Harbinger Group Inc. Comments on Secondary Offering of Spectrum Brands Holdings Common Stock by Harbinger Capital Partners Master Fund I, Ltd.

NEW YORK, June 28, 2011 /PRNewswire/ -- Earlier today, Spectrum Brands Holdings, Inc. (NYSE: SPB), which is 54% owned by Harbinger Group Inc. (NYSE: HRG) (the "Company"), filed a registration statement with the Securities and Exchange Commission for a secondary offering of common stock.  The selling security holder in the offering will be Harbinger Capital Partners Master Fund I, Ltd. ("HCP Master Fund"), and not HRG.  In January 2011, HCP Master Fund and affiliated funds contributed 27.8 million shares of Spectrum common stock to HRG in return for HRG common stock.  The shares being sold by the HCP Master Fund represent those retained by the HCP Master Fund following the HRG contribution transaction in January. If the underwriters over-allotment option is exercised in full, the sale will substantially complete the disposal of all Spectrum common stock held by the HCP Master Fund, which will improve the public market liquidity of Spectrum shares and expand its shareholder base.

HRG views Spectrum as a long-term investment, consistent with our stated strategy of making long-term investments in controlling equity positions.  Therefore, HRG is not a selling security holder in the proposed Spectrum offering.  While HRG reserves the ability to make future decisions to buy, sell or hold Spectrum common stock based on market and other factors, HRG is not participating in the current Spectrum offering. Due to the terms of HRG's financing arrangements, HRG is not able to purchase Spectrum shares directly from HCP Master Fund without complying with covenants relating to related party transactions.  HRG may consider other opportunities to increase its stake in Spectrum through future open market purchases or private purchases from third parties.

As a testament to our commitment to Spectrum, HRG has agreed to a lock-up agreement with the underwriters of the Spectrum offering, pursuant to which we may not sell or propose to sell shares of Spectrum common stock for a period of at least 180 days from the date of the offering.

About Harbinger Group Inc.

Harbinger Group Inc. is a diversified holding company. The Company's principal operations are conducted through subsidiaries that offer life insurance and annuity products, and branded consumer products such as batteries, pet supplies, home and garden control products, personal care and small appliances. The Company focuses on opportunities in these sectors as well as financial products, telecommunications, agriculture, power generation and water and natural resources.

CONTACT:

APCO Worldwide
Jeff Zelkowitz, 646-218-8744
[email protected]

or

Harbinger Group Inc.
Francis T. McCarron, CFO, 212-906-8560
[email protected]

SOURCE Harbinger Group Inc.