Smith-Midland Corporation Announces Common Stock Subscription Agreements With Two Key Smith-Midland Executives

Business Wire, Sept 7, 1999

MIDLAND, Va.--(BUSINESS WIRE)--Sept. 7, 1999--

Ted Pennington, Vice President, Finance and CFO of Smith-Midland Corporation (NASDAQ: SMIDC, SMIWC; Boston Stock Exchange: SMM, SMM/W), announced today that two key executives of the Company had signed subscription agreements to purchase an aggregate of 471,428 shares of Smith-Midland Corporation Common Stock.

Mr. Rodney I. Smith, President of the Company, has agreed to purchase 142,857 shares and Mr. Guy M. Schuch, Chief Operating Officer of the Company's primary operating subsidiary, has agreed to purchase 328,571 shares. The aggregate investment of $330,000 will provide additional working capital to the Company and assist the Company in its efforts to comply with NASDAQ's net tangible asset requirement.

The Company and Messrs. Smith and Schuch have agreed that the consummation of the sale of Common Stock under the subscription agreements is subject to Stockholder approval of the agreements at the Company's Annual Meeting on September 17,1999, and to the Company maintaining its NASDAQ listing.

Smith-Midland develops, manufactures, licenses and sells a broad array of precast concrete products for use primarily in the construction, transportation and utilities industries. Smith-Midland has two (2) manufacturing facilities located in Midland, Virginia and Reidsville, North Carolina. Easi-Set Industries, a wholly-owned subsidiary of Smith-Midland Corporation, licenses Smith-Midland developed products throughout North America and in Europe and South America. Easi-Set Industries currently has 30 precast concrete product licensees worldwide.

This announcement contains forward-looking statements which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors which might cause such a difference include, but are not limited to, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, the possibility that anticipated cost savings may not be achieved, general business and economic conditions, the effect of the Company's accounting policies and other risks detailed in the Company's Annual Report on Form 10-KSB and in other filings with the Securities and Exchange Commission.