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The Eastern Co. Issues Letter to Holders Related to '15 Annual Holder Meeting

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The Eastern Company (NASDAQ: EML) today sent a letter to its shareholders in connection with the 2015 Annual Meeting of Shareholders.

The full text of the letter is below:

May 13, 2015

Dear Fellow Eastern Company Shareholder:

WE ARE PLEASED THAT INSTITUTIONAL SHAREHOLDER SERVICES INC. ("ISS") SUPPORTS THE ELECTION OF THE EASTERN COMPANY'S HIGHLY QUALIFIED AND EXPERIENCED DIRECTOR NOMINEES, AND WE URGE YOU TO VOTE THE BLUE PROXY CARD IN FAVOR OF OUR NOMINEES – SAMANTHA ALLISON AND DAVID C. ROBINSON.

ISS, the leading independent proxy advisory firm, has concluded that Barington Companies Equity Partners, L.P. (together with certain of its affiliates, "Barington") has not made a compelling case in favor of electing Barington's nominees to Eastern's Board of Directors.

While Barington is spending valuable time and money on a proxy fight and a lawsuit against the Company, your Board remains focused on running the Company, exploring strategic alternatives with the assistance of its financial advisor, Wells Fargo Securities, succession planning and improving corporate governance. In one-on-one conversations we have listened to what shareholders have had to say about these important topics. Our nomination of Samantha Allison is just the beginning of positive change at the Company – we are also exploring a variety of near-term improvements to our corporate governance. We expect to be able to update shareholders on these improvements, as well as the results of our strategic review with Wells Fargo Securities, in the near future.

Let us be clear – this Board is willing and eager to work with shareholders who are genuinely focused on the Company's long-term future–not winning a proxy fight or looking for short-term gains–to make significant changes to its corporate governance (including further enhancing the Board with new independent directors with the background and experience to help management and the Board maximize value for all shareholders) and to move our Company forward. We strongly believe in the long-term value-creating potential of our Company– driven by our many strengths including our people, our products and our position in the markets we serve – and our management and Board are deeply committed to leveraging these strengths to provide the best returns for all of our shareholders.

On behalf of your Board of Directors and management team, we appreciate your continued support.

Sincerely,

The Board of Directors of The Eastern Company

YOUR BOARD URGES YOU TO SUPPORT THE EASTERN COMPANY AND ITS BUSINESS STRATEGY BY VOTING IN FAVOR OF THE BOARD'S NOMINEES USING THE BLUE PROXY CARD.

Eastern Nominees: The Better Choice for ALL Shareholders

SAMANTHA ALLISON
Ms. Allison has 25 years of professional experience, including global industrial and manufacturing experience, and a proven track record of working constructively with the boards and management teams of publicly traded companies to help improve their operations, strategic focus, profitability and corporate governance.

DAVID C. ROBINSON
Mr. Robinson has been a director of Eastern since 1990, and his experience with the Company through both good and challenging times has enabled him to develop a deep understanding of our diverse product lines and businesses. With this unique perspective, Mr. Robinson brings continuity and a level of insight regarding the Company's strategy and growth opportunities.

Eastern's Nominees Represent a Promising Future for The Eastern Company and Its Shareholders

Eastern is on the right path for long-term growth
We have a track record of focusing our efforts on maximizing profit and producing cash flows to adequately fund new product development, efficiency improvements and dividend payouts
We have retained the services of Wells Fargo Securities to assist in our evaluation of strategic opportunities
Areas of opportunity for Eastern include lightweight composite panels, vehicular hardware, and safety and security products, which have emerged over the last few years as major needs in the United States
We are a nearly 160-year-old New England Company with enduring core values
Barington Nominees, James A. Mitarotonda and Michael A. McManus, Jr., Will NOT Add Value to the Company

Barington has not presented an actionable strategic plan for the Company
Mr. Mitarotonda is over-extended
Mr. McManus has close ties with both Barington and Mr. Mitarotonda
Eastern's nominees are better qualified to provide the strategic guidance and corporate governance that the Company's shareholders deserve
VOTE THE BLUE PROXY CARD TO SUPPORT THE EASTERN COMPANY

Barington is soliciting proxies for its nominees using a WHITE proxy card. Your Board DOES NOT endorse any Barington nominee.

Your Board urges you to disregard any WHITE proxy card or solicitation materials that may be sent to you by Barington.
If you have previously submitted a WHITE proxy card sent to you by Barington, your Board urges you to revoke that proxy by voting in favor of the Board's nominees by using the BLUE proxy card which accompanies this letter.
For more information about our nominees, voting instructions and other important information related to the 2015 Annual Meeting, please consult our definitive proxy statement and related proxy materials or call our proxy solicitor, Georgeson, Inc., toll-free at 888-549-6618. Further information about the 2015 Annual Meeting can also be found at www.eastern2015meeting.com.

If you have any questions or require any assistance with voting your shares, please contact the Company's proxy solicitor:

GEORGESON

Toll-free number: 888-549-6618
E-mail address: EasternCompany@georgeson.com

 

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