FOR IMMEDIATE RELEASE

Gov’t says wood is illegal if U.S. workers produce it
Thursday, August 25, 2011

The Justice department bullies Gibson without filing charges

The Federal Department of Justice in Washington, D.C. has suggested that the use of wood from India that is not finished by Indian workers is illegal, not because of U.S. law, but because it is the Justice Department's interpretation of a law in India. (If the same wood from the same tree was finished by Indian workers, the material would be legal.) This action was taken without the support and consent of the government in India.

On August 24, 2011, around 8:45 a.m. CDT, agents for the federal government executed four search warrants on Gibson's facilities in Nashville and Memphis and seized several pallets of wood, electronic files and guitars. Gibson had to cease its manufacturing operations and send workers home for the day, while armed agents executed the search warrants. Gibson has fully cooperated with the execution of the search warrants.

• Raid shut down Gibson factories and cost company money
This is the second time that federal agents have raided Gibson facilities and disrupted production – this time causing lost productivity and sales.

• Wood seized was verified as FSC® Controlled Wood according to the Forest Stewardship Council™ (FSC®) Controlled Wood requirements
The wood the Government seized on August 24 is from a Forest Stewardship Council™ certified supplier and was received as FSC® Controlled Wood, meaning that the wood conforms with the FSC Controlled Wood Standards of the Forest Stewardship Council™, which is an industry-recognized and independent, not-for-profit organization established to promote responsible management of the world's forests. FSC® Controlled Wood standards require, among other things, that the wood not be illegally harvested and not be harvested in violation of traditional and civil rights. See www.fsc.org for more information. Gibson has a long history of supporting sustainable and responsible sources of wood and has worked diligently with entities such as the Rainforest Alliance and Greenpeace to secure FSC® certified supplies. The wood seized on August 24 was evaluated to FSC® Chain of Custody Standards.

• Nearly two years later, no charges have been filed
In 2009, more than a dozen agents with automatic weapons invaded the Gibson factory in Nashville. The Government seized guitars and a substantial amount of ebony fingerboard blanks from Madagascar. To date, 1 year and 9 months later, criminal charges have NOT been filed, yet the Government still holds Gibson's property. Gibson has obtained sworn statements and documents from the Madagascar government and these materials, which have been filed in federal court, show that the wood seized in 2009 was legally exported under Madagascar law and that no law has been violated. Gibson is attempting to have its property returned in a civil proceeding that is pending in federal court.

The Justice Department has asked the judge to stop the court case indefinitely.

• Information sought in raid was already made available
Since 2009, Gibson has fully cooperated with the Government's investigation of wood and has provided substantial documentation regarding Gibson's wood-buying activities over the years. Yet, the Federal Government raided Gibson's facilities on August 24, 2011, without warning or communication of any kind. Had the Government simply communicated with Gibson, Gibson would have cooperated without having to stop its production and send workers home.

• Not about illegal logging, not about conservation, not about the environment
The U.S. Lacey Act does not directly address conservation issues but is about obeying all laws of the countries from which wood products are procured. This law reads that you are guilty if you did not observe a law even though you had no knowledge of that law in a foreign country. The U.S. Lacey Act is only applicable when a foreign law has been violated.

• Gibson is innocent and will fight to protect its rights
Gibson has complied with foreign laws and believes it is innocent of ANY wrong doing. We will fight aggressively to prove our innocence.

For more information, please contact:
Henry E. Juszkiewicz
c/o Gibson Guitar Corp.
309 Plus Park Blvd.
Nashville, TN 37217
(615) 871-4500 Extension 2405
www.gibson.com

About Gibson Brands:

Gibson Brands, the fastest-growing company in the music and sound industries, was founded in 1894 and is headquartered in Nashville, Tennessee. Gibson Brands is a global leader in musical instruments, consumer electronics, and professional audio, and is dedicated to bringing the finest experiences to consumers by offering exceptional products with world-recognized brands.

Gibson Brands has a portfolio of over 100 well-recognized brand names starting with the #1 guitar brand, Gibson. Other instrument brands include Epiphone, Dobro, Valley Arts, Kramer, Steinberger, Tobias, Slingerland, Maestro, Baldwin, Hamilton, Chickering and Wurlitzer. In professional audio, KRK Systems, TASCAM, Cerwin-Vega, Stanton, and Cakewalk also continue Gibson’s tradition of quality in their respective markets. Consumer electronics brands include Onkyo, Integra, TEAC, and Esoteric.

Gibson Brands recently expanded its reach into consumer markets with the acquisition of Philips' Home Entertainment based in Hong Kong—a company that invented the cassette tape, the CD format, the DVD format and the MP3 format. Under the Philips and Fidelio brand names, Gibson Brands continue to represent the ideal combination of innovation, tradition and a dedication to improving design while maintaining the highest level of craftsmanship.

A global company, Gibson Brands has manufacturing, marketing and research and development centers throughout the world.

All Gibson Brands are dedicated to innovation, prestige and improving the quality of life and music for its customers. Its goal is to provide the most exceptional customer audio products and experiences in the world.

Contacts:

Maureen O’Connor/Eileen Thompson-Ray/Joe Schneider
Rogers & Cowan
310-854-8116/310-854-8137/310-854-8140
moconnor@rogersandcowan.com        
ethompson-ray@rogersandcowan.com
jschneider@rogersandcowan.com