Trimble Secures $175 Million in New Credit

7/3/2003 - Trimble (Nasdaq: TRMB) announced that it signed an agreement for a new $175 million secured credit facility with a syndicate of nine banks, arranged by Scotia Capital. The new facility consists of a three-year $125 million revolver and a four-year $50 million term loan. The syndication was substantially oversubscribed, and as a result of this strong market demand, the Company was able to increase the facility from $150 million to $175M and close the syndication early.

Trimble will use the new credit facility to retire all outstanding debt on its existing credit facility and the outstanding principal and accrued interest related to its 10.4 percent subordinated note due in July 2004. The unused portion of the revolver can be used for general corporate purposes.

"We accomplished several objectives with this new credit facility," said Mary Ellen Genovese, chief financial officer of Trimble. "The early payment of our subordinated note will generate significant interest savings over the next 12 months, as well as reduce our quarterly debt service requirement. Additionally, the new facility will provide access to capital on attractive terms which will allow us to efficiently fund our growth objectives."

Financial Implications
The Company will record a non-cash charge under interest expense of approximately $3.5 million in the current fiscal quarter ended July 4, 2003 related to un-amortized debt issuance and warrant valuation costs associated with its existing debt.

Based on the current interest rate for the credit facility, which equates to approximately 3 to 3.25 percent, Trimble anticipates interest expense savings of approximately $3.0 million for the remainder of 2003. As of June 25, 2003, the Company has an outstanding debt balance of approximately $109.0 million.

About Trimble
Trimble is a leading innovator of Global Positioning System (GPS) technology. In addition to providing advanced GPS components, Trimble augments GPS with other positioning technologies as well as wireless communications and software to create complete customer solutions. Trimble's worldwide presence and unique capabilities position the Company for growth in emerging applications including surveying, automobile navigation, machine guidance, asset tracking, wireless platforms, and telecommunications infrastructure. Founded in 1978 and headquartered in Sunnyvale, Calif., Trimble has more than 2,000 employees in more than 20 countries worldwide.

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