Southwestern Industries, Inc announced that it has acquired XYZ Machine Tools Ltd, one of the largest machine tool suppliers to the UK. XYZ Machine Tools, located in Devon, UK, has been a partner in the sale of Southwestern Industries ProtoTRAK systems throughout Europe for the past 13 years. The change of ownership brings with it the additional financial and technical resources that are necessary to sustain XYZ's position as the largest supplier by volume of CNC machine tools to the UK market and to extend its presence in Europe.

"Over the last several years our two companies have grown increasingly interdependent," said Rich Leonhard, President of Southwestern Industries. "Southwestern Industries has assumed responsibility for XYZ's ProtoTRAK machine design and documentation and we have begun developing common products that can be sold by both companies. The first of these is the TRAK TRL 1630SX toolroom lathe."

There are no plans to fully integrate the two companies. Nigel Atherton, Managing Director, will continue to head the UK and European operations, with particular emphasis on increasing XYZ's market share and Keith Wilson, Director, will continue to manage XYZ's day-to-day operations.

"Our longer-term objectives are both realistic and achievable, and our customers will continue to enjoy the same high standards of service and supports," said Nigel Atherton, Managing Director of XYZ. "It is also the case that the change of ownership will not affect existing employees' roles and responsibilities. In other words, it's business as usual,"

According to Rich Leonhard, President of Southwestern Industries, "Southwestern Industries has concentrated on designing, building and supporting technology-driven products that maximise productivity. In our 55 year history this is our first acquisition, so we have been picky. However, XYZ Machine Tools is a very successful company and will play a key role in promoting our products throughout Europe."

About XYZ Machine Tools Limited Founded in 1984 by Nigel Atherton, XYZ Machine Tools Limited is celebrating 21 years in business, operating from five sites in the UK and with an expanding European distribution network. Its high quality products range from conventional metal cutting machine tools to manual/CNC machines to fully-computer controlled mills, turning machines and machining centres.

About Southwestern Industries Inc. Since 1963, Southwestern Industries, Inc. has been an industry leader in innovative products for machinist productivity. Our engineering, manufacturing and corporate headquarters are housed in 130,000 ft. facilities in Southern California. We employ a large field organization of factory-direct sales, service and management personnel throughout North America.

For more information contact:
Gianna Williams, Marketing Services Coordinator
Southwestern Industries, Inc.
2615 Homestead Place
Rancho Dominguez, CA 90220
310-608-4422 Fax: 310-764-2668 Email: info@southwesternindustries.com www.southwesternindustries.com