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Salton, Inc. Enters into Definitive Merger Agreement with Applica Incorporated.

Article Excerpt
LAKE FOREST, Ill. -- Salton, Inc. (NYSE:SFP) today announced that Salton, its wholly-owned subsidiary SFP Merger Sub, Inc., and APN Holding Company, Inc. have entered into a definitive merger agreement whereby SFP Merger Sub will merge with and into APN Holding Company, the entity that acquired all of the outstanding common shares of Applica Incorporated on January 23, 2007. The merger would result in Applica and its subsidiaries becoming subsidiaries of Salton. As a result of the merger, the existing stockholders of APN Holding Company - Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. - would receive in the aggregate approximately 83 percent of the outstanding common stock of Salton immediately following the merger.

The combination of Salton and Applica is expected to create one of the largest U.S. public companies focused on the household small appliance industry, with the scale and customer relationships to provide category leadership and efficiencies. The combined company will have a broad portfolio of well recognized brand names such as Salton[R], George Foreman[R], Black & Decker[R], Westinghouse[TM], Toastmaster[R], Melitta[R], Russell Hobbs[R], Windmere[R], LitterMaid[R], Farberware[R] and Belson[R]. Salton and its subsidiaries after the merger will continue to design, service, market and distribute a wide range of products under these brand names, including small kitchen and home appliances, electronics for home, time products, lighting products, and personal care and wellness products.

Salton estimates that the combined company will have consolidated annual sales of in excess of $1 billion with...

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