At the Special Meeting of the Shareholders of Hammond Manufacturing Company Limited, held today December 8, 2000, the shareholders approved the Plan of Arrangement to implement the re-organization of the Company effective January 1, 2001.

The Plan of Arrangement provides for the spin-off of the dry-type transformer business into a newly incorporated public company, Hammond Power Solutions Inc. ("Hammond Power" or "HPSI"), for which a listing application has been made to the Toronto Stock Exchange. This transaction will effect the separation of Hammond’s businesses into two distinct, publicly-traded companies. As a result, Hammond shareholders will retain their shareholdings in Hammond Manufacturing Company Limited, which will carry on the enclosure and electronics business, and will receive an equal shareholding in Hammond Power Solutions Inc., which will carry on Hammond’s dry-type transformer business.

The re-organization will be implemented effective January 1, 2001,subject to certain conditions being fulfilled, including the receipt of a favourable advance ruling request from Canada Customs and Revenue Agency and the Final Order approving the Plan of Arrangement from the Ontario Superior Court of Justice.

Robert F Hammond, Chairman & CEO

Robert F. Hammond, Chairman and CEO
Tel: (519) 822.2960
Fax: (519) 822.8987
Email: ir@hammfg.com