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Blonder Tongue Signs Agreement on Initiative to Implement Manufacturing in China.


OLD BRIDGE, N.J. -- Blonder Tongue Laboratories, Inc. (AMEX AMEX

See: American Stock Exchange
: "BDR BDR Border
BDR Bangladesh Rifles (military forces in Bangladesh)
BDR Backup Designated Router (networking)
BDR Bombardier (artillery rank)
BDR Backup Disaster Recovery
") today announced that it has entered into a joint venture agreement with Master Gain International Industrial Limited, a Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov.  corporation to manufacture products in the People's Republic People's Republic
n.
A political organization founded and controlled by a national Communist party.
 of China. This joint venture is expected to decrease manufacturing costs and facilitate the Company's entry into the Asia Pacific cable market, while allowing the Company to maintain its engineering, research and development, manufacturing engineering Manufacturing engineering

Engineering activities involved in the creation and operation of the technical and economic processes that convert raw materials, energy, and purchased items into components for sale to other manufacturers or into end products for
, purchasing and quality control at the Company's corporate headquarters in Old Bridge, New Jersey. The joint venture is part of Blonder Tongue's continued effort to adapt to market trends and pressures in order to improve its long-term competitive position.

The Company estimates that over the next two years it will obtain cost savings of $4-5 million dollars, primarily due to reduced costs for labor and materials labor and materials (time and materials) n. what some builders or repair people contract to provide and be paid for, rather than a fixed price or a percentage of the costs. . Approximately $1 million of these estimated savings are expected during 2006. The actual costs and benefits, as well as the timing for implementation of this initiative are dependent on issues encountered during implementation, future business conditions, sales volumes, and regulatory requirements under the laws of the People's Republic of China, among other factors.

While the joint venture agreement contemplates the formation of several new entities, Blonder Tongue and Master Gain, will each own (directly or indirectly) a fifty percent (50%) interest in a new Chinese manufacturing company to be called Shenzhen China Blonder Tongue. Master Gain will contribute $5,850,000 to the joint venture. Blonder Tongue will contribute 1,000,000 shares of its common stock to the joint venture and will grant to Master Gain stock options to purchase up to 500,000 shares of Blonder Tongue's common stock. Both the shares issued to the joint venture as well as the options granted to Master Gain will be subject to certain restrictions and rights of cancellation.

The Company will grant the joint venture a license to use certain of the Company's technology and know-how to manufacture and sell certain of the Company's products, and an exclusive distributorship to sell certain products in the Asian, Southeast Asian, African, European, Middle Eastern and Australian markets. This arrangement will commence with less complex products being licensed and manufactured during the early stages of the joint venture and progress to the license, manufacture and sell more complex products over time, all of which will be managed from the Company's corporate offices.

It is also anticipated that the joint venture will acquire from third parties other technology, along with the rights to manufacture, market and sell products developed from these technologies. The joint venture will grant the Company an exclusive distributorship to sell such products in the North American North American

named after North America.


North American blastomycosis
see North American blastomycosis.

North American cattle tick
see boophilusannulatus.
, South American and Caribbean markets. The Company plans to expand its sales operation in order to increase its market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market
penetration - the act of entering into or through something; "the penetration of upper management by women"
 and leverage its exclusive distribution rights. The Company believes it will realize growth in sales through increased market share in its core area market, increased sales in the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. , and increased sales from new product lines and product line extensions Product line Extensions and Patient safety
In a world of product line extensions, there are many different products with similar names. Examples of these include oxycodone versus oxycontin (oycodone CR), buproprion vs buprion SR vs bruproprion XL, codeine versus codeine contin
. This projected growth in sales, coupled with anticipated reductions in manufacturing costs, are expected to result in higher gross margin and net profits.

Blonder Tongue President, Bob Palle stated, "This initiative is one part of a reinvention of Blonder Tongue. The joint venture is expected to reduce the Company's manufacturing costs and increase market share in the US cable market as well as open the Pacific Rim cable market." Palle added. "As we execute this manufacturing strategy, the overall company structure provides the cornerstone for our customers to continue receiving the outstanding product performance and quality that they expect from Blonder Tongue."

Founded in 1950, Blonder Tongue Laboratories is a leading U.S. designer, manufacturer, and supplier of a comprehensive line of broadband systems equipment and technical engineering services for Voice, Video and Data service providers. With Blonder Tongue's optimized technologies, simplified deployment and qualified technical assistance, the service provider reduces costs, increases customer satisfaction and increases profitability. For more information regarding Blonder Tongue or its products, please visit the Company's Web site at www.blondertongue.com or contact the Company directly at (732) 679-4000.

"Safe Harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
" Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995: The information set forth above includes "forward-looking" statements and accordingly, the cautionary statements contained in Blonder Tongue's Annual Report and Form 10-K/A for the year ended December 31, 2004 (See Item 1: Business and Item 7: Management's Discussion and Analysis Management's discussion and analysis (MD&A)

A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial
 of Financial Condition and Results of Operations and Risk Factors), and other filings with the Securities and Exchange Commission are incorporated herein by reference. The words "believe", "expect", "anticipate", "project", and similar expressions identify forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. Blonder Tongue undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Blonder Tongue's actual results may differ from the anticipated results or other expectations expressed in Blonder Tongue's "forward-looking" statements.
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Publication:Business Wire
Geographic Code:1USA
Date:Nov 11, 2005
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