Taylor and Fender Join Forces in Europe

SCOTTSDALE, Ariz.--(Business Wire)--Taylor Guitars and Fender Musical Instruments Corporation today
announced a strategic relationship between the two companies which
will now work together to raise Taylor's brand awareness throughout
Europe. Fender Europe's new Taylor Division will be the exclusive
distributor for Taylor guitars in Europe, Africa, and most of the
Middle East, and is expected to commence distribution operations on
July 1, 2008.

"The world has become more and more flat, with cultural, currency
and trade barriers becoming less and less. With the advent of the
European Union, the adoption of a common currency and the free
movement of goods across borders, a huge opportunity has been created
to do more commerce at a higher level," said Kurt Listug, co-founder
and CEO of Taylor Guitars. "Fender has proven the concept of an
American guitar and amp company successfully exporting their business
model to Europe, and achieving much higher sales and brand awareness
as a result."

Listug said he approached Fender with the idea of distributing
Taylor guitars in Europe, after learning how successful Fender had
been with their overseas sales model. "Bill (Mendello) shared his
experiences in creating Fender Europe with me a few years ago, and
invited me to see their European operations first hand. I spent a week
visiting their warehouse, sales offices, and even their Dusseldorf
custom shop showroom. I was blown away by their incredible success in
Europe, and the huge potential of their sales model for Taylor."

"We are extremely pleased to be working closely with Bob Taylor
and Kurt Listug, two admired industry leaders who have built Taylor
into a premier guitar brand," said Bill Mendello, Chairman and CEO of
Fender Musical Instruments Corp. "By providing our expertise in sales,
marketing, warehousing and logistics, we look forward to enhancing
their success throughout the European market."

Taylor evaluated creating its own European distribution arm versus
partnering with Fender. "We considered doing it ourselves, but
distribution is expensive and requires specialized expertise. Having
the opportunity to work with Fender, leveraging their resources and
experience into much higher European sales for Taylor, is the best
decision."

Fender Musical Instruments Corporation
Jason Padgitt, 480-596-7194
jpadgitt@fender.com

Copyright Business Wire 2008