On August 22, 2007, Fedders and its North American operations filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code.

Fedders’ non-North American subsidiaries, which include operations in China, India, the Philippines, Germany, and the United Kingdom, were not included in the filing.

In addition to the filing, the company announced that it will retain an investment bank to explore strategic alternatives for all of its business units, including possible sales. The company is prepared to reorganize around its businesses and emerge from chapter 11 protection with a new business plan, should the expected proceeds of a sale not bring sufficient value.

Our chapter 11 reorganization is well financed and part of a carefully considered plan that management believes is backed by sufficient liquidity. We intend to utilize the chapter 11 process in order to preserve the value of the Company and complete the transformation plan designed to restructure the Company and return it to profitability.

During the restructuring period, Fedders’ operations will continue. We will maintain our commitment to providing quality products and superior service to our customers. Vendors will be paid for all goods furnished and services rendered subsequent to the filing, and transactions that occur in the ordinary course of business will continue as before. Employees will be paid their normal wages and benefit programs will continue.

We encourage you to explore this section of our website and check it regularly for updates on our reorganization.