FOR IMMEDIATE RELEASE
February 1, 2005

Carolina Marking Devices’ Merger with Kinney Stamp & Engraving After Fourty Years of Competition...expected to put company among Southeast’s top five

Charlotte, NC - Two years ago at a national conference, Ada Shapiro, CEO of Carolina Marking Devices, said to Fred Kinney, President of Kinney Stamp & Engraving, upon sharing their company’s latest developments, “We might want to consider joining forces one day.” As of January 31, 2005, Carolina Marking Devices and Kinney Stamp & Engraving have merged after seven months of talks and negotiations, spawned by a call from Fred in early 2004 asking if Ada was serious when she mentioned it in passing those couple of years ago.

The companies have always been friendly competitors out of mutual respect and admiration as family-run businesses with staying power in an industry where goliath office supply operations have taken their toll on marking and engraving companies across the U.S. “We see this merger as a means of leveraging our strengths in unison to become an even bigger player on a national level,” states Ada Shapiro. “We have proven separately our ability to have longevity in the industry and see the joining of our forces opening immense opportunities in a variety of capability and market areas.”

Kinney Stamp & Engraving, Inc., also based in Charlotte, NC, brings to the operation an extensive assembly of innovative equipment for everything from digital large format printing to laser engraving and production. In addition, Kinney’s computerized order and inventory tracking system will be integrated into the Carolina Marking Devices plant of operations. According to Fred Kinney, the sales force behind Carolina Marking Devices brings real value to the capabilities Kinney brings to the merger. “We have never had the level of outside sales concentration that Carolina Marking Devices has had and have always considered their marketing model a key advantage in the industry,” says Kinney. “I am excited about what their sales force can do to get the expanded capabilities out into the marketplace on a national level.”

The merger is expected to capture the attention of the marking and engraving industry as the two entities have both been viewed as companies to watch for leadership and opportunities in a shrinking marketplace. Carolina Marking Devices was the first company to introduce the external sales force model back in 1963, resulting in sales expanding well beyond the confines of North and South Carolina. Kinney Stamp & Engraving has built a reputation as the company in the industry first to incorporate the latest technology and innovations, giving others an opportunity to determine the value of incorporating into their operations. Both companies boast an impressive loyal following of employees with tenures well beyond 20 years of service.

Executive Director of the International Marking and Identification Association, Gene Griffiths, considers the merger an excellent match between two progressive companies in the industry. “The two companies combined bring together the superior stamp manufacturing operation of Carolina Marking Devices with Kinney Stamp and Engraving’s advanced graphics and sign making capability,” states Griffiths. “These companies are two long-time players who have been active members of our association. It’s a good merger that will place Carolina Marking Devices among the top woman-owned marking and identification companies in our association and possibly the country, if not the largest.”

According to Griffiths, the merger itself is unique in that the two entities are within the same local marketplace. “Most mergers in our industry are larger companies acquiring companies across distance to open up an entire market region for their operations,” says Griffiths. “This merger between two good-sized companies is going to expand their national market reach through expanded capability versus geography.”

Already identified as the 16th largest woman-owned privately held company in the Charlotte region, the merger will result in moving Carolina Marking Devices within the top 10 woman-owned privately held companies in the Charlotte area. “With the average rubber stamp company having nine employees, we are already considered among the largest in the Southeast,” states Shapiro. The merger will bring a total of 58 office and plant personnel and 30 outside sales representatives together under one roof.

With combined sales for 2004 of over $3.4 million, the dual-family leadership remains conservative in making projections, though expect to see moderate growth initially with more expansive growth in the next 3-5 years. “We are fortunate that our current facility has the capacity to accommodate the equipment that will be added to our current operations,” states Shapiro. “We also have the ability to expand beyond our existing facility when the time is right.” The transition of equipment under one roof will occur over the next 30 days.

Carolina Marking Devices will remain as the newly merged company’s overall corporate identity. Ada Shapiro will remain as CEO and Chairman of the Board. Fred Kinney will join the ranks as a Senior Vice President. Other family members include Jeff Shapiro, Vice President of Operations, and Ron Kinney, who will join the entity as a Senior Manager.

Established in 1957, Carolina Marking Devices is a manufacturer of hundreds of custom and stock marking and identification products. The company produces rubber and Perma stamps, self-inking stamps, daters, signage, badges, personalized specialty identity items, seals, and corporate kits. Founded by Sol Shapiro, the company has built a reputation for dependability and stability with both clients and employees maintaining association with the company for decades. Ranked among the top 25 woman-owned privately held companies in the Charlotte region, Carolina Marking Devices has also been recognized for more than 15 years with the NC Department of Labor’s Gold Award for Safety. Currently located in a 23,000 square foot facility on South Tryon, the company can also be found on the Internet at www.caromark.com.

Kinney Stamp & Engraving is a second-generation family-run operation founded by H.F. Kinney Senior in 1964. Kinney Stamp & Engraving Co., Inc. has taken the initiative to be one of the first marking device companies to invest in new systems and technologies to enhance production capabilities. The company will be relocating its equipment and employees to the Carolina Marking Devices plant location.

Carolina Marking Devices
Phone: 704.525.7600
Website URL: www.caromark.com