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# Johnson Outdoors Completes Initial Inspection of Binghamton, New York Plant; Company Announces Receipt of Military Tent Order
RACINE, Wis.--(BUSINESS WIRE)--July 7, 2006--Johnson Outdoors Inc. (NASDAQ:JOUT), a leading global outdoor recreation company, today announced an initial inspection indicates that damage and losses related to the flooding and temporary closure of its Binghamton, New York plant and administrative offices will exceed $1.2 million, the loss level at which the Company expects insurance coverage to begin. Heavy rains caused massive flooding which crippled the Binghamton area and other parts of the Northeastern United States in the days before the July 4th holiday week-end. The Company's finished goods warehouse in the area was not affected by the flooding. Binghamton is home to Johnson Outdoors' Outdoor Equipment Group business, which makes and markets consumer, commercial and military tents and camping equipment.
An initial inspection did not reveal structural damage to the closed facility; however, a final, comprehensive damage assessment of the plant and equipment cannot be made until all mud and debris are removed. Extensive clean-up efforts are now underway, with crews on-site, working around-the-clock so operations at the facility can resume as quickly as possible.
At this time, preliminary plans reflect a start-up of limited production is possible by mid-August 2006, with employees beginning to return to work on a staggered, as needed basis, that month. The Company cautions this is a best-case scenario estimate and limited production start-up timing could change based on the results of the on-going damage assessment.
Shipments from the Company's finished goods warehouse to consumer and commercial customer accounts resumed late last week when roads in the flooded region reopened. The Company does not maintain finished goods inventory for its Military tent business. The customer service center is back on-line, and administrative offices will reopen at a temporary location on Monday, July 10.
Employee safety and well-being remain a top concern. The Company is very pleased to report that all employees are safe, and coordination of efforts to assist those who have lost or been displaced from their homes by the flood has begun. The Company will continue to pay employee salaries through July 2006.
On June 27, 2006 the Company was awarded a $2.0 million order for the Modular General Purpose Tent System (MGPTS) with anticipated delivery in the fourth quarter of calendar 2006. As a result of this order, the Company has now received eleven (11) separate orders totaling $19.5 million awarded under the multi-vendor, multi-product contract announced on September 7, 2005. The Company now expects fiscal 2006 military sales will be in the $30-$35 million range.
ABOUT JOHNSON OUTDOORS INC.
Johnson Outdoors is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products. The Company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft, Marine Electronics, Diving and Outdoor Equipment. Johnson Outdoors' familiar brands include, among others: Old Town® canoes and kayaks; Ocean Kayak and Necky® kayaks; Escape® electric boats; Minn Kota® motors; Cannon® downriggers; Humminbird®, Bottomline® and Fishin' Buddy® fishfinders; Scubapro® and UWATEC® dive equipment; Silva® compasses and digital instruments; and Eureka!® tents.
Visit us on line at http://www.johnsonoutdoors.com
SAFE HARBOR STATEMENT
Certain matters discussed in this press release are "forward-looking statements," intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are considered forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results or outcomes to differ materially from those currently anticipated. Factors that could affect actual results or outcomes include changes in consumer spending patterns; the Company's success in implementing its strategic plan, including its focus on innovation; actions of companies that compete with the Company; the Company's success in managing inventory; movements in foreign currencies or interest rates; the Company's success in restructuring of its European Diving operations; unanticipated issues related to the Company's military sales; the success of suppliers and customers; the ability of the Company to deploy its capital successfully; adverse weather conditions; events related to the terminated Buy-Out transaction; and other risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
CONTACT: Johnson Outdoors Inc.
David Johnson, 262-631-6600
Cynthia Georgeson, 262-631-6600