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Boston Whaler Forms Commercial, Government Product Group

Maritime Activity Reports, Inc.

August 30, 2001

The Brunswick Boat Group has formed Boston Whaler Commercial and Government Products to better focus on these important market segments. Fred Kiekhaefer has been named president of this new operating unit. Kiekhaefer also remains president of the Mercury Racing division.

Boston Whaler Commercial and Government Products also will be working closely with Mercury Marine, Mercury Racing, and Valiant rigid hull inflatables to ensure seamless boat and engine package integration. Mercury, Mercury Racing and Valiant all remain independent units of Brunswick Corporation.

"When commercial operators and government agencies identify their unique operational needs, they will find experienced, knowledgeable experts at 'Whaler Commercial,' with a broad range of boats, propulsion and special capabilities to satisfy those needs," Kiekhaefer said.

Production of Boston Whaler's commercial line will transition to a separate manufacturing facility in Edgewater, Fla., and should be completed by early October. During the transition, the new Boston Whaler Commercial and Government Products organization will remain at Boston Whaler's recreational boat facility in Edgewater.

Boston Whaler President Mike Myers said that, although the new facility will manufacture and market boats under the Boston Whaler brand name, Commercial and Government Products will function as an independent business unit.

"Naturally the new unit will continue to manufacture the boats using Boston Whaler's traditional unsinkable Unibond construction process. Commercial Products also will use the superior components that maintain the integrity and reputation Boston Whaler enjoys," said Myers.

"However, the commercial business will operate independently of the recreational business."

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