Knowles Electronics sees failure to comply with covenants, to delay coupon on 13 1/8% notes

New York, April 12 - Knowles Electronics Holdings, Inc. said it expects its first quarter results will show that it failed to comply with several covenants in its bank credit facility as of March 31.

As a result, the Itasca, Ill. transducer and acoustic component manufacturer said it is negotiating a waiver of the covenants and modifications to their terms with its bank lenders.

Knowles said it expects it will not make the interest payment scheduled for April 15 on its 13 1/8% senior subordinated notes due 2009 until the waivers have been received.

Filing of the 10-K annual report for 2001 will also be delayed, Knowles said.

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