KMFI Keller Manufacturing Company Inc (PK)

The Keller Manufacturing Company, Inc. ("Keller" or "KMFI.PK") (Pink Sheets:KMFI) announced today that it acquired Louisville-based Paragon Door Designs, Inc. ("Paragon"). Keller acquired an 85% equity interest in this light-manufacturing business for $1,140,000 in cash on January 6, 2006. Founded in 1993, Paragon offers custom steel and fiberglass residential entry doors and storm doors with a variety of glass styles and finishes. Paragon sells through a network of window and door dealers, remodelers, and home improvement companies in 20 states. Paragon has 27 employees and has been profitable for many years with $3.9 million of sales in 2005. Paragon Founder, President, and Chief Executive Officer David N. Burks, an industry veteran with over 25 years of experience, will continue to serve as its President and Chief Executive Officer. Mr. Burks owns the balance of the equity not acquired by Keller. David T. Richardson, Keller President and Chief Executive Officer, plans to leave Keller and will not be employed by either company. Mr. Richardson plans to assist Paragon and the Keller Board via a consulting arrangement. According to Mr. Richardson, "The acquisition of Paragon represents the exact type of transaction we looked for during 2005. I believe Paragon is a very good fit for Keller and I am impressed with its founder and leader, David Burks." Mr. Burks added, "I am very pleased to have Keller as an equity partner in Paragon and I look forward to leading and growing Paragon for many years." For more information about Paragon please visit www.paragondoor.com. In January of 2005, Keller announced that it was exiting all furniture operations and would begin a search for a new operating business. In December of 2005, Keller announced that it had signed a non-binding letter of intent to acquire a local light-manufacturing business but did not identify the acquisition target, pending due diligence and financing. Begun in 1885 by German immigrants in Corydon, Indiana, Keller has demonstrated an uncommon ability to successfully evolve and adapt to changing business conditions. Originally, Keller produced wood spokes for farm wagons, then complete wheels by 1901, and later the entire wagon under contract with the International Harvester Company. With the introduction of the motorized metal farm tractor following the Depression era, Keller converted its production to household furniture while also manufacturing walk-in ice boxes for U.S. Army camp kitchens during the Second World War and producing army vehicle bodies for General Motors. Following the war, Keller resumed its entry into home furnishings and grew to become one of the nation's leading manufacturers of solid wood bedroom, dining room, and occasional furniture until exiting that business in early 2005 due to low-cost import competition from Asia. For more information about Keller please visit www.kellerfurniture.com. The news release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements may include statements regarding the intent, belief or current expectations of the Company or its officers with respect to (i) the Company's strategic plans, (ii) the policies of the Company regarding capital expenditures, dividends, financing and other matters, and (iii) industry trends affecting the Company's financial condition or results of operations. Readers of this news release are cautioned that reliance on any forward-looking statement involves risks and uncertainties. Although the Company believes that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or nonoccurrence of future events. There can be no assurance that the forward looking statements contained in this news release will prove to be accurate. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved.