Global-Tech Appliances Announces $5 Million Stock Buy Back.HONG KONG--(BUSINESS WIRE)--June 17, 1998--Global-Tech Appliances Inc. (NYSE NYSE See: New York Stock Exchange : GAI GAI General Applet Interface GAI Giustizia e Affari Interni (Italian) GAI Global-Tech Appliances Inc GAI Guild of Architectural Ironmongers GAI Global Atmospherics Inc GAI General Ability Index GAI Great American Insurance ) announced today that its Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase of up to $5 million of its shares of Common Stock. Purchases would be made from time to time in the open market, subject to general market and other conditions. The Company estimates that purchases would be made over a period of approximately six months. Shares acquired would be available for later issue upon the exercise of stock options and for other corporate purposes. John Sham, President and Chief Executive Officer, said: "The Company believes its shares represent an attractive investment for the Company, especially at its present market value. External forces, such as those affecting one of our customers, Sunbeam, and conditions in Asia are in large part responsible for the recent decline in our stock price. The stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program reflects management's confidence in the Company's long-term prospects and is being commenced tosupport our new public stockholders." Global-Tech is an original design manufacturer of a wide range of small household appliances in four primary product categories: kitchen appliances; personal, beauty and health care products; travel products and accessories; and garment care products. The Company designs and develops proprietary new products which it manufactures for well-known household appliance companies under brand names such as Hamilton Beach(R), Krups(R), Mr. Coffee(R), Proctor-Silex(R), Revlon(R), Sunbeam(R), and Vidal Sassoon Vidal Sassoon (born January 17, 1928) is a hairdresser. Sassoon was born to Jewish parents in London. His father was from Thessaloniki in northern Greece with Iraqi origins, and his mother, whose family was originally from Kiev, was born in London. (R). Except for historical information, certain statements contained herein are 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. that are made pursuant to the 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. provisions of 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. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its Registration Statement on Form F-1 which was declared effective on April 8, 1998.
CONTACT: Global-Tech USA, Inc.
Brian Yuen,
tel: 212/683-3320
fax: 212/725-4880
or
Georgeson & Company
Peter Firestein
212/440-9889
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