Garmin CEO and Family Trusts Adopt Rule 10b5-1 Stock Disposition Plans
CAYMAN ISLANDS, Dec. 5, 2006 -- Garmin Ltd. today announced that Dr Min H. Kao, the company's co-founder, Chairman and CEO, and two family trusts of which he is a trustee have established pre-arranged trading plans to sell a portion of their shares in the company over a designated period. The plans were adopted in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934.
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Rule 10b5-1 allows corporate officers and directors to adopt written, pre- arranged stock trading plans when they do not have material, non-public information. Such programs provide for regular selling of a predetermined, fixed number of company shares in order to gradually diversify the individual's investment portfolio, minimize the market effect of share sales by spreading them out over an extended period of time and avoid concerns about initiating transactions while in possession of material non-public information.
The maximum number of Garmin shares to be sold by Dr. Kao under his plan, beginning in December 2006 and ending in December 2007, is 319,200 shares, which represents the number of shares covered by Dr Kao's previous Rule 10b5-1 plan which were not sold under such plan.
The aggregate maximum number of Garmin shares to be sold by the two family trusts of which Dr. Kao is trustee, beginning in December 2006 and ending in December 2007, is 2,000,000 shares (1,000,000 shares by each trust).
The total number of shares to be sold by Dr. Kao and the two family trusts represents approximately 5 percent of the 46,572,180 Garmin shares currently owned by Dr. Kao, his wife and the two family trusts. Any transactions under the plans will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.
Dr. Kao and his family trusts adopted these plans as part of their long- term strategy for asset diversification and liquidity.
Through its operating subsidiaries, Garmin Ltd. designs and manufactures navigation, communication and information devices -- most of which are enabled by GPS technology. Garmin is a leader in the general aviation and consumer GPS markets and its products serve aviation, marine, outdoor recreation, automotive, wireless and OEM applications. Garmin Ltd. is incorporated in the Cayman Islands, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's virtual pressroom at http://www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin is a registered trademark of Garmin Ltd. or its subsidiaries.
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