Actuant Annuounces Additional Convertible Top Orders

    MILWAUKEE--Dec. 11, 2002--Actuant Corporation announced today several new developments in its convertible top product line. Actuant's Power-Packer business unit was awarded two new programs during the first quarter including the Chevrolet Corvette with Car Top Systems (CTS) and one other program whose name is confidential based on the customer's request. Combined, these two programs will incrementally add about 19,000 systems per year by the 2006 model year. Robert C. Arzbaecher, President and CEO of Actuant commented, "These programs represent the continuation of a trend in the automobile industry that started in 1999. Worldwide acceptance of convertibles is accelerating at a rapid rate, with most global automotive manufacturers introducing additional models over the next three or four model years. With these new program wins, we feel even more confident that Actuant's convertible top actuation sales will double by the 2006 model year from the fiscal 2002 sales level of approximately $45 million." Actuant is the leading producer of hydraulic actuation and latching systems for both soft-top and retractable hard top convertibles, using patented high-pressure pump technology.
    In a separate matter, Actuant reported that it will be recording a pre-tax charge of $7.3 million, $4.7 million net of tax or $0.39 per diluted share, in the first quarter relating to business units previously divested. Commenting on this charge, Andrew Lampereur, CFO of Actuant stated, "We have had very recent adverse developments related to litigation matters associated with businesses divested prior to the spin-off of APW Ltd. in July of 2000. In each case, Actuant retained indemnification risk for these matters. While we are clearly disappointed with these developments, they do not relate to any of our continuing businesses. Favorable cash flow initiatives at our recent Kopp acquisition will more than offset the negative cash flow impact of these litigation matters, which we expect to be resolved and funded during fiscal 2003."
    Finally, Actuant reported that it recently repurchased an additional $3 million principal of its 13% Senior Subordinated Notes (the "13% Notes"). The $3 million repurchase is in addition to the approximate $7 million of 13% Notes it previously announced it had acquired in September 2002. Since commencing the repurchase of the 13% Notes on the open market last summer, Actuant has completed the repurchase of approximately $20 million of principal of its 13% Notes, leaving an approximate balance of $110 million outstanding at November 30, 2002. The Company will be recording a charge to first quarter earnings of $2.0 million, $1.3 million after-tax or $0.10 per diluted share, related to all of the 13% Notes it repurchased during the first quarter. Such charge includes both the premium to repurchase the 13% Notes and a pro rata write-off of debt issuance costs and initial issuance discounts dating back to the initial issuance of the 13% Notes on July 31, 2000.

    Safe Harbor Statement

    Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these projections are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are subject to general economic conditions, variation in demand from automotive customers, continued market acceptance of automobiles equipped with convertible tops, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, and foreign currency fluctuations. See the Company's registration statements filed with the Securities and Exchange Commission for further information regarding risk factors.

    About Actuant

    Actuant, headquartered in Milwaukee, Wisconsin, is a diversified industrial company with operations in over 20 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools. Products are offered under such established brand names as Enerpac, Gardner Bender, Kopp, Milwaukee Cylinder, Nielsen Sessions, Power-Packer, and Power Gear.
    For further information on Actuant and its business units, visit the Company's website at www.actuant.com.