Cadet Manufacturing Company Recalls In-Wall Electric Heaters in Cooperation with Consumer Product Safety Commission.

Business Editors, High-Tech Writers

VANCOUVER, Wash.--(BUSINESS WIRE)--Feb. 17, 2000

Cadet Manufacturing Company announced in a news conference today that it is recalling approximately 1.9 million electric in-wall heaters in cooperation with the Consumer Product Safety Commission (CPSC).

The recall affects Cadet and Encore brand models FW, FX, LX, TK, ZA, Z, RA, RK, RLX, RX, and ZC. The majority of the heaters were sold in California, Idaho, Montana, Oregon and Washington.

Consumers will be able to purchase new replacement units from Cadet's Series 2000 line at significantly reduced prices. Details are available through Cadet's hotline, 800/567-2613, and website, www.cadetco.com. These are the only sources for more information and replacement order forms; the recall and replacement will not be handled by Cadet's retailers or distributors.

Of the 1.9 million heaters affected by the recall, Cadet estimates that 700,000 to 900,000 are still in use. None of the heaters in the recall are currently carried by Cadet dealers. Many of these heaters also were affected by a temperature limit switch recall in 1997. The current recall is different, and customers who participated in the 1997 recall are still affected.

Replacement Upgrade Program

The recall and replacement will be a factory direct program and will not be processed through Cadet retailers or distributors. To participate, customers need to complete and mail back a replacement order form. Customers may request forms through Cadet's hotline or website. In most cases, only the heatbox, or inner component, will be replaced; customers should keep their wall can and grill. It is not necessary to ship the recalled heatbox back to Cadet, but customers are asked to dispose of it. Recalled heaters will be replaced with the Cadet Series 2000, Cadet's safest heater to date. These heaters were designed to satisfy the CPSC consent agreement, exceed Underwriters Laboratory (UL) standards and lead the industry in safety features. In case of high temperature, an oversized limit switch is designed to turn off the heater, alerting the user of a potential problem. The user must correct the problem, commonly that the heater is blocked or needs to be cleaned, and manually reset the switch to resume operation. In addition, a back-up over-temperature protection device is designed to completely shut down the heater in case of severe overload or failure. Repair is needed to reset the heater.

The replacement program is available for 24 months, until Feb. 17, 2002. Cadet will provide replacement heaters on a first come, first served basis. Cadet has substantially increased production to manufacture enough heaters for the recall and hopes to fill most orders within several months.

&uot;We apologize for any inconvenience or frustration this causes our customers,&uot; says Cadet President Hutch Johnson. &uot;We are committed to managing the recall and providing replacement heaters as quickly as possible. The positive side of this unfortunate situation is that we have used the lessons learned to develop the new Cadet Series 2000. These heaters are the safest we have ever manufactured and we hope they will lead the entire industry to higher safety standards for all wall heaters.&uot;

While waiting for a replacement heater, owners of the recalled heaters should keep the heater clean and be sure furniture, drapes and other objects are at least three feet away from the heater. Customers with Z and ZC models should use an alternate heat source if available, or use the heater only when they are in the room. Additional information is available on Cadet's hotline, 800/567-2613, and website, www.cadetco.com.

Cadet has just emerged from Chapter 11 Bankruptcy filed as the result of the $3 million cost associated with the 1997 temperature limit switch recall. Cadet's financial position does not allow the company to offer replacement heaters free of charge. Cadet will offer them at a substantially reduced price, ranging from $25.26 to $56.76, including shipping, depending on the model, an average of 60 percent savings off the retail price.

Customers who already replaced a recalled heater between Oct. 23, 1997, and Feb. 17, 2000, may receive a refund of up to $25 per replaced unit, subject to the availability of funds in a special remediation fund at the end of the recall period on Feb. 17, 2002. Written verification of removal and replacement is required.

&uot;Cadet strongly encourages customers to take advantage of the replacement program,&uot; Johnson says. &uot;No other brand is UL approved for Cadet's wall cans. The new heatbox is easily installed directly into an existing wall can, which means no costly new construction is necessary.&uot;

Cadet Manufacturing Company was founded in 1957. One of a few remaining pioneers of the electric heating industry, Cadet remains an industry leader today. Cadet's product line includes fan forced heaters, radiant heaters, electric baseboard heaters, portable unit heaters, industrial heaters and thermostats. Cadet is based in Vancouver, Wash., and currently has 114 permanent and 30 temporary employees.

Editor's note: Cadet will hold news conferences Thursday, Feb. 17, in Seattle (9:30 a.m. PST) and Portland (2:30 pm PST) to provide details about the recall. Interviews, a complete media kit and b-roll footage are available at those conferences or by calling Jennifer Messenger, 503/223-3299, ext. 545.