Delaware Court Rejects AB Value's Claim; Kreisler Board Discusses Strategic Alternatives And Declares $3.00 Per Share Cash Dividend

ELMWOOD PARK, N.J., Dec. 17, 2014 /PRNewswire/ --

Dear Fellow Kreisler Stockholder:

We are pleased to advise you that the Delaware Chancery Court yesterday rejected the request of AB Value Partners L.P. ("AB Value") to be excused from its failure to meet our long-standing bylaw deadline for submitting director nominations. The Court stated that these deadlines are "commonplace' and "useful in permitting orderly shareholder meetings" and that AB Value had not even presented a "colorable claim" (in the Court's opinion) to be excused from the deadline. AB Value's thinly disguised attempt to gain control of Kreisler has not resulted in greater value for stockholders but only resulted in diversion of management time and resources from its core business.

The Kreisler board of directors is constantly examining its strategic alternatives. The board has received the opinion of an investment banker that its five-year projected growth plan was "very creditable." and, if fulfilled, will produce substantial additional value for our stockholders.  Nevertheless, the board is prepared to change course and even sell the company if those growth projections prove untrue or if substantial additional value can be obtained in other ways. Michael and Ned Stern each have a majority of their individual net worth's tied up in the company and their interests completely coincide with the interests of our stockholders.

Whatever the outcome of the process, we are as committed as ever to continuing to meet the needs of our customers, attracting and retaining world class talent, and driving sales and margins. We are not providing a timetable for our process, nor do we intend to comment further or update the market until it is complete.

The Kreisler board has decided that these attempts by stockholders with a very short-term vision for the company are partly based upon the large amount of cash and cash equivalents on its balance sheet. Hedge funds like AB Value typically do not have a five-year horizon for their investors, which is major part of our business plan. Accordingly, the board has decided to reduce Kreisler's cash balances so that they do not exceed our projected needs.

The board has therefore declared a cash dividend of $3.00 per share to its stockholders of record at the opening of business of December 29, 2014, with a payment date of December 31, 2014. Starting in 2015 and each year thereafter, the Board will consider paying further cash dividends depending upon the cash needs and performance of the company.

Sincerely,

/s/ Edward A. Stern

Edward A. Stern
Co-President and Chief Corporate Officer

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SOURCE Kreisler Manufacturing Corporation