Walter Meier AG (VTX:WMHN) A Restructuring For Walter Meier In North America: High Non-recurring Costs As The Basis For A Processing Business That Will Stand The Test Of Time

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The effects of the financial crisis are having a significant impact on the Processing Division. Since October 2008, Walter Meier has seen demand in the USA decline considerably. To cushion these effects, its North American business will be reduced to its core activities and restructured. This includes a withdrawal from the retail sector. The company's income statement will be burdened with substantial extraordinary expenses but, despite this, Walter Meier is expecting a small consolidated net income for 2008.

The Processing Division is experiencing a sharp fall in demand against the backdrop of the economic crisis. This is leading to the Group's activities in North America being restructured and refocused at both a strategic and an organizational level. It will abandon its retail business, which is mainly based on customers' own brands. Currently, Walter Meier is examining various exit strategies to make the transition an orderly one. Focus will be placed on industrial and trade equipment in the metal- and woodworking sectors, and on material handling. Walter Meier is thus returning to its roots in industrial processing laying the foundations for a clearly focused and globally coordinated strategy.

In the course of the restructuring program, approximately 100 jobs will be eliminated. The sites in Elgin/IL and Toronto/ON will be closed; the head office for the Group's North American business will move from Elgin to LaVergne/TN. CEO Silvan G.-R. Meier commented: "We are preparing for a longer recession in the North American market and have to reorganize and refocus our activities in this market. Unfortunately, redundancies are unavoidable in this situation. We shall do everything possible to implement them in a responsible manner." Silvan G. - R. Meier is convinced that with these measures the North American processing business is set up crisis-resistant for the future.

Because of the change in the economic outlook, investments and goodwill have to be written down in addition to the restructuring expenses. The 2008 income statement will be burdened with extraordinary expenses of approximately CHF 30 million, of which the majority will not affect cash flow.

The Climate Division is performing well and meeting expectations. Only a small decline in sales is expected for the Group as a whole in the current year. Despite the substantial extraordinary charges, a small consolidated net income is expected for 2008.

Further information Patrick Bossart, Head of Corporate Communications +41 44 928 15 24, corporate.communications@waltermeier.com

Key dates December 31, 2008 Fiscal year closes 2008 February 24, 2009 Annual report 2008 plus Media and Financial Analysts' Conference March 24, 2009 Annual shareholders' meeting

Walter Meier is an international climate and processing technology group. The company was founded in 1937 and today generates sales of over CHF 800 million with 1800 employees. Walter Meier sets great store by customer-specific total solutions and comprehensive support services. Shares in Walter Meier are listed on the SIX Swiss Exchange (symbol WMN).

The media release can be downloaded from the following link:

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Walter Meier AG Laubisrütistrasse 24 Stäfa

WKN: 1594024; ISIN: CH0015940247; Index: SPI, SPIEX, SSCI; Listed: Main Market in SWX Swiss Exchange;



LINK: http://hugin.info/120056/R/1279393/285639.pdf

Walter Meier AG

http://www.waltermeier.com

ISIN: CH0015940247

Stock Identifier: XSWX.WMN