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Raven Industries Announces Plan to Exit its Plastic Tank Business

28 June 2000

Raven Industries, Inc. announced that it intends to sell its plastic tank division during the 3rd quarter ending October 31, 2000. In connection with that decision, it has signed a letter of intent to sell certain operating assets of its fiberglass and polyethylene plastic tank operations to Norwesco, Inc., St. Bonifacius, Minn. The sale would include two plants in Sioux Falls and one each in Washington Court House, Ohio, and Albertville, Ala. The Raven plant in Tacoma, Wash. is not included in this initial transaction. The closing of this transaction is subject to completion of due diligence, and negotiation and execution of a definitive agreement. Terms of the letter of intent were not disclosed, but if the transactions are completed, the company will receive a total of approximately $12 million in cash for the division and record a small after-tax gain. Sales for the division were slightly over $18 million in the fiscal year ending January 31, 2000.