Meade Instruments Corp. Implements Operational Cost Control Initiatives; Significant Annualized Savings Expected from Facility Consolidation and Workforce Reductions

Business Wire, July 27, 2006

IRVINE, Calif. -- Meade Instruments Corp. (NASDAQ:MEAD), a leading designer and manufacturer of consumer optical products including telescopes, riflescopes, binoculars and accessories for the amateur astronomy and sporting goods markets, today announced its implementation of operational cost control initiatives and a workforce reduction that are expected to result in a combined annualized decrease in total labor costs of approximately $3.0 million.

This reduction in operating costs resulted in part from a recent reduction of 24 employees from the Company's Simmons(R) distribution facility in Thomasville, Georgia, its assembly plant in Tijuana, Mexico, and its corporate headquarters in Irvine, California. These actions eliminated 21 management and support level functions and three vice presidents of sales.

The Company also reported the planned closure and consolidation of its Coronado(R) Instruments manufacturing and distribution facility in Tucson, Arizona, which will result in an additional estimated decrease of $800,000 in annualized operating costs. This consolidation will eliminate 16 employees by August 31, 2006. All Coronado operations are being consolidated into the Company's Irvine facility, with no associated increase in SG&A expense expected for that facility.

Meade Instruments will continue to employ more than 350 full-time employees worldwide for the manufacturing and distribution of its products.

Steve Muellner, President and Chief Executive Officer of Meade, stated, "One of my first objectives upon joining Meade in May of this year was to comprehensively assess the Company's overall operating cost structure and balance of internal resources. The consolidation of the Coronado operations and the workforce reductions are the first in a series of prudent initiatives we will implement in order to reduce our operating expenses.

"As we continue to work on rightsizing our operations, we are also focusing on new strategic initiatives such as the recent sales force reorganization aimed at increasing penetration in new and existing markets. Overall, our team is making significant progress. Execution on our sales and operating strategies coupled with the favorable impact of our newly implemented cost control initiatives will be key to building a platform for resumed profitability."

ABOUT MEADE INSTRUMENTS

Meade Instruments is a leading designer and manufacturer of optical products including telescopes and accessories for the beginning to serious amateur astronomer. Meade offers a complete line of binoculars that address the needs of everyone from the casual observer to the serious sporting or birding observer under the Meade(R), Simmons(R) and Bresser(R) brand names. Meade also offers a complete line of riflescopes under the Simmons(R), Weaver(R) and Redfield(R) brand names. The company distributes its products worldwide through a network of specialty retailers, mass merchandisers and domestic and foreign distributors. Additional information on Meade is available at www.meade.com.

"Safe-Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release contains comments and forward-looking statements based on current plans, exceptions, events, and financial and industry trends that may affect the Company's future operating results and financial position expectations. Such statements, including the expected annualized savings from the facility consolidation and workforce reduction, the consolidation of the Coronado operations into the Irvine facility with no increase in SG&A expense, and the improved profitability resulting from the Company's cost control initiatives involve risks and uncertainties which cannot be predicted or quantified and which may cause future activities and results of operations to differ materially from those discussed above. Such risks and uncertainties include, without limitation: the Company's ability to execute its business plans and initiatives. For additional information, refer to the Company's filings with the Securities and Exchange Commission, including the Company's most recent quarterly and annual reports on Forms 10-Q and Form 10-K.