Smith & Wesson® Announces Vertical Integration of Precision Plastic Molding Supplier

 Smith & Wesson® Announces Vertical Integration of Precision Plastic Molding
                                   Supplier

- Transaction Expected to Be Accretive to Smith & Wesson Gross Margins and
Earnings

- Closing Expected in May 2014

PR Newswire

SPRINGFIELD, Mass., March 24, 2014

SPRINGFIELD, Mass., March 24, 2014 /PRNewswire/ -- Smith & Wesson Holding
Corporation (NASDAQ Global Select: SWHC), a leader in firearm manufacturing
and design, today announced that it has signed a definitive agreement pursuant
to which Deep River Plastics, LLC ("Deep River Plastics"), a newly formed,
wholly owned subsidiary of Smith & Wesson, will purchase substantially all of
the net assets of Tri Town Precision Plastics, Inc. ("TTPP"), a provider of
custom injection molding services, rapid prototyping, and tooling, and a key
polymer supplier to Smith & Wesson. The transaction is expected to close
around May 5, 2014, subject to certain conditions.

TTPP has been a long-standing supplier of polymer frames and related
components for a large number of Smith & Wesson firearms, including nearly all
of its popular M&P models. As a result, approximately two-thirds of TTPP's
recent revenues have been generated by sales to Smith & Wesson. Other
industries that TTPP serves include the medical, general industrial,
aerospace, communications, automotive, and defense industries.

James Debney, President and Chief Executive Officer of Smith & Wesson, said,
"We are pleased about today's announcement, which supports our strategic focus
on our M&P firearm business and is highly beneficial to our company in several
ways. Polymer injection molding represents a significant element of our
production process. Acquiring this capability allows us to vertically
integrate a key component of our manufacturing operations with increased
flexibility, and is expected to thereby lower our production costs and reduce
risk within our supply chain. In addition, we believe that the acquired
technology will play an important role in enhancing our new product
development process by providing our team with internal access to the tools
and processes that will allow them to more quickly and efficiently explore,
develop, and test new product concepts."

Jeffrey D. Buchanan, Executive Vice President and Chief Financial Officer of
Smith & Wesson, stated, "We are analyzing this asset purchase as similar to a
capital expenditure, and it is expected to be accretive in our fiscal 2015
with a positive impact on gross margin of 70 to 90 basis points and an
increase in earnings of approximately $0.04 to $0.05 per fully diluted share,
resulting in a planned payback of approximately four to five years. The
incremental sales to non-Smith & Wesson customers in fiscal 2015 are expected
to be minimal, representing approximately $7 million to $9 million. As a
result of our strong balance sheet, we intend to complete the asset purchase
with cash on hand."

The agreement provides for Deep River Plastics to acquire substantially all of
the net assets of TTPP for approximately $23 million in cash. The company
operates a state-of-the-art operation in 95,000 square feet of manufacturing
space that incorporates 45 injection molding machines and complete
tool-building capabilities.

About Smith & Wesson

Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC) is a
U.S.-based leader in firearm manufacturing and design, delivering a broad
portfolio of quality firearms, related products, and training to the global
military, law enforcement, and consumer markets. The company's brands include
Smith & Wesson®, M&P® and Thompson/Center Arms™. Smith & Wesson facilities are
located in Massachusetts and Maine. For more information on Smith & Wesson,
call (800) 331-0852 or log on to www.smith-wesson.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, which provides a "safe
harbor" for such statements in certain circumstances. The forward-looking
statements include statements or expectations regarding the terms and timing
of the final acquisition of the net assets of TTPP; our belief that this
acquisition supports our strategic focus on our M&P firearm business and is
highly beneficial to our company in several ways; our expectation that the
acquisition of this capability will allow us to vertically integrate a key
component of our manufacturing operations with increased flexibility and will
lower our production costs and reduce risk within our supply chain; our belief
that the acquired technology will play an important role in enhancing our new
product development process by providing our team with internal access to the
tools and processes that will allow them to more quickly and efficiently
explore, develop, and test new product concepts; our expectation that this
acquisition will be accretive in fiscal 2015 with a positive impact on gross
margin and an increase on earnings, resulting in a planned payback of
approximately four to five years; our expectation that incremental sales to
non-Smith & Wesson customers in fiscal 2015 will be minimal; and our intention
to complete the asset purchase with cash on hand. These statements are based
on current expectations, estimates, projections, beliefs, and assumptions of
our management. Such statements involve significant risks and uncertainties.
Actual events or results could differ materially from those discussed in the
forward-looking statements as a result of various factors, including, but not
limited to, difficulties in integration of TTPP operations; loss of key
personnel; loss of other customers; and other factors discussed in greater
detail in our filings with the Securities and Exchange Commission (SEC). You
are cautioned not to place undue reliance on such statements and to consult
our SEC filings for additional risks and uncertainties that may apply to our
business and the ownership of our securities. Our forward-looking statements
are presented as of the date made, and we disclaim any duty to update such
statements unless required by law to do so.

Contact: Liz Sharp, VP Investor Relations
Smith & Wesson Holding Corporation
(413) 747-3304
lsharp@smith-wesson.com

SOURCE Smith & Wesson Holding Corporation

Website: http://www.smith-wesson.com
 
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