EXHIBIT 99
THE YORK GROUP, INC. ANNOUNCES ELECTION OF THOMAS J. CRAWFORD AS CHAIRMAN OF THE
BOARD AND ADOPTION OF SHAREHOLDER RIGHTS PLAN
HOUSTON -- September 27, 2000 -- The York Group, Inc. (NasdaqNM:YRKG) today
announced that Thomas J. Crawford, President and Chief Executive Officer, has
been elected as Chairman of the Board of Directors of the Company, succeeding
Robert T. Rakich, who will be retiring from the Board.
"I have been contemplating retirement for some time," stated Mr. Rakich. "With
the addition of Tom Crawford to our management team, and the capable oversight
of our Board, I have concluded that the time is right for me to step down. I
strongly believe that this management team will fulfill the expectations of the
shareholders toward increased value and further economic growth of the Company."
The Company announced further that its Board of Directors has approved the
adoption of a shareholder rights plan. The plan is designed to protect
shareholders against efforts to acquire the Company for less than its full
value.
Commenting on its adoption, President and Chief Executive Officer Tom Crawford
said, "The rights are designed to protect and maximize the value of
shareholders' interest in York. We believe that the rights plan, while not
intended to prevent a fair acquisition of the Company, will provide protection
to our shareholders from the abusive and coercive tactics that are often
prevalent in attempted takeovers. This is an action that the Board has
considered thoroughly, and the plan takes a basic form similar to that used by
many other public companies."
"The plan will allow us to complete the refinancing of the Company's
indebtedness without distraction and to focus on other actions that will further
strengthen the Company and allow us to better serve our customers," Mr. Crawford
added. "We believe that adopting the shareholder rights plan is a prudent action
to better serve the long-term interests of all of our stakeholders."
Under the plan, each shareholder of record at the close of business on September
28, 2000 will receive one Preferred Share Purchase Right ("Right") for each
share of common stock held. Initially, the Rights will accompany the common
stock of the Company, and will not trade separately. The Rights expire on
September 27, 2010.
Each Right initially entitles the shareholder to purchase one one-thousandth of
a Series A Junior Participating Preferred Share for $25.00. Each Preferred Share
has terms designed to make it economically equivalent to one thousand common
shares. The Rights will become exercisable only in the event a person or group
acquires 15% or more of the Company's common stock or commences a tender or
exchange offer which, if consummated, would result in that person or group
owning 15% or more of the Company's common stock.
If a person or group acquires a 15% or greater position in the Company, each
Right (except those held by the acquiring party) will then entitle its holder to
purchase, at the exercise price, common stock of the Company having a value of
twice the exercise price, which will entitle the holder to buy the common stock
at 50% of the market price.
Also, if, following an acquisition of 15% or more of the Company's common stock,
the Company is acquired by that person or group in a merger or other business
combination transaction, each Right would then entitle its holder to purchase
common stock of the acquiring company having a value of twice the exercise
price, which will entitle Company shareholders to buy stock in the acquiring
company at 50% of its market price.
The Company may redeem the Rights at $0.01 per Right, payable in cash or
securities of the Company at the discretion of the Board of Directors at any
time prior to the acquisition of 15% or more of its common stock by a person or
group.
Details of the shareholder rights plan are outlined in a letter that will be
mailed to all shareholders.
The York Group, Inc. offers death care professionals the broadest range of wood,
metal, cloth-covered, orthodox and cremation caskets, metal burial vaults, and
bronze memorial and commemorative products of all industry suppliers. The York
Group also provides the leading funeral home merchandising systems,
architectural and interior design services for funeral homes.
This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on current plans and expectations of The York Group, Inc. and involve risks and
uncertainties that could cause actual future activities and results of
operations to be materially different from those set forth in the
forward-looking statements. Important factors that could cause actual results to
differ are outlined in the Company's Form 10-K for 1999 filed with the
Securities and Exchange Commission.
