Smith & Wesson Holding Corporation Moves to Establish Acquisition Credit Line and Files Shelf Registration Statements

SPRINGFIELD, Mass., Aug. 23 /PRNewswire-FirstCall/ -- Smith & Wesson Holding Corporation , parent company of Smith & Wesson Corp., the legendary 154-year old company in the global business of safety, security, protection and sport, announced that it has been approved to establish additional borrowing capability under an acquisition-related line of credit with TD Banknorth, NA, and that it has filed a shelf registration statement on Form S-3 and a shelf registration statement on Form S-4 with the Securities and Exchange Commission.

Michael F. Golden, Smith & Wesson President and CEO, said, "We have previously indicated our intention to expand and diversify our business through strategic acquisitions and alliances. Our expanded credit agreement and these registration statements are intended to assure that we have sufficient resources to take advantage of any opportunities that present themselves. We do not currently have any definitive plans for acquisitions or alliances and have not entered into any letter of intent or other documentation with respect to any such transaction. We also have no current plans to raise additional funds through the public securities markets or through our credit agreement."

The Company has received approval for a $30,000,000, two-year Revolving Acquisition Line of Credit with TD Banknorth, NA. When finalized, the new credit facility will be available to finance up to 90% of the price of acquisitions, subject to certain terms and conditions.

The Form S-3 registration statement is intended to enable the Company to issue and sell, from time to time, in one or more public offerings, up to 15,000,000 shares of its common stock at prices and on terms to be determined at the time of the offering. The Company may use this shelf registration statement in the future to raise funds for acquisitions, capital expenditures, or other corporate purposes, as further described in the prospectus and applicable prospectus supplement related to a specific offering.

The Form S-4 registration statement is intended to enable the Company to issue and sell, from time to time, in one or more transactions, securities that may consist of common stock, preferred stock, or any combination thereof, up to a maximum aggregate amount of $150 million in connection with the acquisition of businesses by the Company.

The registration statements relating to these securities have been filed with the Securities and Exchange Commission but have not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statements become effective. A copy of the prospectus and prospectus supplement, when available, may be obtained from the SEC's web site at http://www.sec.gov/ or from the Company by contacting our Corporate Secretary at 2100 Roosevelt Avenue, Springfield, MA 01104. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state.

About Smith & Wesson

Smith & Wesson Holding Corporation, through its subsidiary Smith & Wesson Corp., is one of the world's largest manufacturers of quality handguns, law enforcement products and firearm safety/security products. The Company also licenses shooter protection, knives, apparel, footwear and other accessory lines. The Company is based in Springfield, Mass., with manufacturing facilities in Springfield and Houlton, Maine. The Smith & Wesson Academy is America's longest-running firearms training facility for America's public servants. For more information, call [phone] or log on to http://www.smith-wesson.com/.

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and the Company intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include statements regarding the Company's anticipated expansion and diversification through strategic acquisitions and alliances and the Company's ability to maintain sufficient resources in order to take advantage of future opportunities. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the Company's ability to identify suitable candidates for acquisitions or alliances; the ability to complete such transactions; the ability to assimilate future purchased operations or products; the costs associated with any future acquisition; the diversion of management's attention from our core businesses; the adverse effects on existing business relationships with suppliers and customers; risks associated with entering markets in which the Company has little or no prior experience; the potential loss of key employees within any purchased organization; the ultimate success of such transactions; and other risks detailed from time to time in the Company's reports filed with the SEC, including its Form 10-K Report for the fiscal year ended April 30, 2006.

Contacts: John Kelly, Chief Financial Officer Smith & Wesson Holding Corp. [phone] Sharp, VP Investor Relations Smith & Wesson Holding Corp. [phone] x. [e-mail]