Cheshire Distributors, Inc. Announces Letter of Intent to Merge with Linsang Manufacturing, Inc.

Business Editors/High-Tech Writers

NEW YORK--(BUSINESS WIRE)--May 9, 2003

Cheshire Distributors, Inc. announced today that it has entered into an agreement to effect a merger with Linsang Manufacturing, Inc. (LMI) of Beltsville, Maryland, an electronic manufacturing services (EMS) company.

The merger will be completed pursuant to the terms of the agreement which, among other things, contemplates that Cheshire will effect a reverse stock split, resulting in approximately one million Cheshire common shares outstanding, and enter into an accounts receivable financing arrangement.

Pursuant to the merger, a subsidiary of Cheshire will merge with and into LMI, with LMI becoming a wholly-owned subsidiary of Cheshire. Upon completion of the merger, the current owners of LMI will own approximately 85% of the outstanding stock of Cheshire, which will change its name to LMIC, Inc.

There can be no assurance that this transaction will be completed. Cheshire has retained Keating Investments, LLC as its financial advisor with respect to the transaction.

"We are very excited about this merger opportunity with Linsang Manufacturing, Inc.", said Abe Grossman, President of Cheshire Distributors. "We are proud to have the benefit of Luis Negrete's leadership. He is an experienced executive with an outstanding track record."

"We believe this transaction presents a tremendous opportunity for growth and enhancement of our competitive position. The robust trend towards outsourcing in today's market, coupled with this new relationship, will create exciting potential to increase shareholder value," said Luis Negrete, President of LMI. "Since LMI's inception in January 2000, our professional team has been built to respond to steep sequential growth. From our ISO-9001 certified quality systems and our design services focused on increased manufacturing efficiency and reduced manufacturing costs to our post-production field support, we believe we are poised to capitalize on the opportunities our strategic markets represent for our shareholders, our associates, and the customers we serve."

LMI currently operates a state-of-the-art manufacturing facility in Beltsville, Maryland, strategically located between Baltimore and Washington, DC. LMI provides electronic manufacturing services to established and emerging original equipment manufacturers (OEMs) in the networking and telecommunications, wireless, high-end computer, and industrial and medical instrumentation markets.

Among other things, LMI manufactures components for complex life support systems in compliance with highly regulated quality requirements of the medical instrumentation industry. LMI is one of only five ISO-9001 certified EMS providers in its region. Customers include private sector firms as well as The Department of Defense, Office of Homeland Security and other federal entities.

Over thirty percent of LMI's current customer base is through federal contracting vehicles.

LMI provides design services, complex printed circuit board assembly utilizing advanced surface mount technology, electromechanical subassembly, total system assembly and integration, component and system test, as well as other value added services.

LMI provides these services in the context of an integrated information environment that enables comprehensive data collection and full traceability from design through manufacturing through deployment and upgrade in the field.

Certain of the above statements contained in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties. Cheshire has no duty and undertakes no obligation to update such statements.