SUMX Summa Industries

Summa Enters Into New Banking Relationship Incurs Charges TORRANCE, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Summa Industries announces that it has entered into a new comprehensive relationship with Wells Fargo Bank, National Association, which includes a $25 million line of credit and a $5 million term loan. The banking arrangement also provides greater flexibility for future borrowings, the ability to accumulate a sinking fund to redeem the Company's preferred stock, if necessary, and more availability under the line of credit than with the Company's former bank. Due to this change, Summa will take a non-recurring charge to interest expense of approximately $265,000, or about $.04 per share, in the quarter which ends February 29, 2004 for term loan breakup fees and unamortized bank fees. Under the new relationship, the Company estimates its weighted average interest rate will be approximately 3.7% at February 29, 2004 compared to 4.9% at November 30, 2003, which will reduce quarterly interest expense by about $60,000, or $.01 per share, based on recent debt levels. Summa Industries manufactures proprietary engineered plastic products for a broad spectrum of industrial and commercial markets Statements in this news release which relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and fall under the safe harbor. These forward-looking statements include, but are not limited to, statements regarding the availability of funds under the line of credit and future interest rates and interest expenses. Actual results could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including, but not limited to failure to comply with bank financial covenants, instability of financial markets, and other risks and uncertainties described in detail under "Risk Factors" in Summa's Annual Report on Form 10-K for the fiscal year ended August 31, 2003. For further information, contact James R. Swartwout, (310) 792-7024; fax (310) 792-7079; ; or http://www.summaindustries.com/. DATASOURCE: Summa Industries CONTACT: James R. Swartwout, +1-310-792-7024, or fax, +1-310-792-7079, Web site: http://www.summaindustries.com/

Copyright