Alliance Laundry Holdings LLC Reports 2004 Sales and Earnings

Business Wire, March 21, 2005

RIPON, Wis. -- Alliance Laundry Holdings LLC announced today results for the year ended December 31, 2004.

Net revenues for the full year 2004 increased $13.4 million, or 5.1%, to $281.0 million compared to $267.6 million for the full year 2003. Net income for 2004 decreased $4.1 million to $11.8 million as compared to $15.9 million for the same period in 2003. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(a) for 2004 was $45.1 million compared with EBITDA of $53.1 million for 2003.

The overall net revenue increase for the year of $13.4 million was primarily attributable to higher commercial laundry revenue of $8.6 million, higher service parts revenue of $1.3 million and higher consumer laundry revenue of $3.6 million. Net income for 2004 included $5.6 million of non-cash compensation expense related to incentive units issued to our executives in 1998 and 2003; and $4.8 million of expense related to an abandoned public offering of Income Deposit Securities. Net income for 2003 included $0.8 million of costs associated with the settlement of a lawsuit against a former subsidiary in Argentina.

On January 27, 2005, ALH Holding Inc., an entity formed by Teachers' Private Capital, the private equity arm of Ontario Teachers' Pension Plan Board ("OTPP"), acquired 100% of the outstanding equity interests in Alliance Laundry Holdings LLC ("Alliance") pursuant to a unit purchase agreement for aggregate consideration of $450.0 million. The management of Alliance continues to hold a significant investment in the Company.

In announcing the Company's results today, CEO and President Thomas F. L'Esperance said, "We are extremely pleased with our top line revenue growth of 5.1% for the twelve months ended December 31, 2004. Leading the way for the year was higher international equipment revenue of $7.3 million and higher consumer laundry revenue of $3.6 million resulting from our re-entry into the U.S. home laundry market."

"We have completed the purchase by OTPP of Alliance. Alliance's management is enthusiastic about the opportunities this partnership presents as we work together to execute our Company's growth objectives," said L'Esperance.

Alliance Laundry Holdings LLC is the parent company of Alliance Laundry Systems LLC (www.comlaundry.com), a leading North American manufacturer of commercial laundry products and provider of services for laundromats, multi-housing laundries, on-premise laundries and drycleaners. Alliance 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 the well known brand names Speed Queen(R), UniMac(R), Huebsch(R) and Ajax(R).

(a) Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles (GAAP), we also disclose EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), which is a non-GAAP measure. Based on our industry and debt financing experience, we believe that EBITDA is customarily used to provide useful information regarding a Company's ability to service existing debt, to sustain potential future increases in debt and to satisfy capital requirements. EBITDA, adjusted for certain non-recurring and non-cash items and as defined in the New Senior Credit Facility and the indenture governing the 2005 Senior Subordinated Notes (the "2005 Notes Indenture"), is also used to determine our compliance with key financial covenants under the New Senior Credit Facility and the 2005 Notes Indenture, which, among other things, impacts the amount of indebtedness we are permitted to incur. Our use of EBITDA, however, should not be considered an alternative to measures of operating performance as determined in accordance with generally accepted accounting principles, including net income, as a measure of our operating results, and cash flows, as a measure of our liquidity. Because EBITDA is not calculated identically by all companies, the presentation herein may not be comparable to other similarly titled measures of other companies. A reconciliation of EBITDA to net income is provided under the heading Selected Financial Data of this press release.

Safe Harbor for Forward-Looking Statements

With the exception of the reported actual results, this press release 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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of our business to differ materially from those expressed or implied by such forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are based on reasonable assumptions, we 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 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 our products abroad; possible fluctuation in interest rates, which affects our earnings and cash flows; the impact of substantial leverage and debt service on us; possible loss of suppliers; risks related to our asset backed facilities; dependence on key personnel; labor relations; potential liability for environmental, health and safety matters; potential future legal proceedings and litigation; 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, 2004.