October 11, 2005
For Immediate Release
Alpine Electronics, Inc.
Notice Concerning Exercise of Call Option on Convertible Bonds.
Alpine Electronics, Inc. ("Alpine" or "the Company") announced that the requirements for a 130% call option on the Second Series of Unsecured Convertible Bonds (with financial covenants that entitle bondholders to an equal claim to collateral) ("the Bonds"), issued on February 14, 2002, provided under Article 8.3 of the Bond Agreement, were met on October 11, 2005. Accordingly, the Company now has the right to prematurely redeem the entire balance of the Bonds at 100% of the \100 par value of each bond.
In the event Alpine elects to exercise this right based on the aforementioned requirements, and in accordance with Article 8.4 of the Bond Agreement, the Company shall notify all bondholders of redemption procedures within 15 days from the time the right accrues, and during a period of more than 30 days and less than 60 days prior to the date on which the Bonds are redeemed. As of the date of this notice, Alpine has yet to determine whether or not it will exercise the right.
In addition, the Company wishes to advise all concerned parties that the final conversion date is November 24, 2005 (Thursday). Holders of the Bonds will not be able to convert to stock after that date.