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GUILD GUITARS TO MOVE PRODUCTION FROM TACOMA, WASH.
 
TO NEW HARTFORD, CONN.
 
SCOTTSDALE, Ariz. (Jan 31, 2008)- Fender Musical Instruments Corporation (FMIC) announced today it will move production of Guild Guitars from Tacoma, Wash. to its newly acquired Ovation and Hamer Guitar manufacturing facility in New Hartford, Conn. The move will take place as a phased operational transfer, expected to be completed before the end of the year.
 
FMICs recent (Dec. 31, 2007) acquisition of Bloomfield, Conn. based Kaman Music Corp. also included the purchase of KMCs Ovation and Hamer guitar brands, and their manufacturing facility in New Hartford, Conn. After closing the KMC acquisition, an extensive review of the Tacoma and New Hartford manufacturing facilities was conducted to determine the best long-term home for Guild production. The final decision to relocate Guild to New Hartford was driven by FMICs desire to improve overall production processes as well as meet the growing demand for Guild throughout the world.
 
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.
 
Approximately 70 Tacoma, Wash. based FMIC employees will be affected by the move throughout the year and will be provided with comprehensive assistance, including retention and severance packages, benefit continuation and outplacement services.
 
Guild is one of the six original American guitar brands, offering high quality instruments to value conscious players of all levels and styles. Founded in 1952, Guild began its rise from a small Manhattan guitar workshop to one of the worlds premier makers of high-quality acoustic (and several popular electric) guitars. The fledgling company originally set up a 1,500-square-foot manufacturing facility on the second floor of a factory near the base of the Brooklyn Bridge.
 
Today, Guild continues to champion its timeless history and heritage of old-world craftsmanship, modern design innovation and solid value. Guild guitars remain among the most sought after instruments for discerning musicians. Guild Guitars became a brand of the Fender Musical Instruments Corporation in 1995.