Press Release

US Marine, an operating unit of Brunswick Corporation (NYSE:BC), announced today the introduction of the new Bayliner 175, expressly designed and developed for today's boating family. "For more than 45 years, Bayliner has represented affordable family fun on the water. In fact, Bayliner has introduced more American families to the joys of boating and family fun on the water than any other manufacturer," said William J. Barrington, president of US Marine. "Now, with our new Bayliner 175, at a package price of $9,995, we are again re-defining affordable family boating."

How is Bayliner doing it?

According to Barrington, Bayliner is able to offer the new 175 for $9,995 because it has developed and implemented the PRO System of boat development and manufacturing. The PRO (Process Resource Optimization) System(TM), exclusive to the Brunswick Boat Group, consists of three key elements: the first is global manufacturing; the second is global sourcing of high-quality parts and components; and the third is institutionalizing a world-class quality assurance system.

"US Marine currently builds boats in Brazil and Bulgaria, as well as in numerous plants in the United States. In conjunction with the Brunswick Boat Group, we expanded our global manufacturing capability by putting together a completely new manufacturing facility in Reynosa, Mexico," Barrington explained. "Our manufacturing and quality engineers have designed this new plant for optimum flow, maximizing manufacturing efficiencies. In addition, we built into the manufacturing process a quality system that includes a test tank at the end of the production line." Each and every Bayliner 175 will be produced and thoroughly tested in this new facility, and will be available at dealerships beginning in July.

Dustan E. McCoy, president of the Brunswick Boat Group, says that a great deal of planning went into choosing Reynosa, Mexico as the site for this new facility. "Brunswick is a global company -- manufacturing or assembling boats in more than a dozen countries around the world," said McCoy. "We know that to deliver the best cost and highest quality, a manufacturing facility must be located in an area that has a great workforce and a great supplier base. Through extensive research, we found that Reynosa had exactly what we sought."

Global Sourcing a Key to Right Price and Quality

"Global sourcing of high-quality parts and components is also a key element to delivering on best cost and highest quality," added McCoy. "More than 12 months ago we began assembling a global sourcing team that is second to none in the boat-building industry. Each team member has extensive experience in sourcing quality parts from around the world. They have all been trained in the Six Sigma quality assurance process (a cornerstone to many world-class quality organizations), and have been instrumental in the implementation of PPAP (production part approval process) into our global sourcing efforts." PPAP is a process that helps ensure that the supplier of the part or component fully understands the customers' engineering criteria, design methodology, and specification requirements, and that such requirements are met on an ongoing basis. McCoy said, "Our team has put a system in place that will provide only the very best quality parts and components for the best cost possible."

Bayliner believes that the new 175 will help grow the boating industry. Dave Taylor, senior vice president, sales and marketing for US Marine, said the new 175 has exactly what today's boating families are looking for -- roominess, versatility, quality, and performance.

"Through extensive consumer research, we know that today's boating family is active, energetic, passionate about the water and seeking new ways to enjoy family fun. We also know that they are practical and looking for the most for their hard-earned money. The Bayliner 175 was designed with these families in mind," Taylor explained.

By breaking the $10,000 price barrier, Bayliner believes many people who were looking for a used boat, can now enjoy a new boat.

"According to research, the new Bayliner 175 is priced between the calculated average prices of used 17- and 18-foot runabouts," said Taylor. "We believe that by offering a brand new boat, with full warranty coverage (including a limited lifetime hull warranty), through a dedicated dealer support network -- all for the same price as a used boat -- it will compel many potential used-boat buyers to migrate to the new Bayliner 175."

The new Bayliner 175 is a full-featured, fiberglass sport boat that comes complete with a 3.0 liter, 135-horsepower Mercury(R) MerCruiser(R) engine and a trailer (consumers will have a choice between having their trailer painted or galvanized -- at no additional cost). The Bayliner 175 features a full windshield, an easy-to-view dash panel, excellent storage for skis, wakeboards and other equipment, room for seven passengers, and plenty of power to pull skiers and wakeboarders at speeds in excess of 40 mph. The Bayliner 175 has been designed for accessibility, minimum preparation and low maintenance.

Dealers Sing Praises of Bayliner 175

A number of Bayliner dealers recently previewed the new 175 and, according to Taylor, are very excited. For example, John White of Sterling Marine in Denver, Colo., said, "The new 175 is a great running boat. I was very impressed with the layout, roominess and the quality of construction of the product. Bayliner has really hit a home run on this new boat; you'll be seeing them on lots of lakes in Colorado this summer. We ran the boat with five big guys along for the ride, and the boat performed exceptionally."

Bob Steinway of Olympic Boat Centers in Seattle, Wash., said, "By using all of Bayliner's resources, they are able to provide a quality boat, motor and trailer package that is easy for a family to own at an amazing price."

Warren Moulis from Fox Lake Harbor Marine near Chicago, Ill., added, "At $9,995 the boat is a winner. The performance is matched by the quality. The total package is a winner. The new 175 from Bayliner will attract used-boat buyers and take people off the fence who thought they could not afford a boat and allow them to experience the fun that Bayliner and boating provide."

Bayliner is making boating affordable -- again. "For the past decade, there have been many American families that would have loved to enjoy the boating lifestyle, but who just couldn't because of the cost," said Barrington. "Now, through the implementation of the PRO System, that has all changed."

$9,995. Changed indeed. Bayliner is back.

Bayliner Boats are manufactured by US Marine, an operating unit of Brunswick Corporation. Headquartered in Lake Forest, Ill., Brunswick Corporation is a manufacturer and marketer of leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; Sea Ray, Bayliner, Maxum, Hatteras and Sealine pleasure boats; Baja high-performance boats; Boston Whaler and Trophy offshore fishing boats; Princecraft fishing, deck and pontoon boats; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; and Brunswick billiards tables.