01/24/2001    
Outboard Marine Corporation filed for Chapter 11 bankruptcy on December 22 and now is working under Bankruptcy Court supervision to complete the sale of its boat and engine operations. OMC believes that the best way to protect the long-term value of its brands, as well as the investment boaters and dealers have in them, is to complete the sales process as quickly as possible.

Prior to the filing, OMC closed all manufacturing and distribution facilities and reduced staffing to minimum operational levels. OMC is making every effort to provide customer support. However, the Company is not operating under normal business conditions. We ask for your patience as OMC works to complete the sale of its operations.

If you are considering the purchase of an OMC boat or engine brand, you should be aware that:

• While under Chapter 11, OMC is prohibited from paying warranty-related expenses. This applies to all warranties on product sold prior to and/or after the bankruptcy filing.

• OMC is not sponsoring the Stratos/Javelin World Championship tournament series, and all previously announced tournament dates have been cancelled.
  

• Parts and accessories are being sold to our dealers from existing inventories. Consumers may purchase parts and accessories only through authorized Johnson & Evinrude or OMC Boat Company dealers. OMC does not sell parts and accessories directly to consumers.

OMC understands that the conditions under which it must operate while in Chapter 11 bankruptcy place difficulties and burdens on its dealer and end-user customers. OMC believes that the best way to protect the integrity of its brands is to sell them as expeditiously as possible to new, financially sound owners.

Bankruptcy Court Approves Process
For the Sale of OMC’s Operations
The following is a brief outline of the sales process as approved by the US Bankruptcy Court.

• January 26 – Deadline for submission of all sealed bids

• February 2 – Announcement of successful sealed bidders

• February 5 – Open auction where additional bids may be submitted

• February 8, 9 & 12 – Court hearing where bankruptcy court will determine the new owners of OMC’s operations

OMC expects the closing process to follow shortly thereafter. The first sales of operations could be completed by the end of February.

OMC is a proud company with a heritage dating back to the invention of the gasoline outboard by Ole’ Evinrude in 1909. While the name Outboard Marine Corporation may disappear with the conclusion of the Chapter 11 bankruptcy process, the names of OMC’s world-renowned brands – Johnson, Evinrude, Ficht Ram Injection, Four Winns, Chris-Craft, Seaswirl, Hydra-Sports, Lowe, Princecraft, Stratos and Javelin – will live on.

OMC thanks you for your patience and understanding through this difficult process.