FOR IMMEDIATE RELEASE Contact: Tony Cooper
December 29, 2003 260-479-3221
Fort Wayne, Indiana and Liberty Corner, New Jersey, USA: WFI Industries and Fedders Corporation (NYSE: FJC) announced they have entered into a strategic alliance to build water source heat pumps in China. Fedders will produce the units in China for sale by WFI Industries Ltd. in China and Korea under the WaterFurnace brand. WaterFurnace is the leading geothermal heat pump manufacturer in North America and Fedders Corporation is a leading global manufacturer of air treatment products, with fiscal 2003 sales of $422 million.
The products will be manufactured at Fedders Xinle Co., Ltd, in Ningbo, China, which is one of seven Fedders China factories. Fedders Xinle has a one-million-square-foot heating and air conditioning plant capable of producing a million units per year. The plant has been ISO 9001 certified and utilizes state of the art manufacturing processes and equipment.
Bruce Ritchey, CEO of WFI Industries, said, “This is an historic day for our company. We pride ourselves on being the leader in geothermal technology here in North America, but have not aggressively competed in the global market. This venture will give us the cost structure and critical mass to allow us to design and build products specifically for the emerging geothermal markets in China and Korea. This is good news for Fort Wayne. It means we will see an immediate increase in work for our engineering, manufacturing and training support people. It does not send local manufacturing jobs to China.”
James R. Shields, Chairman of WFI Industries, noted, “Fedders is a perfect partner for us. They have extensive manufacturing as well as international headquarters for engineering and manufacturing in China. They have the facilities, contacts and knowledge to build our type of product. This alliance will allow us to ramp up quickly to meet the growing international market demand. This agreement will not affect production in Fort Wayne, but will allow the company to compete in markets not previously available to it.”
Robert Laurent, Jr. Executive Vice President, Acquisitions and Alliances for Fedders, indicated that “Fedders is ideally situated with its infrastructure and manufacturing base in China, to partner with WFI Industries, the leader in geothermal technology, and through this alliance, to participate in this rapidly growing market.”
About the China Geothermal Market:
The new construction market in China is the largest in the world and growing rapidly.
Energy conservation and environmental protection are primary concerns, so the government
has mandated that all new buildings adopt renewable energy technologies.
Geothermal heating and cooling is one of the approved renewable energy technologies,
and provides promise for wide-scale use.
Uncertainties:
This press release contains certain forward-looking statements that may or may not be realized.
Investors should not rely solely on this information to make investment decisions.
More Information: WFI Global: Tony Cooper, President, 260-479-3221, tcooper@wfiglobal.com
Fedders: Michael Giordano, 908-604-8686, investorrelations@fedders.com
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