July 31 , 2002
Garmin® Shareholders Announce Execution
of Rule 10b5-1 Selling Programs
CAYMAN ISLANDS/July 31, 2002 / PRNewswire Garmin Ltd.
(Nasdaq: GRMN) today announced that the Gary L. Burrell 2000
Grantor Retained Annuity Trust, the Judith M. Burrell 2000
Grantor Retained Annuity Trust, and Ruey-Jeng Kao, a member
of the companys board of directors, have established
structured, prearranged trading plans to sell a small portion
of their shares in the company over a designated period in
accordance with Rule 10b5-1 of the Securities and Exchange
Jonathan C. Burrell, as trustee, has executed a Rule 10b5-1
selling program for the Gary L. Burrell 2000 Grantor Retained
Annuity Trust ("Gary Burrell GRAT") and the Judith
M. Burrell 2000 Grantor Retained Annuity Trust ("Judith
Burrell GRAT"). Under the plan, Jonathan Burrell has
proposed to sell up to 1,000,000 shares of Garmin Ltd. over
a 7-month period between September 1, 2002 and April 1, 2003.
To the extent practicable, an equal number of shares shall
be sold from the Gary Burrell GRAT and the Judith Burrell
GRAT. As of today, the Gary Burrell GRAT owns 2,491,707 shares
and the Judith Burrell GRAT owns 2,491,707 shares. Gary L.
Burrell beneficially owns 16,884,165 shares and Judith M.
Burrell beneficially owns 508,425 shares. The selling program
is designed by the trustee to raise sufficient proceeds to
enable the GRATs to distribute cash when making the GRATs
annual annuity distributions to the Burrells.
Additionally, Ruey-Jeng Kao has executed a Rule 10b5-1 selling
program that will allow for the sale of up to 1,000,000 shares
of Garmin Ltd. over a 12-month period commencing in September
2002. The selling program is part of Mr. Kaos ongoing
personal program for asset diversification. Mr. Kao currently
owns 8,902,481 shares of Garmin Ltd.
The companys board of directors approved both Rule
10b5-1 selling programs.
"The concept of Rule 10b5-1 will prove beneficial to
Garmin and its shareholders in the future," said Andrew
Etkind, general counsel and secretary of Garmin Ltd. "The
implementation of a personalized Rule 10b5-1 structured trading
program will allow significant shareholders to sell shares
without creating unnecessary volatility in Garmin stock. It
will also create a larger public float for our stock, as more
significant shareholders consider selling a portion of their
shares in the future. Garmin's three insider directors,
together with their spouses, children and trusts established
by them, currently own approximately 54 million shares of
Garmin or approximately 50% of the company's outstanding
shares. The dispositions under the above selling programs
will constitute approximately 1.9% of the outstanding shares."
Rule 10b5-1 allows corporate insiders to establish a prearranged
written plan to buy or sell a specified number of company
shares at a time when they are not in possession of material
inside information in order to gradually change their investment
portfolio, to minimize the market effect of share sales or
purchases by spreading them out over an extended period of
time, and to avoid concerns about initiating transactions
while in possession of material nonpublic information.
Notice on forward-looking statements:
This release includes projections and other forward-looking
statements regarding Garmin Ltd. and its business. Any statements
regarding the companys future financial position, revenues,
earnings, product introductions, plans and objectives are
forward-looking statements. The forward-looking events and
circumstances discussed in this release may not occur and
actual results could differ materially as a result of risk
factors affecting Garmin. Information concerning risk factors
that could affect Garmin's actual results is contained
in the Annual Report on Form 10-K for the year ended December
29, 2001 filed by Garmin with the Securities and Exchange
Commission (Commission file number 0-31983). A copy of Garmin's
2001 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html.
Through its operating subsidiaries, Garmin Ltd. designs,
manufactures, and markets navigation, communications and information
devices, most of which are enabled by GPS technology. Garmin
is a leader in the general aviation and consumer markets and
its products serve aviation, marine, general recreation, automotive,
wireless and OEM applications. Garmin Ltd. is incorporated
in the Cayman Islands, and its principal subsidiaries are
located in the United States, Taiwan and United Kingdom. For
more information, visit the investor relations site of Garmin
Ltd. at www.garmin.com or contact the Investor Relations department