American LaFrance Transition Update.....

[x635 4,066]

From:

www.americanlafrance.com

November 30, 2005

To the Fire and EMS Community:

I am pleased to announce that, as part of the go-forward understanding with DaimlerChrysler, the headquarters and production facility in Ladson, S.C. - will remain available to American LaFrance through mid-2007.

With this agreement, we will not be moving the pumper and tanker body production currently at that facility to other American LaFrance locations as previously announced.  That manufacturing – and the several hundred jobs required to manage and operate it – will remain in Ladson and Jedburg, S.C.  We have informed employees and cancelled layoff plans previously announced in early September. 

The decisions to stay in Ladson and retain our current workforce marks an important milestone on an exciting roadmap that we have developed for the future of this company.  It builds on the recent progress that has been made and sets the course for establishing a world class manufacturing  operation. The new owners of American LaFrance will now have the time and flexibility to determine where a new headquarters and manufacturing facility will be located. Sites in the Ladson / Charleston area are currently being presented to them as possible alternatives. 

As you may have heard, as part of this agreement with DaimlerChrysler, a portion of the plant will be converted to produce Dodge Sprinter Vans.  This will occur on unused floor space in the facility and will, in no way, impact the production or delivery of American LaFrance apparatus and vehicles.

During December, we will be making several additional announcements that will strengthen our company and help us to better serve our dealers, customers and communities across North America. 

We are prepared for the future – and welcome both the challenges and opportunities of the upcoming year.

Sincerely,

John Stevenson, President