Fedders
Announces Agreement in Principle with Noteholders
and Senior Lender Waiving Defaults Related
to Delayed Filings
CONTACT:
Robert Laurent, Jr.
(908-604-8686)
investorrelations@fedders.com
LIBERTY
CORNER, New Jersey -- August 31, 2005
-- Fedders Corporation (NYSE: FJC) (the "Company"),
a leading global manufacturer of air treatment
products, including air conditioners, air cleaners,
dehumidifiers and humidifiers, and thermal technology
products, announced today that it has reached
an agreement in principle with holders representing
more than a majority in principal amount of
Fedders North America's $155 million principal
amount of 9-7/8% Senior Notes due 2014 (the
"Senior Notes") on a waiver of the
existing event of default under the Senior Notes.
The event of default results from the Company's
failure to timely file its Form 10-K for the
year ended December 31, 2004, as previously
announced on June 30, 2005, and other defaults
resulting from its failure to timely file its
subsequent quarterly reports. The Company has
also reached agreement in principle with its
senior lender with respect to the waiver under
the Senior Notes and a waiver of the default
under its agreement with the senior lender,
also related to the failure to timely file the
Form 10-K and subsequent quarterly reports.
Both agreements are subject to completion of
final documentation and there can be no assurance
that the Company will reach a final agreement
with the holders of the Senior Notes and the
Company's senior lender.
The
Company will not make the September 1, 2005
interest payment due on its Senior Notes until
final documentation concerning the waiver is
completed with the holders of the Senior Notes.
The Company intends to make the interest payment
promptly following receipt of the requisite
waiver.
In
connection with reaching agreement in principle
with the holders of the Senior Notes, the Company's
Board of Directors did not declare quarterly
dividends on the Company's Series A Cumulative
Preferred Stock, Common Stock or Class B Stock
which ordinarily would be paid on September
1, 2005.
This
news release includes forward-looking statements
that are covered under the "Safe-Harbor"
clause of the Private Securities Litigation
Reform Act of 1995. Such statements are based
upon current expectations and assumptions. Actual
results could differ materially from those currently
anticipated as a result of known and unknown
risks and uncertainties including, but not limited
to, weather and economic, political, market
and industry conditions and reliance on key
customers. Such factors are described in Fedders'
SEC filings, including its most recently filed
annual report on Form 10-K. The company disclaims
any obligation to update any forward-looking
statements to incorporate developments occurring
after release of announcement. Visit the Fedders
investor information website at http://www.fedders.com
to access additional information on Fedders.
###
BUY 
OWNERS CENTRAL 
