SUMX Summa Industries

Summa Repurchases Preferred and Common Stock TORRANCE, Calif., May 4 /PRNewswire-FirstCall/ -- Summa Industries announces that it has repurchased and retired all of its outstanding Preferred Stock and 10.3% of its Common Stock from an investment manager, by issuance of new, unsecured, subordinated debt of $10.2 million ("Sub-debt"). Prior to the transaction, as reported in the Company's most recent proxy statement, this stockholder owned 21.9% of Summa's outstanding shares, assuming conversion of the Preferred Stock. The transaction is expected to reduce the Company's finance costs and be accretive to earnings per share. No gain or loss will be reported on the transaction. The Company also cancelled its previously announced 2003 stock buy-back plan. Summa repurchased the Preferred Stock at its current book value of $6.6 million. The repurchase eliminates the Preferred Stock accretion charge to net income before the calculation of earnings per share. In the same transaction, the Company repurchased 452,856 shares of Common Stock at a price of $8.02 per share, representing an 8% discount from the recent trading price on the Nasdaq National Market. The resulting $10.2 of Sub-debt will initially bear interest at 12%, which will be reduced automatically as the outstanding balance is reduced, and is due by September 2006. There are no prepayment penalties and the Company intends to use its bank credit line to prepay a portion of the Sub-debt as soon as practical. Summa projects that it will have approximately $33 million in total debt, including the Sub-debt, at a weighted average interest rate of about 4% at May 31, 2004. 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 anticipated future finance costs and debt levels, the effect of the repurchase on future earnings per share and the possibility of prepaying portions of its subordinated debt. 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 changes in capital markets, deterioration of the economy which could result in the inability to prepay the subordinated debt or even service the debt when due, 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, please contact: James R. Swartwout, +1-310-792-7024, or fax, +1-310-792-7079, ; or http://www.summaindustries.com/. DATASOURCE: Summa Industries CONTACT: James R. Swartwout of Summa Industries, +1-310-792-7024, or fax, +1-310-792-7079, Web site: http://www.summaindustries.com/

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