BERETTA DEBUTS CUTTING-EDGE FACILITY IN GALLATIN, TENNESSEE

Gallatin (TN), April 15, 2016 – Beretta Holding has officially inaugurated its new manufacturing facility in the United States, which represents the largest market for the company in terms of volume (over 50% of total sales) and strategic significance.

This newly established site will house the comprehensive R&D and production department of Beretta USA. While it maintains its historical headquarters in Maryland, it will now function from a state-of-the-art manufacturing plant designed to significantly enhance production capabilities. This modern facility adheres to the highest standards of “lean manufacturing” and integrates advanced industrial and information technologies, thereby greatly improving manufacturing productivity.

The search for the ideal site for the new facility was an extensive and challenging process, with both Beretta USA management and the Gussalli Beretta family thoroughly evaluating numerous potential options throughout the United States.

Ultimately, the choice was made in favor of the State of Tennessee and the city of Gallatin, bolstered by the strong and valuable support from various governmental and political entities – especially the crucial assistance of Governor Bill Haslam – who facilitated the significant new investment made by the group, amounting to several tens of millions of Euros. This investment is expected to positively impact local community development.

The facility was completed in 2015, with production across several product lines of the prestigious Beretta brand commencing just a few weeks ago.

We expect that at full operational capacity, anticipated within the next two to three years, the site will employ over 300 team members engaged in the manufacture of firearms for sporting, hunting, and personal defense, thereby complementing the array of products produced in Italy.

The current facility spans an area of 156,000 square feet (approximately 15,000 square meters), but the acquired land encompasses 100 acres (about 400,000 square meters), allowing for future expansions.

This investment in the new Tennessee facility is integral to the global strategic development plan of the group, which allocates approximately 40 million euros annually (5% of sales) to its manufacturing capabilities and around 20 million euros (3% of sales) to Research and Development.

Since the 1970s, the Beretta group has solidified a robust presence in the US, achieving over 50% of its total sales in the region, while planning continued expansion for all its subsidiaries within the country: Beretta USA, Benelli USA, Stoeger Industries, Burris, Steiner eOptics. Additionally, two companies, STS and Diffraction, were acquired in early 2016 to augment the Group’s portfolio in the electro-optics sector.

This new facility will augment the slate of Beretta Holding’s other locations across the US, which are situated in Maryland, Virginia, Colorado, California, Ohio, and Vermont, alongside the cities of New York, Dallas, and Memphis, where the flagship “Beretta Galleries” outlets are located.

Pietro Gussalli Beretta, President and CEO of Beretta Holding, stated: “With the inauguration of the new facility in Tennessee, our group marks another essential milestone for growth and competitive enhancement in the world’s most advanced and sophisticated market. We will continue our development in this nation, to which we are deeply connected, appreciating the government’s proactive approach in promoting the localization of advanced technology firms through economic incentives and expeditious administrative approvals. Our growth strategy foresees future investments in the US across our traditional sectors as well as in the highly specialized electro-optics domain.”