The Eastern Company Anticipates Record Third Quarter

10/2/2000 2:23:00 PM

NAUGATUCK, Conn.--(BUSINESS WIRE)--Oct. 2, 2000--The Eastern Company (AMEX:EML) indicated today that it expects both sales and earnings to reflect record levels.

Commenting on the Company's third quarter, Leonard F. Leganza, President and Chief Executive Officer, said, "We expect our third quarter performance to reflect very positive results. Our most recent acquisition of Greenwald Industries, Inc. and Greenwald Intellicard, Inc. has, with little disruption, been successfully integrated into the Company's operations. The Industrial Hardware group continues to show strong increases in sales and earnings as the result of new product introductions as well as the robust effects of the vehicular hardware markets. In addition, the earlier acquisitions of Ashtabula Industrial Hardware and the product lines from Hansen International Inc. have enhanced our sales as these lines are integrated into our facilities in Cleveland, Ohio and Tillsonburg, Ontario. The anticipated results are being achieved despite some softness in our metal casting and lock operations."

Mr. Leganza continued, "We anticipate that Eastern will report third quarter earnings in the range of $1.8 to $2.0 million or $0.51 to $0.55 per basic share which will represent a 10% to 20% increase over the earnings reported in the previous year's third quarter. Sales for the third quarter are expected to be in the range of $23 to $25 million or an increase of approximately 30% as compared to the same period in 1999.

Eastern expects to announce its third quarter earnings during the week of October 9, 2000.

The Eastern Company manufactures and markets a broad range of locks, latches, fasteners, coin meter products, smart card products and systems and other security hardware that meets diverse security and safety needs of industrial and commercial customers. Headquartered in Naugatuck, CT, the Company has eight manufacturing locations in the U.S.A., Canada, Mexico and the Pacific Rim.

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 result 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.

CONTACT: The Eastern Company
Leonard F. Leganza, President/C.E.O.
203/729-2255, Ext. 105
John L. Sullivan III, Vice President/Treasurer
203/729-2255. Ext. 110