SOURCE: Aldila, Inc.

Aldila, Inc.

November 16, 2010 16:15 ET

Aldila Announces Non-Binding Letter of Intent to Acquire Assets of Victory Archery

POWAY, CA--(Marketwire - November 16, 2010) - ALDILA, INC. (OTCQX: ALDA) (PINKSHEETS: ALDA) announced today that it has signed a non-binding letter of intent to acquire the assets of the Victory arrow business ("Victory") from Miramar Strategic Ventures, LLC ("MSV") in a cash and stock transaction targeted to close by December 31, 2010.

"We have been interested for a number of years in the branded carbon arrow industry because of its potential in offering unique synergies to our business model," said Peter R. Mathewson, Chairman and CEO of Aldila, Inc. "The Victory brand is very well regarded and is positioned for growth. Aldila, a vertically integrated manufacturer, will be able to apply its world class expertise in high volume production of carbon fiber based tubular structures with its own produced raw materials. This will be a point of differentiation and competitive advantage. No other arrow brand currently offers total control of the manufacturing experience, producing its own raw material and producing arrows in its own factory. This has been the business model we have used successfully for many years in our market leading graphite golf shaft business," Mr. Mathewson said.

"For years, Victory has designed and constructed the world's finest carbon fiber arrows," said Marty Connolly, President and CEO of MSV, the holding company of Victory. "We look forward to combining their expertise with our own to bring even more, high performance products to the archery market. Aldila is a leader in the composite industry and is the leading name in graphite golf shafts. They stand out from most other manufacturers in that they also produce their own composite prepreg materials. This unique vertical integration means Aldila has complete control over finished product quality," Mr. Connolly said.

"The Aldila acquisition of Victory will have a major impact on the carbon arrow and archery markets," said Bill Gartland, President of William J. Gartland & Associates, a leading sales representative group dedicated to the archery industry. "Aldila has been a pioneer in the composites industry for 38 years. They bring expertise in composite part engineering and manufacturing, including production of their own composite materials. These advantages will provide bow hunters and archers outstanding products now and in the future. William J. Gartland & Associates is proud to be affiliated with Aldila and their acquisition of Victory," Mr. Gartland said.

This press release contains forward-looking statements based on our expectations as of the date of this press release. These statements necessarily reflect assumptions that we make in evaluating our expectations as to the future. Forward-looking statements are necessarily subject to risks and uncertainties. Our actual future performance and results could differ from that contained in or suggested by these forward-looking statements as a result of a variety of factors. Our filings with the Securities and Exchange Commission and OTC Disclosure and News Service present a detailed discussion of the principal risks and uncertainties related to our future operations, in particular our Annual Report on Form 10-K for the year ended December 31, 2009, under "Business Risks" in Part I, Item 1, and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in Part I, Item 7 of the Form 10-K, and reports on Form 10-Q and Form 8-K, all of which can be obtained at www.sec.gov. Our future filings will be included on the OTCQX U.S. Premier website, which can be found at www.otcqx.com.

Aldila is a leader among manufacturers of high performance graphite golf shafts used in clubs assembled and marketed throughout the world by major golf club companies, component distributors and custom clubmakers. Aldila also manufactures composite prepreg material for its golf shaft business and external sales.

Contact Information

  • Investor/Media Contacts:
    Scott M. Bier
    Vice President, Chief Financial Officer
    Sylvia J. Castle
    Investor Relations
    (858) 513-1801