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KELLY- MOORE FOR IMMEDIATE RELEASE Contact for Kelly-Moore Paints: kminfo@kellymoore.com Kelly-Moore Paints Announces Plan for Orderly, Out-of-Court Wind-Down of Company Operations IRVING, TEXAS—January 12, 2024- Kelly-Moore Paints ("Kelly-Moore" or the "Company") announced today that the Company plans to immediately cease operations and commence an orderly, out-of-court wind-down of substantially all its business. During the wind-down process, the Company will continue to endeavor to fulfill previously placed customer orders to the extent possible from existing inventory in Kelly-Moore's Union City, California, distribution facility. All the Company's other facilities will be permanently closed effective immediately, including Kelly-Moore's manufacturing facility in Hurst,Texas, and its retail stores, all of which were leased. Kelly-Moore employees will be fully compensated for regular time worked, and management will continue its efforts to collect receivables to pay all accrued benefits including Paid Time Off. Earlier this week, the Company announced a furlough of approximately 700 employees across the Company's locations, as well as an operational halt at its manufacturing facility. At the time, the Company had a number of interested investors with which it was working, in hopes of allowing for a return to full operations. Since then, the Company has continued actively seeking new capital to enable a turnaround, with assistance from financial advisor Houlihan Lokey. Unfortunately, none of the interested investors has stepped forward with a Letter of Intent, and the Company has not secured the additional funding needed to continue operations. "I'm extremely disappointed and saddened by this outcome, as the entire Kelly-Moore team made incredible efforts to continue innovating and serving the unique needs of professional painting contractors," said CEO Charles Gassenheimer. "The ownership group's commitment from day one was to fix the business if we could. Sadly, no matter how great the Kelly-Moore team, products and reputation for service, we simply couldn't overcome the massive legal and financial burdens that have been weighing on the Company for many years. "I could not be prouder of what our talented team accomplished under extremely challenging circumstances," continued Gassenheimer. "My deepest sympathy goes out to our loyal employees, customers, industry partners and the communities where we do business, who have supported Kelly-Moore throughout its long history. Unfortunately, this was the only viable alternative remaining for us after evaluating all other potentially feasible options." "Our owners took on significant financial risks in the acquisition last year," continued Gassenheimer. "Unfortunately, despite their extraordinary efforts after acquiring this