FMIC is moving Guild Guitars into Tacoma''s Ovation and Hamer Guitar manufacturing facility

Scottsdale, AZ (January 31, 2008) -- Fender Musical Instruments Corporation (FMIC) is announcing that it will move production of Guild Guitars from Tacoma, Washington, to its newly acquired Ovation and Hamer Guitar manufacturing facility in New Hartford, Connecticut. The move will take place as a phased operational transfer, expected to be completed before the end of the year.

Guild Guitars

FMIC’s December acquisition of Connecticut-based Kaman Music Corporation also included the purchase of KMC’s Ovation and Hamer guitar brands and their manufacturing facility in New Hartford, Connecticut. The decision came as the result of an extensive review FMIC conducted to determine the best long-term home for Guild production. The final decision to relocate Guild to New Hartford was driven by FMIC’s desire to improve overall production processes, as well as meet the growing demand for Guild.

“We are committed to moving forward in a strong and focused way to ensure that Guild instruments continue to meet the highest standards of quality, affordability and accessibility for our consumers,” said Bill Mendello, Chairman and CEO of Fender Musical Instruments Corporation. “This decision will allow us to accomplish goals that we would otherwise not be able to meet in our Tacoma facility, while continuing our long-term commitment to manufacturing world-class guitars in the United States.” Select Tacoma brand guitar models will soon follow in the transition.

The approximately 70 Tacoma-based FMIC employees affected by the move will be provided with comprehensive assistance, including retention and severance packages, benefit continuation and outplacement services.

For more information: Guild or Fender.

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