BSH Home Appliances Corporation Ponders Future of California Manufacturing Operations; Associates and Bargaining Unit Representatives Notified.

Business Editors

HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--July 11, 2003

Citing a sustained downturn in its Thermador oven business, evidenced by disappointing levels of new orders, BSH Home Appliances Corporation president and CEO Franz J. Bosshard announced today that the company is considering the closure of its manufacturing facility in Vernon, California.

"Consistent with our strategic initiatives announced last year, specifically product leadership and operational excellence, strengthening the Thermador product line by increasing its value to the consumer and to the company compel us to consider all options. We must improve the Thermador built-in oven business to a level of profitability commensurate with that of our other businesses," said Bosshard.

"The closure of our Vernon facility, and the transfer of Thermador oven production to other BSH manufacturing facilities in the U.S., would result in significant cost savings," according to Bosshard. Thermador products, including ranges, cook tops and ventilation products, are manufactured also at BSH plants in LaFollette, Tennessee and New Bern, North Carolina.

In July of 2001, BSH Home Appliances Corporation announced a major expansion program aimed at increasing BSH's share of the North American home appliance market. Those expansion plans are continuing.

"Before making a decision on the future of the Vernon plant, however, we have offered to meet with representatives of bargaining unit employees to discuss the business and the impact a decision to close the Vernon facility might have on them," Bosshard said. Discussions are expected to begin soon.

BSH acquired the Thermador Vernon plant in 1998 from Masco and has operated the plant for the past five years. It currently employs approximately 220 workers at the facility. Of these approximately 150 are skilled hourly workers and the remaining 70 associates are management and support staff. Stefan Lauwitz, Vice President of Operations, manages the day-to-day operations of the plant.

"The company is proud of the men and women who have built the Thermador brand. Consistent with the company's values and operating principles, BSH is committed to treating everyone with dignity and respect, and will strive to keep them informed in a timely manner about decisions that may impact their jobs," according to Lauwitz. "No decision to close the plant has been made yet," Lauwitz added.

BSH Home Appliances Corporation is a wholly owned subsidiary of Bosch und Siemens Hausgerate GmbH, headquartered in Munich, Germany. BSH Home Appliances Corporation manufactures and markets small and major home appliances under the Thermador, Bosch and Gaggenau brands throughout North America. Manufacturing facilities are located in Vernon, California, New Bern, North Carolina, and LaFollette, Tennessee.