A.O. Smith Selects Johnson City, Tennessee for Engineering Design Center.

March 12, 2008  Johnson City, Tennessee - A.O. Smith Corporation has selected Johnson City, Tennessee for its first engineering design center dedicated solely to residential water heater development, less than two years after purchasing the American Water Heater plant in Johnson City.

"Putting a residential engineering center for all our U.S. business here states to me that we're committed to this market and how we do business here," A.O. Smith's Kevin Wheeler said as company officials toured the facility - which occupies 42,000 square feet in part of the former Vaughn-Empire Furniture Company, - with local dignitaries. The site will host all facets of product development and testing and be home to about 55 engineers and other technicians who will move in over the next few weeks.

A.O. Smith's nearby plant, also in Johnson City, employs 1,200 people and cranks out about 8,000 water heaters a day. "We believe that Johnson City's vision of becoming a technology center would enable us not only to attract, but retain the engineering talent that we need to be competitive in the industry," said Wheeler, a senior vice-president and general manager over A.O. Smith's U.S. retail water heater division. "We're excited to be on the leading edge of that development."

The company spent $1.5 million converting a century-old, 265,000 square foot factory into a high-tech research and development facility that will allow A.O. Smith to pursue aggressive development plans for all its water heater lines in what Wheeler called a rapidly changing industry.

For more information on the A.O. Smith Corporation, visit their website at www.aosmith. com.