SLS International To Move To State Of The Art Production Facility

New Facility Gives Company Capability To Produce $200 Million Of Audio Products Annually And To Meet Growing Demand From Big-Box Retailers

13-Dec-04

SLS International announced today that it has entered into a ten-year lease on a state-of-the-art production facility for the development and production of its ultra-high fidelity ribbon driver loudspeakers, electronics and sound systems. The new 150,000 square foot facility is expected to allow the Company to substantially increase its production capacity and to meet the expected demand from big-box retailers. The lease has a fixed price purchase option of $3.5 million, which the Company expects to exercise next year. The facility, located on approximately 11 acres, was built in 1984 and is in Ozark, Missouri, a suburb of Springfield, where SLS's corporate headquarters is located.""During the last year, we have made tremendous progress in attracting interest from many of the opinion leaders in the entertainment and music industry,"" said John Gott, SLS International's Chief Executive Officer. ""More importantly, though, is that demand has increased significantly from users of our products in the professional, commercial and cinema markets. The buzz that has been created within the industry due to the quality and cost of our products has now attracted interest from some of the largest retailers in the world. This facility will enable us to efficiently and cost-effectively produce up to $200 million of product annually to meet the growing demand.""SLS expects that the cost savings achieved by producing more of its cabinets at the Facility will pay for the building over a period of a few years. The facility is currently equipped with machinery and equipment for production lines, engineering, painting and exhaust. There is over 6,000 square feet of modern office space and complete up to date employee facilities. SLS expects to move its corporate headquarters to the new location.According to Morris Dock of MoDoCo Construction, one of the general contractors that will be doing cosmetic and facade renovation on the facility, ""The facility is in very good condition. To build a facility of comparable quality today would cost $100 per square foot.""