Tecumseh Products Company Announces the Relocation of Its Global Headquarters to the Ann Arbor, MI Area


TECUMSEH, Mich., March 12, 2008 (PRIME NEWSWIRE) -- Tecumseh Products Company (Nasdaq:TECUA) (Nasdaq:TECUB) ("Tecumseh" or the "Company") today announced that as part of its ongoing initiative to build a world-class, global compressor company, the corporate, sales and engineering functions currently located in Tecumseh, Michigan will be moved to the Valley Ranch Business Park in Pittsfield Township, near Ann Arbor. The move will commence in June, with the majority of corporate functions moved by July and the balance completed by the end of the year.

Several location scenarios were considered before concluding that the Pittsfield Township location was the best and most cost effective solution. One of the many positive factors of this location includes its proximity to a major hub airport, allowing much more convenience for visiting customers, suppliers and employees. The relocation will impact approximately 200 people and is anticipated to be relatively cost neutral. The new location provides the Company with advantages in attracting talented people with international experience, while still being close enough to allow it to retain its current talent base.

Ed Buker, Tecumseh's Chairman, President and Chief Executive Officer, said, "Tecumseh Products Company has had a long and historically successful stay in the city of Tecumseh, Michigan, and I am grateful for the relationship we have had with the city and Lenawee County over the years. Much of the logic for remaining in Tecumseh has been predicated on the emphasis in local manufacturing and on regional markets. With the previously announced mid-year closure of its manufacturing operation and with the current focus on global sales, engineering and corporate activities, the Tecumseh location becomes less compelling for us in the future. On behalf of all the employees and retirees of Tecumseh Products Company, I would like to again thank our civic partners and citizens in the Tecumseh community for their support over the last seventy-five plus years."

About Tecumseh Products Company

Tecumseh Products Company is a full-line independent global manufacturer of hermetic compressors for residential and commercial refrigerators, freezers, water coolers, dehumidifiers, window air conditioning units and residential and commercial central system air conditioners and heat pumps.

The Tecumseh Products Company logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4364

CAUTIONARY INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provision created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of the Company. Forward-looking statements can be identified by the use of terms such as "expects," "should," "may," "believes," "anticipates," "will," and other future tense and forward-looking terminology. Readers are cautioned that actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to i) the success of our ongoing effort to bring costs in line with projected production levels and product mix; ii) the extent of any business disruption that may result from the restructuring and realignment of our manufacturing operations or system implementations, the ultimate cost of those initiatives and the amount of savings actually realized; iii) the ability of the Company to maintain adequate liquidity in total and within each foreign operation; iv) financial market changes, including fluctuations in interest rates and foreign currency exchange rates; v) availability and cost of materials, particularly commodities, including steel, copper and aluminum, whose cost can be subject to significant variation; vi) weather conditions affecting demand for air conditioners; vii) the ultimate cost of resolving environmental and legal matters; viii) changes in business conditions and the economy in general in both foreign and domestic markets; ix) potential political and economic factors that could adversely affect anticipated sales and production in Brazil; x) potential political and economic factors that could adversely affect anticipated sales and production in India, including potential military conflict with neighboring countries; xi) the effect of terrorist activity and armed conflict; xii) economic trend factors such as housing starts; xiv) the effect of any business disruption caused by work stoppages initiated by organized labor unions; xiv) emerging governmental regulations; xv) increased or unexpected warranty claims; xvi) actions of competitors; xvii) our ability to profitably develop, manufacture and sell both new and existing products; and xviii) the ongoing financial health of major customers. The forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Press releases and other investor information can be accessed via the Investor Relations section of Tecumseh Products Company's Internet web site at http://www.tecumseh.com.



            

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