| 05/10/2002 | Huffy Corporation announced it and seven other companies (Aerojet General Corporation, Azusa Land Reclamation Co. Inc., Fairchild Holding Corp., Hartwell Corp., Oil & Solvent Process Co., Reichold, Inc. and Wynn Oil Co.) designated by the USEPA as potentially responsible parties (PRPs) with respect to claims for contamination of groundwater in the Baldwin Park operable unit of the San Gabriel Valley Superfund site have signed a comprehensive agreement with numerous water entities to clean up the water. The USEPA alleged that Huffy's former bicycle facility located in Azusa, California, which was sold in 1982, contributed to the groundwater contamination. The clean up agreement was signed on March 28, 2002. The agreement became effective May 9, 2002, following approval by the Los Angeles County Superior Court responsible for adjudicating water rights in the valley.
Don R. Graber, Chairman, President and Chief Executive Officer, commented, "This settlement represents over a decade of work by the Corporation and the other signatory PRPs. We are pleased to have reached agreement with the various water entities that are parties to the agreement and the other signatory PRPs to provide clean drinking water. The clean up agreement resolves the Corporation's only material superfund liability and brings definition to the cost of the clean up, a previously undefined liability."
Mr. Robert W. Lafferty, Vice President - Finance, Chief Financial Officer and Treasurer stated, "The liability reflected in the clean up agreement is fully reserved and the costs contemplated to be incurred will have no impact on earnings. While the entire remediation of the water will be costly, the majority of that cost is the result of contamination by chemicals that are a residue of rocket fuel which were not used by the Corporation. In addition, the Corporation along with the other signatory PRPs will be seeking contribution from other non-signatory PRPs."www.huffy.com
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