Tuesday, July 24, 2007

Orban Purchased from Harman

July 24, 2007: 09:00 AM EST

TEMPE, Ariz., July 24 /PRNewswire-FirstCall/ -- Circuit Research Labs, Inc. announced today that it has entered into and closed a Purchase Agreement with Harman Pro North America, a wholly owned subsidiary of Harman International Industries, Incorporated .

Pursuant to the purchase agreement, on Friday July 13th 2007, CRLI purchased for $1.5 million dollars cash all its promissory notes and shares of its common shares owned by Harman Pro North America. The notes had been issued by CRLI and its President, C. Jayson Brentlinger, to Harman in connection with transactions between the parties several years ago. The aggregate remaining principal balance of the notes repurchased was $3,265,030. The 1,638,457 shares repurchased represented approximately 18.9% of the total number of CRLI shares then outstanding.

Funding for the $1.5 million purchase price was provided by Jayson Russell Brentlinger, father of the company's President, CEO and Chairman C. Jayson Brentlinger.
Under the terms of the purchase agreement, Harman transferred promissory notes made by CRLI totaling $2.3 million plus unpaid interest, the shares of common stock owned by Harman, and promissory notes totaling $1.0 million dollars made by C. Jayson Brentlinger in connection with an earlier purchase by Mr. Brentlinger of 2,104,000 shares of CRLI stock then owned by Harman in April 2005.

Commenting on today's announcement, C. Jayson Brentlinger, President, CEO and Chairman of Circuit Research Labs, Inc. stated, "We have enjoyed a great working relationship with Harman over the past seven years, and now with this final settlement we have successfully concluded our purchase of Orban, Inc. from Harman." Brentlinger continued, "I can't say enough about the professionalism of the Harman team, they have always been very honest and fair in all our many different transactions, an attitude that starts with the company's CEO Sidney Harman and then to every member of the Harman team."