Keller Enters into a Settlement Agreement with the Pension Benefit Guaranty Corporation in Connection with Termination of Pension Plan

Business Wire, Dec 21, 2007

LOUISVILLE, Ky. -- The Keller Manufacturing Company, Inc., an Indiana corporation ("Keller") (Pink Sheets: KMFI), announced today that it has entered into a settlement agreement with the Pension Benefit Guaranty Corporation ("PBGC") in connection with the termination of The Keller Manufacturing Company, Inc. Employees' Pension Plan (the "Plan"). Keller had previously filed notice and was in negotiations with the PBGC seeking what is known as a "distress termination" of the Plan.

The Plan was terminated on July 26, 2006. The PBGC became trustee of the Plan on June 29, 2007 and announced that it had assumed responsibility for the Plan's unfunded liabilities on July 13, 2007. On December 21, 2007, Keller entered into a settlement agreement with the PBGC settling all liabilities of Keller and its subsidiaries with respect to the Plan. Under the settlement agreement Keller will pay the PBGC $400,000. The settlement agreement and the termination of the Plan will have no impact on most Plan participants who will continue to receive the benefits they are entitled to receive under the Plan subject to limitations on the maximum amount of benefits under federal pension law.

"Keller is extremely pleased with this settlement agreement. It will now allow the company and its subsidiary, Paragon Door Designs, Inc., a Kentucky corporation ("Paragon"), to begin focusing on future growth," said Ron Humin, Chairman and President of Keller. Keller acquired 85.3% of the equity interest of Paragon on January 9, 2006.

The news release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements may include statements regarding the intent, belief or current expectations of the Company or its officers with respect to (i) the termination of the Company's employee pension plan, (ii) the Company's strategic plans, (iii) the policies of the Company regarding capital expenditures, dividends, financing and other matters, and (iv) industry trends affecting the Company's financial condition or results of operations. Readers of this news release are cautioned that reliance on any forward-looking statement involves risks and uncertainties. Although the Company believes that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or nonoccurrence of future events. There can be no assurance that the forward looking statements contained in this news release will prove to be accurate. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved.