Maxxim Medical, Inc. to Close Richmond, Va. Facility

CLEARWATER, Fla. -- After stating in early 2002 that it would consolidate several production sites to achieve production efficiencies and rationalize its manufacturing capabilities, Maxxim Medical, Inc. has now made the last announcement in this long-term effort with the phasing out of its Richmond, Va. facility and the transitioning of production of custom procedure trays from that location to its Clearwater headquarters plant on June 13, 2003.

"During the past 18 months, Maxxim Medical has made significant strides in productivity improvement and process enhancements; advances that will now allow us to consolidate several of our production sites," says Thomas R. Cochill, president and CEO. "Process improvements and automated assembly upgrades to the Clearwater facility have made this move possible as well as beneficial. We obviously regret the impact this will have on our valued employees and our longstanding relationships within the Richmond business community."

The company does not anticipate this will affect the level of service and delivery provided to customers, noting that capacity is available in the Clearwater plant not only to absorb the Richmond production volume, but also to support anticipated future growth.

Cochill adds that this process of asset rationalization is not related to the company's recent filing for Chapter 11 reorganization. "This plan long predates our filing and reflects normal, sound business planning as part of our ongoing business management and improvement processes," he says.

Maxxim Medical is a major diversified manufacturer, assembler and marketer of specialty medical and surgical products including custom and standard procedure trays, single use drapes and gowns, medical and surgical gloves, vascular access and critical care products. Selling primarily to acute care hospitals, surgery centers and alternate care facilities, Maxxim has five plants in the United States and one in the Dominican Republic.

Source: Maxxim Medical, Inc.