Susquehanna Pfaltzgraff Plans To Explore Sale of Susquehanna Media, Pfaltzgraff Subsidiaries

Susquehanna Pfaltzgraff Plans To Explore Sale of Susquehanna Media, Pfaltzgraff Subsidiaries

* Company seeks buyers for radio stations, cable television operations, pottery maker

* Decision reflects changes in corporate, family circumstances

YORK, Pa., April 20 /PRNewswire-FirstCall/ -- Susquehanna Pfaltzgraff Co. announced today that it intends to explore a sale of its major subsidiaries, Susquehanna Media Co. and The Pfaltzgraff Co. Susquehanna Media is a diversified communications company with significant operations in radio broadcasting and cable television, as well as interests in telephony and online software development. Pfaltzgraff is the oldest continuously operating pottery manufacturing company in the United States.

"This has been a difficult and carefully considered step," said Louis J. Appell, Jr., chairman of privately owned Susquehanna Pfaltzgraff Co. "The radio and cable operations and Pfaltzgraff have strong reputations and management teams, as well as hard-working, loyal employees. However, the passage of time has had a major impact on corporate and family circumstances, including the absence of a member of the younger generation inclined to assume a leading management role. Consequently, the family shareholders concluded that we have a responsibility to examine the potential strategic options for our businesses."

Appell added, "At this time, we have decided to initiate a sale process, at the conclusion of which we will determine if the offers yield a compelling value to our shareholders. Until then, our focus is on pursuing the business and growth plans we have established for 2005. Once buyers are identified and definitive agreements are negotiated, we will work to ensure smooth transitions to new ownership.

"In the interim," he added, "all involved -- customers, listeners, subscribers, suppliers, employees and the communities we serve -- can be assured that our business philosophy, culture and commitment to quality, service and value will not change."

William H. Simpson, president and CEO of Susquehanna Pfaltzgraff, said, "We recognize that changes in ownership may potentially have an adverse impact for some of our employees. We are deeply committed to treating employees fairly and with compassion. We will offer severance, re-employment assistance and other benefits to those whose positions may be eliminated as a result of possible sales. Employees will learn more about these programs very soon."

Simpson added that the company is approximately one-quarter owned by employees through an Employee Stock Ownership Plan (ESOP). He also noted that the company's real estate activities will continue, as will the charitable giving activities of the Susquehanna Pfaltzgraff Foundation.

The company has retained UBS Investment Bank to manage the sale of Susquehanna Media Company, and Sawaya & Segalas & Co. LLC to manage the sale of The Pfaltzgraff Company.

About Susquehanna Media Co.

Susquehanna Media is comprised of Susquehanna Radio Corp., one of the largest radio broadcasting companies in the United States with 33 stations in eight markets; Susquehanna Communications, a multi-system owner/operator of cable television systems in six states; BlazeNet, a York, Pa.-based Internet Service Provider and Susquehanna Technologies (SusQtech), an e-business solutions provider in Winchester, Va.

About The Pfaltzgraff Co.

Six generations of family ownership and management have led The Pfaltzgraff Co. to become America's leading manufacturer and marketer of casual dinnerware and accessories for the home. As the oldest pottery maker in the United States, The Pfaltzgraff Co. grew from a modest-size shop that once produced salt-glazed stoneware in the early 1800s to a large manufacturer that offers a full range of products and styles today.

About Susquehanna Pfaltzgraff Co.

Susquehanna Pfaltzgraff is a privately owned company based in York, Pa. It operates three primary subsidiaries: Susquehanna Media Co., The Pfaltzgraff Co., and Susquehanna Real Estate.

Source: Susquehanna Pfaltzgraff Co.

CONTACT: William Simpson of Susquehanna Pfaltzgraff Co., Marsha Everton of The Pfaltzgraff Co., David Kennedy of Susquehanna Media Co., +1-717-848-5500

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