FEB. 20 I PEAVEY I RESPONSE
Peavey Responds to Controversial Episode of CBS's "Undercover Boss"

Peavey Electronics was featured on the Feb. 15 episode of CBS' "Undercover Boss," a hidden camera realty show that disguises top executives as regular workers to see how their companies really work.

The episode featuring Peavey took a controversial turn when it was revealed that one of the Peavey employees featured on the show was let go and another demoted a few months after filming when the company shut down the part of the plant they worked in to outsource jobs overseas.

Courtland Gray, COO of Peavey, and the executive who went "undercover" during the show, issued the following statement regarding the episode:

"Peavey is a leading provider of music and sound equipment around the world. No other company in our industry ever invested as much in U.S. manufacturing as Peavey. While our competitors took their products to China far earlier in the process at the first hint of higher profitability, Peavey strove to sustain manufacturing in the U.S. for as long as possible. Over the last several years, we performed numerous lean manufacturing processes to become more efficient and to continue manufacturing in the U.S. Closing part of our Plant 3 manufacturing facility was a business decision that we made to remain competitive in the global marketplace. We sincerely regret the hardship the partial closure of the factory caused some of our long-standing, valued employees and their families.

"After the initial shooting, Michael was given an hourly raise to the level of the job offer he referred to. Michael remains employed at Peavey; he was not laid off. Thresa's husband remains employed with Peavey; he was not laid off. We fulfilled the rewards to the employees appearing on the show. Due to the extensive process involved with renewing a work visa, Aj's visa renewal is under review with Immigration. Hopefully the government will approve it, and he can attend the Joe Satriani music camp as promised. We feel the show and network did not portray these issues accurately.

"Peavey continues to manufacture Composite Acoustics guitars, various speaker enclosures and custom products in Meridian, Mississippi. I would also add that our most advanced technology products (MediaMatrix) will remain in the United States.

"We continue to provide jobs to more than 300 hardworking people in this community. Thanks to our amazing employees and customers we have been in business 50 years, and we will continue selling innovative and reliable products well into the future. Thank you for your understanding and support."