Smith & Wesson closes Arizona offices, changes board of directors

Smith & Wesson Holding Corp., the parent company of Smith & Wesson Corp., announced in January it is closing its principal executive offices in Scottsdale, Ariz., and transferring executive operations to its primary facility in Springfield, Mass. The changes began early this month and are expected to be completed during the first quarter of 2004.

Roy Cuny, a member of the board of directors, president and CEO, indicated the move is designed to streamline operations and locate the corporation's principal executive offices in the same location as its manufacturing facility.

Cuny said the move would more effectively utilize corporate resources by consolidating the operations and focusing the company on the core firearms business.

According to corporation officials, Scottsdale employees were released as of January 31, with some designated key positions remaining through the end of this month. All personnel have been offered severance packages of varying levels, depending on tenure with the company. In addition, several individuals have been offered the opportunity to relocate to the Springfield facility.

The Holding Corp.'s board also announced changes in composition of the board of directors. The board named James J. Minder as chairman of the board of Smith & Wesson Holding Corp. Minder was selected due to his status as an independent, outside director, in a proactive corporate governance action by the board in keeping with the intent of the Sarbanes-Oxley Act of 2002.

Cuny will continue as a member of the board of directors and as president and CEO of Smith & Wesson Holding Corp., and Smith & Wesson Corp.

In another board change, Jim Staudohar resigned as a director, as chairman of the audit committee and as a member of the nominations and compensation committees effective immediately. A search for Staudohar's replacement has been initiated. The Holding Corp. will file a Form 8-K Report with the SEC relative to the resignation.

The changes announced in January come on the heels of major changes announced in early December 2003. It was then that Cuny was named chairman, CEO and president of the Holding Corp. In addition, Mitchell A. Saltz resigned as the Holding Corp.'s chairman and CEO, Colt R. Melby resigned as president and Sherry L. Noreen resigned as secretary and as a member of the board of directors. Saltz and Melby remain as board members.

Bob Scott, who helped mastermind the return ownership of Smith & Wesson to America in 2001, is still a member of the board of directors for the Holding Corp.