BDR Blonder Tongue Laboratories Inc

Blonder Tongue Laboratories, Inc. (AMEX: "BDR") today announced that it plans to divest its 90%-owned subsidiary, BDR Broadband, LLC, to allow Blonder Tongue to pursue alternative strategic opportunities. Blonder Tongue has engaged the services of an investment banking firm experienced in the sale of such businesses and anticipates significant interest. BDR Broadband was formed by Blonder Tongue in 2002 for the purpose of acquiring video and data private cable television systems from Verizon Corporation. Today, the System, comprised of approximately 8,100 passings, and approximately 3,300 active subscribers, is providing video and high-speed data services to its customers. Blonder Tongue used BDR Broadband as a model and showcase for the deployment of its MDU solution for providing video and high-speed data services to subscribers, with reduced infrastructure costs that would allow the business to become profitable more quickly than many of the systems being operated today. Commenting on the proposed divestiture, James A. Luksch, Chairman and Chief Executive Officer said, "From inception, our primary purpose was to enable us to implement and showcase our internally developed strategic solutions for the provision of video and high-speed data services in the MDU environment. We believe those goals have been accomplished. We have also developed a better appreciation of the particular needs and challenges that face system operators and have reinforced our existing knowledge of what the customer needs from an equipment standpoint." Businesses such as BDR Broadband are defined by cash flow, not by net income. Since such businesses are capital intensive, their net income is adversely affected by the substantial depreciation expense associated with high levels of capital assets. Robert J. Palle, Jr., President of Blonder Tongue added, "BDR Broadband is a successful, growing business, which, by necessity, will continue to require capital investment and will, for at least the near term, continue to generate cash, but operate at a net loss, due to its depreciation expense. By selling this business now, we will eliminate the adverse effect of BDR on Blonder Tongue's results of operations and should generate substantial liquidity in the form of cash that can be used as we focus our efforts on our core business and the transition of our manufacturing operations to China." Founded in 1950, Blonder Tongue Laboratories, Inc. has evolved from a manufacturer of electronic equipment for the private cable industry to a principal provider of integrated network solutions and technical services to broadband service providers. The Company designs, manufactures, and supplies a comprehensive line of equipment to deliver video (analog & digital), high speed data and voice services over integrated coaxial and fiber optic broadband networks today and over packet based, Internet protocol networks of the future. For more information regarding Blonder Tongue or its products, please visit the Company's Web site at www.blondertongue.com or contact the Company directly at (732) 679-4000. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The information set forth above includes "forward-looking" statements and accordingly, the cautionary statements contained in Blonder Tongue's Annual Report and Form 10-K for the year ended December 31, 2005 (See Item 1: Business, Item 1A: Risk Factors and Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. The words "believe", "expect", "anticipate", "should", "project", and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. Blonder Tongue undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. There can be no assurance that Blonder Tongue will be successful in its efforts to sell BDR Broadband. Blonder Tongue's actual results may differ from the anticipated results or other expectations expressed in Blonder Tongue's "forward-looking" statements.