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STANTON ACQUIRES 
ASSETS OF CERWIN-VEGA


The Stanton Group has announced the purchase of the assets and brand name of Cerwin-Vega Inc.

Confirming the company's successful bid, Stanton President and CEO Gerard Cohen stated, "We are very excited about this opportunity to grow and expand our business portfolio. We feel that the strength and heritage of the Cerwin-Vega brand name will be a strong complement to our existing businesses and create synergies in the future.

"We also clearly recognize the value of the existing customer base and are committed to maintaining strong business partners going forward. Stanton will stand strong behind the Cerwin-Vega product and brand name."

Recognizing the difficulties Cerwin Vega had faced this past year - requiring them to solicit protection from creditors - the Stanton Group had become instinctively attracted to owning one of the greatest names in the speaker industry over the last 30 years, with the obvious synergies this would bring.

"Cerwin Vega's technology is perfectly complementary to the current audio lines owned by the Group - namely Stanton, Pickering and KRK," said Mr. Cohen. "The customer base is very much the same in the pro audio industry, with Cerwin Vega's primary markets being DJ's and musicians."

During the course of this year Cerwin Vega's management had already reduced the head count from 250-plus to around 80, and after completion the plans are to retain most of the existing staff. Although Gene Czerwinski, who founded the company in 1954, is expected to retire from the business, his support and advice will continue to be sought out and welcomed in the Company's new development program.

Cerwin Vega will continue operating from its main Simi Valley facility, with Stanton Group introducing new management, reporting directly to Mr. Cohen.

Cerwin Vega's blueprint will be to restore its distribution and reputation as one of the finest audio producers in the world, to keep the name integrity and to use all synergies between the other lines at Stanton Group to design, produce and distribute more efficiently, which may involve some changes in their sales network.

The Stanton Group's immediate aim is to continue addressing Cerwin Vega's core markets of professional sound, hi-fi, home cinema and car hi-fi - but it will review all business activities carefully before making any long-term decisions.

The Company will be examining all facets of the current operations including expanding its existing operation and manufacturing facilities to include other areas of the world. "The research of the right global partners is going to be one of our priorities," stated Mr. Cohen.

The acquisition is expected to bring a wealth of benefits to end users - including faster delivery, better back-up, and onsite service - as well as many new competitive products to be launched in 2002 and 2003.

Mr. Cohen states, "The aim is simply to return Cerwin Vega to profitability, to build the finest loudspeakers in their core markets and regain all market share lost over the last few years."

 

 

 
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