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[November 05, 2004]

Richardson Announces New Credit Facility

LAFOX, Ill., Nov. 5 /PRNewswire-FirstCall/ -- Richardson Electronics, Ltd. today announced that it has successfully negotiated a new $109 million secured revolving credit facility with its current lending group.
The new five-year credit facility replaces existing credit lines and adds an accordion feature that can increase the credit line by up to an additional $25 million. The new agreement includes lowered interest rate spreads, relaxed leverage and coverage ratios, and increased borrowing base advance rates than the prior agreement. In addition, the Company can apply up to $38 million of the credit line towards the redemption and/or repayment of existing convertible debentures. The facility is principally secured by the company's trade receivables and inventory. Terms of the agreement can be found in the company's 8-K filing with the Securities and Exchange Commission.
Dario Sacomani, Senior Vice President and Chief Financial Officer, said, "We are pleased to extend the relationship with our lending group. Many aspects of the credit facility have been improved which provides increased financial flexibility to support our growth strategies and efforts to increase financial return."
This release includes certain "forward-looking" statements as defined by the SEC. Statements in this press release regarding the Company's business which are not historical facts represent "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's annual report on form 10-K. The Company assumes no responsibility to update the forward-looking statements in this release as a result of new information, future events, or otherwise.
About Richardson Electronics
Richardson Electronics, Ltd. is a global provider of "engineered solutions," serving the RF and wireless communications, industrial power conversion, security and display systems markets. The Company delivers engineered solutions for its customers' needs through product manufacturing, systems integration, prototype design and manufacture, testing and logistics. Press announcements and other information about Richardson are available on the World Wide Web at http://www.rell.com/investor.asp .
Richardson Electronics, Ltd.


CONTACT: Dario Sacomani, Senior Vice President and Chief FinancialOfficer, or Ed Richardson, Chairman and Chief Executive Officer, both ofRichardson Electronics, Ltd., +1-630-208-2340, info@rell.com


Web site: http://www.rell.com/investor.asp

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