The Hallwood Group Incorporated
3710 Rawlins, Suite 1500 Dallas,
Texas 75219 214/528-5588 Fax: 214/323.0233
FOR IMMEDIATE RELEASE
Richard Kelley, Chief Financial Officer
Hallwood Group Announces Proposal From HFL To Acquire
All Outstanding Shares of Common Stock
Dallas, Texas November 9, 2012 The Hallwood Group Incorporated (NYSE MRK US: HWG) (the Company) announced today that on November 6, 2012, the Company received a proposal from
Hallwood Financial Limited to acquire all of the outstanding shares of common stock of the Company that it does not beneficially own at a cash purchase price of $10.00 per share. Hallwood Financial Limited, a private limited company organized under
the laws of the British Virgin Islands, is controlled by the Companys Chief Executive Officer and members of his family. Hallwood Financial Limited owns 1,001,575, or 65.7%, of the outstanding shares of the Company.
On November 7, 2012 at the Companys regularly scheduled board of directors meeting, a special committee, consisting of its independent
directors, was formed to consider and negotiate the proposal and to make a recommendation to the full board of directors. The special committee is empowered to retain its own independent legal and financial advisors to assist in its review and
negotiation of the proposed transaction. The Companys shares trade on the NYSE MKT stock exchange under the symbol of HWG and closed on November 5, 2012 (the day prior to the receipt of the offer) at $6.00 per share.
The board of directors cautions the Companys shareholders and others considering trading in its securities that it has only received the proposal
and that no decision has been made with respect to the Companys response to the proposal. There can be no assurance that any offer will be accepted, that any agreement will be executed or that the transaction contemplated in the proposal or
any other transaction will be approved or consummated. The Company does not anticipate making any further public statements about this matter or the activities of the special committee unless and until either it enters into a definitive agreement
for a transaction or the special committee determines that no such transaction will be effected.
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