Malibu Boats Comments on Litigation Filed by Former Dealer

Any and All Boats That Malibu Sold to Tommy’s Boats Were Ordered by Tommy’s

Malibu Intends to Vigorously Defend Itself While Minimizing Any Short-Term Impact on Existing Dealer Partners and Customers

LOUDON, Tenn., April 11, 2024 (GLOBE NEWSWIRE) -- Malibu Boats, Inc. (Nasdaq: MBUU) (“Malibu” or the “Company”) today issued the following statement in connection with a lawsuit filed by Tommy’s Boats (“Tommy’s”) and its related parties in the United States District Court for the Eastern District of Tennessee on April 10, 2024:

“The Company intends to vigorously defend itself against the claims made by Tommy’s. Tommy’s was formerly a longtime dealer partner of ours, and we ended our relationship due to concerns about Tommy’s own conduct and its financial soundness. Indeed, Tommy’s lender is also suing it for violating the agreements Tommy’s used to finance the purchase of our boats. We will always act to protect our business, our customers and our shareholders.

As such, we believe it is important to clarify the following points:

• Any and all boats that Malibu sold to Tommy’s were ordered by Tommy’s. Malibu only sold boats to Tommy’s that Tommy’s ordered, and Malibu fulfilled its obligations under its agreements with Tommy’s. We value our relationships with our dealer partners, and we live up to our agreements.
  
• Malibu took action in light of Tommy’s sales of boats out of trust. In the fall of 2023, Malibu first became aware that Tommy’s was selling boats out of trust (selling boats that were bank collateral and not reporting the sales to the bank or repaying the bank). Upon learning that Tommy’s was selling out of trust, Malibu engaged with Tommy’s and M&T Bank, on numerous occasions, regarding Tommy’s financial position and potential paths forward. Those discussions did not result in a resolution that we believed was in the best interest of our shareholders, dealer partners and end-customers, and we therefore ended our relationship with Tommy’s. We do not currently have any dealership agreements in effect with Tommy’s.
  
• Tommy’s is already mired in litigation over its default on its lending agreements. Earlier this month and in response to, among other things, Tommy’s conduct in selling boats out of trust, M&T Bank sued Tommy’s for breach of its lending agreement. M&T has filed a motion to appoint a receiver over the assets of Tommy’s.
  
• Malibu is working to mitigate any disruption for our partners and customers – as well as our business. We have been working with our dealership network and are in discussions with strong dealer partners to limit any service gaps in markets previously served by Tommy’s. We remain committed to serving Malibu’s end-users in all our markets.”