PAN-OSTON EXPANDING OPERATIONS TO BOWLING GREEN

Frankfort, Ky. - Governor Ernie Fletcher and Economic Development Cabinet Secretary Gene Strong, along with officials from the City of Bowling Green today welcomed the announcement by Pan-Oston, headquartered in Glasgow, Kentucky to relocate and expand their operations to Bowling Green, Kentucky. The expansion will create an additional 125 new jobs for Kentuckians bringing the company’s total employment to 340 at the new site.

"I’m pleased Pan-Oston has decided to expand its manufacturing facility in Kentucky," stated Governor Fletcher. "The company’s decision to remain in south central Kentucky is a testament to the region’s highly qualified workforce and business climate. This announcement underscores my administration's priority of job creation and restoring hope to families in every region of our great state."

The company will be investing approximately $6.5 million to acquire the former Treasure Quest/Service Merchandise property in north Warren County as well as additional automated fabrication and painting equipment. Pan-Oston is the supplier of choice in design, delivery and service of custom metal and wood store fixtures, serving major national and regional retailers such as Wal-Mart, Target, Sears, Houchens, Stop and Shop, IKEA, Michaels and others. Pan-Oston was acquired by Houchens Industries in 2002.

"We have recently increased our business applications with current customers, expanded our customer base and added wood technology to our historical metal fabrication technology which makes this expansion necessary," stated John Kelly and Terry Scariot, CEOs of the company. "Were it not for the assistance of Governor Fletcher and Secretary Strong, this project would not have been possible."

"The successful retention and expansion of Pan-Oston is advantageous for the entire south central Kentucky region. The additional jobs and investment will be a boost for every sector of the regional economy," stated Bowling Green Mayor, Sandy Jones.

"We are extremely excited about Pan-Oston’s expansion and are pleased with their continued confidence in south central Kentucky," added Mike Buchanon, Warren County Judge Executive. "Houchens is an outstanding corporate citizen supporting numerous charitable and civic organizations as well as providing excellent employment opportunities for the region."

In addition to the new facility in Bowling Green, Pan-Oston has a facility in Peterborough, Ontario. This facility is fully integrated and serves the Canadian customer base as well as customers located in the northeastern section of the United States.

Parent company, Houchens, with over $2 billion in annual sales and 10,000 employees, is now recognized as the United States largest 100% employee owned company according to the ESOP association of reporting companies. Houchens was recently presented the 2004 "Industry of the Year" award at the Bowling Green Area Chamber of Commerce annual 2004 Industry Appreciation Banquet.

A community profile for Warren County may be found at the following link: http://www.thinkkentucky.com/edis/cmnty/cw067/Location.htm

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2003 totaled more than $1.56 billion with the creation of just over 13,800 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at http://www.thinkkentucky.com/.