Alliance Laundry Holdings LLC Reports 2002 Sales and Earnings

Business Wire, March 13, 2003

Business Editors

RIPON, Wis.--(BUSINESS WIRE)--March 13, 2003

Alliance Laundry Holdings LLC announced today results for the year ended December 31, 2002.

Net revenues for the full year 2002 increased $1.1 million, or 0.4%, to $255.6 million compared to $254.5 million for the full year 2001. Net income for 2002 increased $0.6 million to $1.3 million as compared to $0.7 million for the same period in 2001. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) before infrequently occurring and plant relocation costs for 2002 was $57.1 million compared with EBITDA before infrequently occurring and plant relocation costs of $52.0 million for 2001.

Net income for 2002 included $10.9 million of transaction costs incurred in establishing a new asset backed facility for the sale of trade receivables and notes receivable, $3.4 million of expense related to an abandoned Canadian public offering, and a $2.0 million non-cash loss resulting from the write-off of certain unamortized debt issuance costs. The Company entered into an amended and restated credit agreement dated August 2, 2002, and as such wrote-off the unamortized debt issuance costs related to its prior senior credit facility of $2.0 million. Net income for 2001 included plant relocation costs of $1.4 million.

In announcing the Company's results today, Chairman and CEO Tom L'Esperance said, "In 2002, our strong market position and continued focus on asset and cost management helped us achieve some year over year revenue growth and substantial year over year earnings growth. In addition, we are very pleased to have the new asset backed facility and senior credit facility in place as we move forward in 2003. The economy in general made certain of our markets challenging in 2002. We expect that the same economic and market issues that affected the commercial laundry industry in 2002 will persist in 2003."

"If we are correct and conditions remain similar to what we experienced in 2002, we will continue to de-lever and focus on marketplace execution, asset management and aggressive cost control," said L'Esperance.

With the exception of the reported actual results, the information presented herein contains predictions, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including, without limitation, statements that include the words "growth", "expect" and "continue" or similar expressions and statements relating to growth or performance objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that such plans, intentions, expectations, objectives or goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include: impact of competition; continued sales to key customers; possible fluctuations in the cost of raw materials and components; possible fluctuations in currency exchange rates, which affect the competitiveness of the Company's products abroad; market acceptance of new and enhanced versions of the Company's products; the impact of substantial leverage and debt service on the Company and other risks listed from time to time in the Company's reports, including, but not limited to the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2002.

Alliance Laundry Holdings LLC, headquartered in Ripon, Wisconsin, is a leading manufacturer of commercial laundry products and provider of services for laundromats, multi-housing laundries, on-premise laundries and drycleaners worldwide. The Company offers a full line of washers and dryers for light commercial use as well as large frontloading washers, heavy duty tumbler dryers, and presses and finishing equipment for heavy commercial use. The Company's products are sold under four well known brand names: Speed Queen, UniMac, Huebsch and Ajax.

Financial information for Alliance Laundry Holdings LLC appears on the next two pages, followed by management's discussion and analysis of financial condition and results of operations for the years ended December 31, 2002 and 2001.