Fender to Develop and Distribute Gretsch Guitars Worldwide

Fender Musical Instruments Corporation (FMIC) and Fred Gretsch Enterprises, Ltd. (Gretsch) announced that the two companies have entered into an agreement where FMIC has been granted the exclusive rights to develop, produce, market and distribute Gretsch guitars worldwide.

As part of the deal, which is effective as of January 1, 2003, FMIC will be responsible for all aspects of the Gretsch stringed instrument product lines and brand names, including Gretsch guitars and basses, Synchromatic guitars, Electromatic guitars and Gretsch's line of parts and accessories. Development of future new products, including Gretsch branded amplifiers, is also a part of the deal.

Citing FMIC's success in worldwide sales, marketing and distribution as the reason for which it was considered a viable company to approach, Gretsch looks to expand its brand name awareness and market share with the help of FMIC's established assets. Beginning January 1, 2003, FMIC will take over existing Gretsch inventory and they will begin to market and distribute the product to FMIC's worldwide network of retailers and distributors.

Fred Gretsch has entered into a consulting agreement in which he will work with FMIC throughout the changeover, helping to create a smooth business transition and to ensure the integrity of The Gretsch Guitar Company's 120-year heritage. He will also consult on product development and quality control, and he will continue to be an active part of Gretsch's artist relations.

"These are very thrilling times for both Fender and Gretsch," says Bill Schultz. "We are very much looking forward to working on expanding Gretsch's reach around the world, and we are all excited that this will lead the way to the possibility of more American-made products in the future."

For more information, visit their web site at www.gretsch.com.