NN, Inc. Announces the Closure of Its Tempe Arizona Facility and the Sale of Certain of These Assets to Triumph Manufacturing, LLC

JOHNSON CITY, Tenn., Sept. 8 /PRNewswire-FirstCall/ -- NN, Inc. (Nasdaq: NNBR) today announced that it has sold a portion of the manufacturing assets of its Tempe Arizona facility to Triumph Manufacturing LLC, a newly formed Company that is not affiliated with NN.  

On January 6, 2010, NN announced that it would be closing its Tempe Arizona facility, consolidating most of the production into its two facilities in Wellington, Ohio and ceasing production of certain products that were not transferred to its Ohio facilities.  However, based on the sale of the above mentioned assets, Triumph Manufacturing will be able to take over the existing facility, employ a number of the former management and production employees and continue to supply existing customers with these products.

Additionally, on January 6, 2010 the Company announced that it expected to incur cash charges of approximately $2.5 million in severance, equipment relocation and other closing costs during the first three quarters of 2010.  As of today, NN has completed the majority of the planned transfer of the assets to its Wellington, Ohio facilities and has incurred cash charges to date of approximately $1.7 million.  NN now expects total cash costs in the transaction to total approximately $2.0 million.  

Roderick R. Baty, Chairman and Chief Executive of NN, commented, "The sale of certain production assets of our former Tempe facility to Triumph Manufacturing is a very positive outcome for NN, our customers, and our former employees who will join the new company.  We had originally expected to cease production of a number of products made at the Tempe facility.  Now, many of our customers that would have been affected by the closing will be able to continue to receive product from a known source and some of the production jobs will be retained in the area.  We wish the management and employees of Triumph Manufacturing great success."

NN, Inc. manufacturers and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of end markets on a global basis. Headquartered in Johnson City, Tennessee, NN has 11 manufacturing plants in the United States, Western Europe, Eastern Europe and China.  NN, Inc. had sales of US $259 million in 2009.

Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements, are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of NN, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion.  All forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "assumptions", "target", "guidance", "outlook", "plans", "projection", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "potential" or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. Factors which could materially affect actual results include, but are not limited to: general economic conditions and economic conditions in the industrial sector, inventory levels, regulatory compliance costs and the Company's ability to manage these costs, start-up costs for new operations, debt reduction, competitive influences, risks that current customers will commence or increase captive production, risks of capacity underutilization, quality issues, availability and price of raw materials, currency and other risks associated with international trade, the Company's dependence on certain major customers, the successful implementation of the global growth plan including development of new products and consummation of potential acquisitions and other risk factors and cautionary statements listed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on 10-K for the fiscal year ended December 31, 2009.

SOURCE NN, Inc.