NAUGATUCK, Conn.--(BUSINESS WIRE)--Sept. 28, 2006--The Eastern
Company (AMEX-EML) announced today a three-for-two stock split of the
Company's common shares, pursuant to the authority delegated to the
President of the Company by a resolution of the board of directors of
the Company at a meeting held on April 26, 2006.
Leonard F. Leganza, Eastern's president and chief executive
officer stated, "This action reaffirms our confidence in the future
operating results and cash flow of the Company, as well as our
long-term goal of building shareholder value. We believe the stock
split will bring the value of Eastern's shares to an attractive level
for individual investors, as well as improve our liquidity and create
a broader shareholder base for the Company. The three-for-two stock
split will increase the number of outstanding Eastern common shares
from approximately 3.6 million to approximately 5.5 million."
As a result of the stock split, shareholders of record on October
10, 2006 will be entitled to receive one additional share for every
two shares they own on that date. The Company will arrange for
issuance of these shares on October 17, 2006. Any fractional shares
created as a result of this split will be paid by cash. The date on
which the shares will begin trading at the split price is October 18,
2006. Eastern's common stock purchase rights under its Rights
Agreement dated August 21, 1998, will also be appropriately adjusted
to reflect the stock split.
The Eastern Company is a 148-year-old manufacturer of industrial
hardware, security products and metal castings. It operates from nine
locations in the U.S., Canada, Mexico, Taiwan and China. The diversity
of the Company's products helps it to respond to the changing
requirements of a broad array of markets.
Forward-Looking Statements: Information in this news release
contains statements which reflect the Company's current expectations
regarding its future operating performance and achievements. Actual
results may differ due to the many economic uncertainties that affect
the Company's business environment. Further information about the
potential factors which could affect the Company's financial results
are included in the Company's reports and filings with the Securities
and Exchange Commission. The Company is not obligated to update or
revise the aforementioned statements for those new developments.
The Eastern Company
Leonard F. Leganza or
John L. Sullivan III,
SOURCE: The Eastern Company