Global-Tech Appliances Appoints Ernst & Young as Independent Auditor.Business Editors HONG KONG--(BUSINESS WIRE)--Dec. 30, 2002 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 approved the appointment of Ernst & Young in 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. as the Company's independent auditors, subject to the completion of Ernst & Young's standard client acceptance process. Ernst & Young will replace PricewaterhouseCoopers in Hong Kong as the Company's independent auditors for the fiscal year ending March 31, 2003. The appointment of Ernst & Young was based on the recommendation of the Company's Audit Committee, which conducted a comprehensive review of alternatives regarding the firm that would conduct the Company's independent audit. "The decision to change auditors was made due to issues involving the merger of Arthur Andersen For the U.S. Supreme Court case commonly known as Arthur Andersen, see . Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms (the other four are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG), performing & Co. in Hong Kong with PricewaterhouseCoopers in Hong Kong and does not reflect any adverse position towards the firm's service to the Company," said John C.K. Sham, President and Chief Executive Officer of Global-Tech. "The appointment of Ernst & Young reflects that firm's extensive experience in servicing companies similar to Global-Tech and the depth of resources that are available primarily in Hong Kong to service our account." Global-Tech is a designer, manufacturer, and marketer of a wide range of small household appliances in four primary product categories: kitchen appliances; garment care products; travel products and accessories; and floor care products. The Company's products are marketed by its customers under brand names such as Black & Decker(R), DeLonghi(R), Dirt Devil Dirt Devil is a brand name household vacuum cleaner. It is an icon and one of the best selling in the United States. There are two main units Power for large houses, and RV unit for smaller houses or apartments, as well as a number of other floor care products including hand-held (R), Eureka(R), Hamilton Beach(R), Krups(R), Morphy Richards Morphy Richards is a leading business firm located in the Swinton Meadows Industrial Estate, Swinton near Mexborough, South Yorkshire. It specialises in the manufacturing of toasters, hairdryers, bread makers, kettles and sandwich toasters and other appliances. (R), Mr. Coffee(R), Proctor-Silex(R), Sunbeam(R), and West Bend West Bend, industrial city (1990 pop. 23,916), seat of Washington co., E Wis., on the Milwaukee River; inc. 1885, consolidated with Barton in 1961. Tools and dies, plastics, machines, dairy items, and leather products are made there. A two-year branch of the Univ. (R). Except for historical information, certain statements contained herein are forward-looking statements 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, the financial condition of the Company's customers, product demand and market acceptance, the success of new product development, reliance on material customers and key strategic alliances, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its most recent Report on Form 20-F. |
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