Sub-Zero PreservationWolf

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Sub-Zero Realigns Manufacturing

Contact:

Chuck Verri
Sub-Zero and Wolf
608.270.3214
chuck.verri@subzero.com

MADISON, WI (August 31,2010) – Sub-Zero, Inc. announced today the transfer of approximately 100 jobs to Arizona in a move to streamline production and consolidate manufacturing for the Madison-based appliance company.

The transfer of work will result in the elimination of those 100 positions in Madison. Employees in those positions will be reviewed for hiring preference in other available positions within Sub- Zero and its affiliate company, Wolf Appliance, Inc. Affected employees will be offered severance packages and outplacement services.

“Madison and Fitchburg are home to our corporate offices and the majority of production for our two companies. The move of these production jobs and the service parts area is meant to make us more efficient and cost effective at producing the finest appliances without compromising quality,” said Chuck Verri, vice president of Human Resources.

The company is acquiring a 440,000 manufacturing facility in Goodyear, AZ, a western suburb of Phoenix. Sub-Zero currently operates a 165,000 square foot facility in Phoenix that produces its integrated line of refrigeration along with the wine storage and undercounter refrigeration. The Goodyear facility is meant to handle production of a new line of refrigeration the company intends to introduce. The company also has a new 80,000 square foot manufacturing facility in Richmond, Kentucky.

The move directly affects approximately 100 employees who manufacture the company’s WS- 30 wine storage unit and its PRO48 model of built-in refrigeration. This production will move the fourth quarter of next year to the Phoenix location. Also scheduled to move to Arizona are the jobs that handle the companies’ service parts, sales accessories and the service cell that produces non-current model service parts. These functions will move to Arizona in the second quarter of 2012.

“We are committed to keeping our manufacturing in the United States,” Verri stated, “but we must continuously look at more efficient ways to produce our appliances to stay competitive. Many of our competitors are moving to Mexico or offshore in an effort to drive costs out of their products.”

Sub-Zero is a 65-year old company that acquired Wolf Gourmet in 2000. Both companies are regarded as industry leaders in the premium appliance market. Since 2000 the companies have added more than one million square feet of advanced production facilities in Madison.

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About Sub-Zero and Wolf
Sub-Zero, Inc., is the leading manufacturer of American-made luxury refrigeration, freezers and wine storage units and it leads in product design with its built-in and integrated lines. Founded in 1945, Sub- Zero is a privately held company in its third generation of family ownership. Headquartered in Madison, WI, Sub-Zero also operates a manufacturing facility in Phoenix, AZ. Specializing in food preservation, Sub-Zero pioneered the concept of dual refrigeration and prides itself on being the first company to store frozen foods at ultralow, “sub-zero” temperatures. Wolf Appliance, Inc., is the premier maker of ranges, ovens, cooktops and grills and was among the first to introduce the convection oven into the residential market. It is based in a state-of-the-art production facility in Fitchburg, WI. Both Sub-Zero and Wolf products are available throughout the United States and internationally. For more information about Sub-Zero and Wolf, please visit subzero.com or wolfappliance.com.

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