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Fairview, PA, October 31, 2005 -----Spectrum Control, Inc. (NASDAQ: SPEC), a leading designer and manufacturer of electronic control products and systems, announced today that it has acquired all of the outstanding common stock of JDK Controls, Inc. ("JDK"). JDK, based in Grass Valley, California, is a designer and manufacturer of precision co-molded conductive plastic potentiometers and assemblies. The total purchase price of the acquisition, including the payoff of certain JDK indebtedness, was $4.1 million. The purchase price was entirely funded with Spectrum Control's available cash reserves.
Dick Southworth, Spectrum Control's President and Chief Executive Officer, commented, "With this acquisition, our fourth in the last 20 months, we continue to execute our strategic plan of product expansion and market diversification. Potentiometers (electro-mechanical control devices, converting rotary or linear motion) represent a new product area for us with expanded market opportunities. In addition to aerospace and military markets, JDK's products also serve various commercial markets which comprise approximately 40% of JDK's total annual sales. Major applications for JDK products include medical and meteorological instruments, animatronics and robotics, aircraft flap position actuators, cockpit instrumentation, missile programs, military vehicles, fighter aircraft, security camera positioning controls, and various automotive controls. These products and applications will provide the base upon which we will build our new Sensors and Controls business segment. We believe this new business is a natural complement and extension of our existing three business segments of Signal and Power Integrity Products, RF and Microwave Components and Systems, and Power Management Systems. Based upon current market conditions and customer order rates, we expect JDK product sales to be approximately $8 million during the next twelve months," he concluded. |