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T.J.T., Inc. Reports Unsolicited Tender Offer

12 October 1998

T.J.T., Inc. Reports Unsolicited Tender Offer Sharply Below Current Market Value


    EMMETT, Idaho--Oct. 9, 1998--T.J.T., Inc. (Nasdaq SmallCap:AXLE), a supplier of recycled axles and inspected tires to the manufactured housing industry, today reported that it has become aware of an unsolicited tender offer by IG Holdings to purchase up to 4.9 percent of T.J.T.'s shares of outstanding common stock at a sharp discount to current market value.
    Based on information obtained by the company, it appears that IG Holdings made a tender offer for T.J.T.'s shares at a price of $0.47 per share, less transfer fees, on October 2, 1998. The closing price of T.J.T. stock on the Nasdaq SmallCap Market on October 2, 1998 was $1.16 or approximately 2.5 times the tender offer price. On October 8, 1998, the closing price was $1.13.
    "IG Holdings is not affiliated with T.J.T in any way and did not contact the company prior to the tender offer," said Terrence Sheldon, president and chief executive officer. "We learned of the offer from shareholders being solicited." Sheldon said that T.J.T. has no other information regarding the identity of IG Holdings.
    For the nine months ended June 30, 1998, T.J.T. had revenue of $24.5 million, up 47 percent from the same period in 1997 while earnings per share were $0.08 compared to $0.05 in the 1997 nine months. In addition, Sheldon noted that T.J.T. has no long-term debt and 10 consecutive years of profitability. Currently, the company has approximately 4.9 million shares outstanding.
    Established in 1977, T.J.T. is a major provider of recycled axles and inspected tires to the manufactured housing industry and has recycling operations in Idaho, Oregon, Washington, California and Colorado. In addition to effectively recycling these serviceable steel and rubber products, the company also sells aftermarket accessories to the manufactured housing industry and vinyl siding to the housing industry.