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Manitex Announces $6.6 Million of New Orders, Restructuring Updates

Bridgeview, Ill.-based Manitex International has announced that the company has received orders for specialized material handling equipment for use by the international military, specialized transporters for shipyard applications, and boom truck cranes for the Middle East. The total value of these orders is approximately $6.6 million with delivery scheduled during 2009.

"We are pleased to have secured orders for our specialized material handling equipment which maintain our long standing position as a key supplier to the international military establishment,” said Bob Litchev, president of material handling operations for Manitex International. “The order for two shipyard transporters confirms Manitex Liftking as a leading player in this competitive global market."

"During the past 12 months we have allocated product development and sales resources towards specific growth markets, such as the Middle East, that are especially well suited to our product,” said Litchev. “The receipt of this order for delivery in the first half of this year is another step towards further penetration and growing market share outside North America. The order was secured through our recent acquisition, Crane and Machinery, which has become our center for international sales.”

The company also provided an update to the restructuring activities commenced in the third quarter of 2008. Andrew Rooke, Manitex International president and chief operating officer, commented, "Anticipating the impact of economic conditions and longer sales cycles, we determined that swift additional management action was necessary to ensure we balance operating activity with current demand levels. Since the end of the third quarter 2008, we have implemented across the board cost reduction activities that we estimate will yield approximately $5 million in annual expense reductions.

"Restructuring costs associated with these actions are expected to range between $200,000 and $300,000 with a portion of that being recognized in the fourth quarter of 2008 and the remainder in the first quarter of 2009. The specific actions taken to achieve these cost reductions comprise headcount reductions of salaried and hourly employees, virtual elimination of overtime, suspension of additional hires and merit increases, reduction in executive and salaried pay, bonus and benefits and the introduction of shortened workweeks. These actions, although difficult, are required to ensure the company adjusts to current conditions and is positioned to respond quickly when the market recovers. We have increased our focus on several new North American and international sales initiatives and supply chain cost reduction as we rigorously pursue continued market share gains, margin improvement and profitability."

Manitex International Inc. is a leading provider of engineered lifting solutions including cranes, rough terrain forklifts, indoor electric forklifts and special mission oriented vehicles, including parts support.


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