Flanders Corporation Enters Into Three-Year Agreement With Harry L. Smith, Newly Appointed President and Chief Executive Officer

Flanders Corporation entered into a three-year employment agreement with Harry L. Smith, Jr., chief executive officer and president, commencing December 1, 2008. As announced on October 28, 2008, Flanders appointed Smith as president and CEO effective November 1, 2008.

Robert R. Amerson, chairman of the Flanders’ Board of Directors, stated, “Harry has been with Flanders for over 10 years and has worked in all aspects of the company. He was instrumental in growing the business, particularly in developing the commercial and industrial business, and has been pivotal in the turnaround we began implementing this year. We believe Harry is a key factor in achieving our goals of improved productivity and EBITDA growth.”

Smith commented, “I am dedicated to Flanders and excited to be leading and directing necessary changes during this turning point in our history to once again make this company great. This year, we have made tremendous efforts to reduce overhead, manage costs and strengthen our balance sheet. Looking to 2009, we are well positioned for further productivity enhancements, increased focus on our core competencies and pursuit of new product innovation.”

Smith, 38, has a long history in the air filtration industry, most recently, serving as chief operating officer since August 2007. He has worked at Flanders since 1997, holding roles of increasing responsibility including leading the Flanders’ direct offices; ARW -Wholesale Division; FSS-Filter Sales and Service; FFI-Flanders Filters, Inc.; CSC-Charcoal Services, Inc., and AirSeal Filter Housings, Inc. Smith received his Bachelor of Science degree in Business Administration from East Carolina University in 1992.