LTEC LOUD Technologies Inc (CE)

LOUD Technologies Inc. (OTCBB:LTEC) announced today that its board of directors has authorized a 1-for-5 reverse split of the Company's outstanding common stock. Shareholder approval of the reverse stock split is not required. "During the past couple of years we believe we have come a long way toward building the high-performance organization we need to efficiently leverage LOUD Technologies' expanding global distribution capability, growing portfolio of well-known branded products, and enviable reputation for quality and innovation in the professional audio and music industries," said Chairman and CEO Jamie Engen. "We have reduced operating costs, eliminated excess manufacturing capacity, rationalized our corporate structure, established high-quality relationships with proven overseas contract manufacturers, enhanced our distribution network, and financed and completed a major acquisition which we believe added important new brands to our product family and increased both our current revenue base and our long-term growth potential." Engen continued, "We believe these improvements to our operating platform have improved LOUD Technologies' financial performance, cash flow and revitalized our balance sheet. Following the reverse stock split, we believe that the Company will be in a position to list on the NASDAQ Capital Market, and we plan to file a listing application as soon as possible. We believe such a listing would be an additional positive step in our program to increase LOUD Technologies' visibility in the financial community, expand trading volume, and build long-term value for our shareholders." The 1-for-5 reverse stock split will be effective after the close of the market on November 17, 2005. Fractional shares of stock will not be issued as a result of the reverse split. Shareholders who would otherwise receive a fractional share of common stock will be entitled to receive cash in lieu of fractional shares. Mellon Investor Services LLC is LOUD Technologies' transfer agent and will act as the exchange agent for the purpose of implementing the exchange of stock certificates in connection with the reverse split. The exchange or conversion price and/or the number of shares of common stock issuable under the Company's outstanding warrants and options will be proportionately adjusted to reflect the reverse stock split. About LOUD Technologies Inc. LOUD Technologies Inc. (www.loudtechinc.com) is one of the world's largest manufacturers and distributors of professional audio and music products. As the corporate parent for world-recognized brands including Alvarez, Ampeg, Crate, EAW, Knilling, Mackie, SIA and TAPCO, LOUD Technologies produces and distributes a wide range of digital recording products, loudspeakers, commercial audio systems, audio and music software, guitars, guitar and bass amplifiers, and orchestral string instruments. LOUD Technologies' brands can be found in professional and project recording studios, video and broadcast suites, post-production facilities, sound reinforcement applications including churches and nightclubs, and retail locations and on major musical tours. Forward-Looking Statements Certain statements contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words - "believe", "expect", "anticipate", "intend", "will" and similar expressions are examples of words that identify forward-looking statements. These forward-looking statements are based on current expectations and assumptions based on information currently available to us. These forward-looking statements may be affected by the risks and uncertainties associated with our business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2004. We do not assume, and expressly disclaim, any obligation to update these forward-looking statements to conform them to actual results or changes in the Company's expectations.