Standex Announces Expected Divestiture of Air Distribution Products Group

Standex International Corporation

today announced the expected divestiture of its Air Distribution Products Group. During the second quarter, management reached the decision to divest the Air Distribution Products Group. As a result of this decision and the expected sale, the Company is reporting the ADP segment as a discontinued operation. Results of the ADP segment in current and prior periods have been classified as discontinued in our financial statements to exclude the results from continuing operations. As a result of the expected divestiture, the Company will report a net loss from discontinued operations in the second quarter of $14.2 million, or $1.11 per diluted share, in order to reflect the carrying value of ADP at its net realizable value based on our estimate of the impact of the anticipated sale at December 31, 2011. The loss includes non-cash goodwill and real estate impairment charges, and other expected transaction costs, which include costs related to the withdrawal liability associated with certain multi-employer pension plans to which ADP is a party.