QUIP Quipp (MM)

MIAMI, Dec. 13 /PRNewswire-FirstCall/ -- Quipp, Inc. (NASDAQ:QUIP) announced today that its Board of Directors has declared a dividend of $0.05 per share. The dividend is payable on March 1, 2006 to shareholders of record on February 1, 2006. Quipp also announced that the dividend is intended to be the first of regular quarterly dividends. Michael S. Kady, Quipp's President and Chief Executive Officer, stated: "Our determination to institute a quarterly dividend results from recent discussions with several of our large shareholders. While most of these shareholders stated their support for our recent acquisition of Newstec, which was designed to provide longer-term benefits to our shareholders, some expressed a desire for Quipp also to provide a more immediate return to shareholders. After consideration of anticipated cash requirements, our Board of Directors has determined that it would be appropriate to commence quarterly dividend payments." Mr. Kady continued: "The adverse economic conditions currently affecting the newspaper industry have been widely reported, and we anticipate that purchases of capital equipment by newspapers will remain soft through the first half of 2006. Accordingly, we believe that starting dividend payments at $0.05 per share is appropriate." Mr. Kady added: "We anticipate that we will utilize a significant portion of our capital resources to make additional acquisitions, and it is our intention to seek one or more acquisitions that will expand our customer base beyond the newspaper industry. Depending upon our success in diversifying our target market and continuing to generate positive cash flow from operations, the Board may consider increasing the dividend in the future." Quipp, Inc., through its subsidiaries, Quipp Systems, Inc. and Newstec, Inc., designs, manufactures and installs material handling systems and equipment to facilitate the automated inserting, assembly, bundling and movement of newspapers from the printing press to the delivery truck. CAUTIONARY STATEMENT: This press release contains forward-looking statements that address, among other things, the continuation of regular quarterly dividends, anticipated purchases of capital equipment by newspapers through the first half of 2006, the utilization of a significant portion of Quipp's capital resources to make additional acquisitions, the making of acquisitions that will expand Quipp's customer base beyond the newspaper industry, and the possibility of an increase in the amount of the dividend in the future. Actual results could differ materially from those described in the forward-looking statements due to, among other things, economic conditions generally and in the newspaper industry, competition, unanticipated declines in newspaper advertising revenues, extended delays in capital spending by newspapers, inability to effect acquisitions, including acquisitions that would expand Quipp's customer base beyond the newspaper industry, and unanticipated decrease in operating cash flow. DATASOURCE: Quipp, Inc. CONTACT: Michael Kady, Quipp, Inc., +1-800-345-9680 Web site: http://www.quipp.com/

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