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Mag Instrument, Inc. Plans World-Class Manufacturing Facility to Employ 2,400, Generate $1 Billion in Economic Stimulus

Contact: Anne DeWolfe or Roger Gillott Sitrick And Company 310-788-2850

ONTARlO, Calif., August 25, 2004-Mag Instrument, Inc., maker of MagliteĀ® flashlights, the world’s leading premium flashlights, today announced plans to build a 700,000-square-foot manufacturing facility on a 30 acre parcel in Ontario that will consolidate more than 800 jobs, create 1,600 new jobs and generate more than $1 billion per year in economic stimulus. The new facility will bring Mag Instrument’s total employment in Ontario to approximately 2,400.

The new facility will allow for continued company growth, introduction of new product lines and establishment of new manufacturing processes. Mag Instrument expects to be able to control its manufacturing processes thereby ensuring the outstanding product quality for which Mag is known, and also to keep manufacturing costs competitive.

“Job creation is vital if California is to enhance its image as the Golden State, and we are proud to be doing our part. This facility reaffirms our belief that, by working together, we can assure that the state’s best days are ahead of it,” said Mag Instrument founder Tony Maglica.

Mag Instrument, which is privately held, currently operates a 500,000-square-foot facility in Ontario, in San Bernardino County, and employs about 800 workers in California.

While grading and other site preparation activities have already started, actual construction of the new manufacturing facility is expected to begin in September with completion in 2005. It is expected to be fully operational and to reach its full economic impact within two to three years, as production ramps up and new products and manufacturing processes are added.

”Wages earned and spent by both the new and existing workers will have a positive ripple effect on the region’s economy,” Mr. Maglica said.

Using standard economic multipliers that gauge economic impact of job creation, every Mag Instrument worker will directly support approximately one other job in the local economy, and these in turn will support other workers. By the time the facility is fully staffed and operational, its combined economic contribution to Southern California and the U.S. is expected to be more than $1 billion per year.

This includes more than $260 million in purchases of goods and services per year due to expanded product lines, new manufacturing processes and continued research and development. The new facility also is expected to generate up to $80 million in new capital investment on property, plant and equipment over the next few years.

The company’s MagliteĀ® flashlights -long a favorite of public safety workers as well as the general public because of their high quality and rugged durability – have become an American manufacturing icon since they were introduced in the late 1970s. Today, they are sold in more than 85 countries.

The success of Mag Instrument can be attributed to the design and focus on quality which reflects the insistence on craftsmanship by Mr. Maglica who, although born in New York City, was raised in Croatia and trained as a machinist. In 1955, five years after immigrating to the United States, he managed to scrape together $125 and began his own business – a one-lathe job shop in a Los Angeles garage supplying precision machine tools to industry, including aerospace and the military. Mr. Maglica adds that, “The company’s products have an unsurpassed reputation for quality and reliability, and all of our employees reflect pride in the company and the products we produce.”

Mr. Maglica has refused to outsource his company’s manufacturing overseas in search of cheap labor and lax environmental standards. He has remained committed to the belief that American manufacturers can compete effectively in the global marketplace by using technology to improve quality and reduce costs.

The company also has nurtured deep roots in the community through such worthy causes as the American Red Cross, the National Law Enforcement Officer’s Memorial Fund, the National Fallen Firefighters Foundation, the City ofHope, and the Children’s Miracle Network.

2004 – Mag Instrument Plans World-Class Manufacturing Facility (PRESS RELEASE)