Lennox International Opens New Manufacturing Operation in Mexico

    DALLAS, July 20 /PRNewswire-FirstCall/ -- Lennox International Inc.
 (NYSE:   LII) announced plans to open a new manufacturing operation in
 Saltillo, Mexico under the name LII United Products. The manufacturing
 lines responsible for Lennox-brand Merit series air conditioners and heat
 pumps, as well as air handlers, will be shifted to Saltillo. The Merit
 series is currently manufactured in Marshalltown, IA, while the CB26 air
 handler is currently manufactured in Grenada, MS.
     The three-year project is expected to break ground in the second half
 of 2007, with initial production starting in the second quarter 2008 and
 ramping up to full production by early 2010. The Saltillo operation is
 anticipated to be 300,000 square feet and employ over 500 at full
 production. The projected capital commitment is approximately $45 million
 over three years and is expected to lead to cost reductions of over $13
 million by 2009, increasing to over $20 million per annum by 2010.
     "There is fierce competition for the growing business in the Sunbelt
 region," said Todd Bluedorn, LII chief executive officer. "Our Merit series
 offering is our primary Lennox-brand product line serving the Sunbelt
 market, and we must produce quality products at the lowest costs to compete
 in that market and grow our business. The Saltillo location offers
 significant manufacturing and logistics cost advantages to help us expand
 our capacity and flexibility to meet long-term demand and carry out our
 Sunbelt growth strategies."
     The company's current plans are for its remaining Lennox-branded
 products, including all furnaces, its mid-tier Elite series cooling
 products, and its premium line of Dave Lennox Signature Collection
 products, to continue to be manufactured at its Marshalltown facility. "LII
 began in Marshalltown, and still has deep roots there," Bluedorn said. "The
 Marshalltown workforce is a high-quality workforce and will continue to be
 involved in the production of our more complex product lines.
     "The markets in which we compete demand the highest quality products
 and the most effective distribution, at the lowest possible cost. Moving
 forward, one of our top priorities will be to continually review all of our
 manufacturing and sourcing needs, finding opportunities to lower our costs
 and more effectively serve our customers."
     Lennox International Inc., through its subsidiaries, is a global leader
 in the heating, air conditioning, and refrigeration markets. Lennox
 International stock is traded on the New York Stock Exchange under the
 symbol "LII". Additional information is available at:
 http://www.lennoxinternational.com or by contacting Karen O'Shea, vice
 president, communications and public relations, at 972-497-5172.
     This news release contains forward-looking statements within the
 meaning of the Private Securities Litigation Reform Act of 1995. These
 statements are subject to numerous risks and uncertainties that could cause
 actual results to differ materially from such statements. For information
 concerning these risks and uncertainties, see LII's publicly available
 filings with the Securities and Exchange Commission. LII disclaims any
 intention or obligation to update or revise any forward-looking statements,
 whether as a result of new information, future events or otherwise.
 
 

SOURCE Lennox International Inc.

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