Keller Enters into a Settlement Agreement with the Pension Benefit Guaranty Corporation in Connection with Termination of Pensio

  
    
  
  
    
      The Keller Manufacturing Company, Inc., an Indiana corporation (“Keller”) 
      (Pink Sheets: KMFI), announced today that it has entered into a 
      settlement agreement with the Pension Benefit Guaranty Corporation (“PBGC”) 
      in connection with the termination of The Keller Manufacturing 
      Company, Inc. Employees’ Pension Plan 
      (the “Plan”). 
      Keller had previously filed notice and was in negotiations with the PBGC 
      seeking what is known as a “distress 
      termination” of the Plan.
    
    
      The Plan was terminated on July 26, 2006. The PBGC became trustee of the 
      Plan on June 29, 2007 and announced that it had assumed responsibility 
      for the Plan’s unfunded liabilities on July 
      13, 2007. On December 21, 2007, Keller entered into a settlement 
      agreement with the PBGC settling all liabilities of Keller and its 
      subsidiaries with respect to the Plan. Under the settlement agreement 
      Keller will pay the PBGC $400,000. The settlement agreement and the 
      termination of the Plan will have no impact on most Plan participants 
      who will continue to receive the benefits they are entitled to receive 
      under the Plan subject to limitations on the maximum amount of benefits 
      under federal pension law.
    
    
      “Keller is extremely pleased with this 
      settlement agreement. It will now allow the company and its subsidiary, 
      Paragon Door Designs, Inc., a Kentucky corporation (“Paragon”), 
      to begin focusing on future growth,” said Ron 
      Humin, Chairman and President of Keller. Keller acquired 85.3% of the 
      equity interest of Paragon on January 9, 2006.
    
    
      The news release contains certain statements that are “forward-looking 
      statements” within the meaning of Section 27A 
      of the Securities Act of 1933 and Section 21E of the Securities Exchange 
      Act of 1934, as amended. Those statements may include statements 
      regarding the intent, belief or current expectations of the Company or 
      its officers with respect to (i) the termination of the Company’s 
      employee pension plan, (ii) the Company’s 
      strategic plans, (iii) the policies of the Company regarding capital 
      expenditures, dividends, financing and other matters, and (iv) industry 
      trends affecting the Company’s financial 
      condition or results of operations. Readers of this news release are 
      cautioned that reliance on any forward-looking statement involves risks 
      and uncertainties. Although the Company believes that the assumptions on 
      which the forward-looking statements contained herein are based are 
      reasonable, any of those assumptions could prove to be inaccurate given 
      the inherent uncertainties as to the occurrence or nonoccurrence of 
      future events. There can be no assurance that the forward looking 
      statements contained in this news release will prove to be accurate. The 
      inclusion of a forward-looking statement herein should not be regarded 
      as a representation by the Company that the Company’s 
      objectives will be achieved.