RNHDA Reinhold Industries CL A (MM)

Reinhold Industries, Inc. Announces Sale of Bingham Business Unit SANTA FE SPRINGS, Calif., Dec. 22 /PRNewswire-FirstCall/ -- Reinhold Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs, California, announced today that on December 17, 2004, Samuel Bingham Enterprises, Inc., a wholly-owned subsidiary of Reinhold Industries, Inc., sold certain assets and transferred certain liabilities to Finzer Roller, L.L.C. for $3.127 million cash, subject to post-closing adjustments. The assets sold included accounts receivable, inventories, prepaid expenses, equipment, real property, tangible personal property, intellectual and other intangible property. Liabilities transferred include accounts payable, accrued expenses and defined benefit pension plan obligations. The purchase price will be adjusted based on the computation of closing date working capital. "When we purchased Bingham in 2000, our strategy was to use this commercial business as a balance against our heavy reliance on the defense industry," said Michael T. Furry, President and CEO. "We made significant investments in infrastructure and human resources in order to improve quality and safety. We closed unprofitable locations and identified niche opportunities to generate higher margins. However, during these last four years, the roller marketplace has contracted and pricing competition among the remaining manufacturers has intensified. We felt that given the continuing challenges in this industry, our shareholders would be better served by selling Bingham. I wish the Finzer family the best of luck in the future." Reinhold Industries, Inc. is a manufacturer of advanced custom composite components and sheet molding compounds for a variety of applications in the United States and Europe. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS To the extent the Company makes certain "forward-looking statements" in this press release, such as statements about future plans, goals and other events which have not yet occurred, such statements are intended to qualify for the safe harbors from liability provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified because they include words such as the Company "believes," "anticipates," "expects" or words of similar import. These forward-looking statements involve risks and uncertainties and the actual results could differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, without limitation, risks associated with levels of U.S. and foreign military spending, currency fluctuations and the financial condition of the airline industry. You should consider these risks and factors and the impact they may have when you evaluate these forward-looking statements. These statements are based only on the Company's knowledge and expectations on the date of this press release. The Company disclaims any duty to update these statements or other information in this press release based on future events or circumstances. DATASOURCE: Reinhold Industries, Inc. CONTACT: Judy Sanson of Reinhold Industries, Inc., +1-562-944-3281

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