsch, George Shelley and David Allsopp from the Company's Board of Directors effective December 5, 2008. The Company's remaining Board members will be Leslie Aho and Alexander Jowa, an outside director formerly with the Ford Motor Company.

The Board of Directors has appointed the Company's Senior Executive Vice President of Strategic Marketing, Robert Fernandez, as the Company's new President and Chief Executive Officer. The Board also appointed Leslie Aho as Executive Vice President and Chief Operating Officer and Joel Aho as Executive Vice President and Chief Financial Officer. In recognition of the Company's cost-cutting efforts and in the best interests of the Company and its shareholders, Richard Aho is terminating all legal actions against the Company and its directors. The Company is also in the process of negotiating a six month extension of its $2,125,000 principal amount 11% Senior Unsecured Subordinated Convertible Notes which matured on December 1, 2008, and anticipates the completion of this extension very shortly.

Alvin Hirsch stated: "We are fortunate in Robert Fernandez to have a uniquely experienced executive to lead the management of our Company. We face tremendous challenges with the economy and particularly the automotive sector struggling in recession. The painful actions we are taking are necessary for the Company to survive and prosper when the economy rebounds. The Company has substantial value not recognized by the market, including quality new products, unique patents, an excellent brand name and large military contracts."

Robert Fernandez stated: "I thank the Board for their confidence. Our challenges now and in 2009 parallel many other firms in the automotive aftermarket. We have developed a workable plan designed to get us through these tough economic conditions and be poised to prosper when things improve. Our dedicated U.S. and Chinese employees and great products will help us to return to profitability in the near term and allow us to build on our respected brand in the long term."

Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance.Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements.In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel and general economic conditions, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important risk factors that should be considered is contained in the Company's previous filings with the U.S. Securities and Exchange Commission.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.The Company does not intend to update any of the forward–looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.