Golden Artist Colors, Inc. Implements New Employee Stock Ownership Program

- New Berlin, NY, June 12, 2002 -

In the tiny village of Columbus, New York, population of about 600, Golden Artist Colors, Inc., a company in the unique business of making professional acrylic artist paints, is once again showing its distinctive style of leadership by implementing a new Employee Stock Ownership Program (ESOP). Family founders, Mark and Barbara Golden, have continued to guide this internationally recognized Company according to principles of positive corporate citizenship, and have committed to a course of action that will allow Golden's 110 employees to gain majority ownership.

"The new step," said Mark Golden, "reinforces what employees have learned to believe all along-to act and feel like owners. From its inception, Golden Artist Colors has prepared its employees to take greater responsibility and share in the Company's success."

At the end of Golden Artist Colors first profitable year in 1987, the Company instituted a profit sharing pension plan, unique at the time because it allowed each employee to direct his or her own investments. In 1996, The White House recognized 150 businesses including Golden Artist Colors, for their shining example of outstanding Corporate Citizenship.

"We have tried to create an environment where people can thrive," commented Golden. "As a result, the Company has flourished. We are so grateful for all the support and dedication shown by employees over the years, and the ESOP allows us to close the final loop for our staff. Not only will our employees act and feel like owners, but they will become true owners as well."

Golden Artist Colors President, Barbara Schindler, described some of the Company's positive corporate practices: "Golden Artist Colors has set itself apart from other companies by providing a wide range of growth and educational opportunities for staff. The Company has an active year round program of courses and tuition reimbursement programs and has implemented many family friendly practices including a broad flex time program, which is unique in a manufacturing setting. The people here are accountable to their work and their team. They take that responsibility very seriously. It is no wonder we are considered the best in the world at what we do!"

At the staff meeting announcing the Employee Stock Ownership Plan, staff members were clearly informed that an ESOP does not take the place of good retirement planning. Golden Artist Colors will continue to provide a matching 401K retirement program for staff which will not permit the purchase of Company stock. These issues have become very important to ESOP companies in a post-Enron environment. Congress continues to be highly supportive of the private ESOP initiative even though public corporate stock ownership programs are carefully scrutinized.

"It is important," Schindler said, "for staff to recognize that a good retirement plan includes many items, some of which we already provide in our benefits program including disability insurance, life and health insurance, and diversified portfolio management. It is also important to realize that the ESOP has the potential to be, if we continue to succeed, the largest portion of all of our retirement benefits."

Employees have begun the process of education in the stock ownership program through an ESOP Committee and additional staff meetings. The ESOP Committee of 9 rotating representatives has been selected through the vote of fellow employees. Committee members will become thoroughly educated with the ESOP and how it works, assist with communication about ESOP matters to employees, provide feedback to employee questions and direct inquiries if and when management needs to provide additional information.

"Employee ownership provides the opportunity to perpetually renew and reenergize the motivations of the entire Company," said Schindler. "Guided by principles of mutual respect and constructs of value-centered leadership, given the care of its employees, Golden Artist Colors, Inc. looks forward to an even greater measure of success."

About Golden Artist Colors, Inc.
Founded in 1980 by the Golden family, Golden Artist Colors, Inc. is the largest domestic producer of acrylic artist paints. The Company employs over 110 people in its 60,000 square foot factory and is currently expanding its facility in Columbus, New York. Golden branded products are sold to retailers and distributors in over fifty (50) countries. For more information, visit the company web site at Goldenpaints.com