Applica Enters into Third Amendment to Merger Agreement with Harbinger Dec 28, 2006

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Applica Incorporated announced that it has entered into a third amendment to its merger agreement with affiliates of Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. (together, “Harbinger Capital Partners”) under which Harbinger Capital Partners has increased its offer to acquire all outstanding shares of Applica that it does not currently own to U.S. $7.50 per share in cash.

The Applica Board of Directors accepted Harbinger Capital Partners’ increased offer of $7.50 per share and Applica entered into the amendment to the merger agreement. The Applica Board of Directors recommends that Applica shareholders vote “FOR” the adoption of the amended merger agreement between Applica and affiliates of Harbinger Capital Partners.

The offer and amendment followed an increase to $7.50 per share of the price of the unsolicited tender offer to purchase all outstanding shares of Applica’s common stock that was commenced by Apex Acquisition Corporation, a newly formed Florida corporation and an indirect, wholly owned subsidiary of NACCO Industries, Inc.

Applica’s Board has once again recommended that shareholders reject the NACCO offer and not tender their shares in the NACCO offer.

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