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WSI Announces Agreement in Principle To Acquire Precision Machining

29 June 1999

WSI Industries Announces Agreement in Principle To Acquire Precision Machining Company

    LONG LAKE, Minn.--June 28, 1999--WSI Industries, Inc. today announced it has reached an agreement in principle, subject to various conditions, to purchase the stock of Bowman Tool and Machining, Inc. in Rochester, MN.
    Terms of the pending transaction were not disclosed, but the Company said it expects to complete this acquisition before its fiscal 1999 year-end on August 29.
    Michael J. Pudil, president and chief executive officer, said Bowman, which expects to post sales of approximately $8 million in calendar year 1999, has been engaged in the precision contract machining industry for more than 20 years. He said this transaction, if completed, would meet the Company's publicly stated goals of acquiring companies that will be immediately accretive to consolidated earnings and further diversify WSI's base of industries served. Pudil added that Bowman would be operated as a WSI subsidiary in its current manufacturing facility in Rochester.
    In February 1999, the Company acquired the stock of Taurus Numeric Tool, Inc., a specialized precision machining company serving the avionics and aerospace markets. With full-year 1998 sales of approximately $7.5 million, Taurus made a positive contribution to the Company's profitability in the third quarter of 1999 ended May 30.
    WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including agriculture, construction, aerospace and avionics, recreational vehicles and computers.

    The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company's ability to obtain additional manufacturing programs and retain current programs and other factors detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended August 30, 1998.