MILWAUKEE, Jan. 19 /PRNewswire-FirstCall/ -- Smith Investment Company (Pink Sheets: SMIC) announced today that, to facilitate the proposed merger between Smith Investment and a subsidiary of A. O. Smith Corporation, Smith Investment distributed to the Smith Investment stockholders, in a previously announced taxable spin-off transaction, substantially all of Smith Investment's assets and liabilities, other than its shares of A. O. Smith. The spin-off transaction became effective at 12:01 a.m., central time, on January 19, 2009. Smith Investment stockholders will receive one membership unit in Smith Investment Company LLC, a limited liability company formed for purposes of the spin-off transaction, for each share of Smith Investment common stock held as of December 22, 2008, which was the record date for the spin-off transaction.

Smith Investment has distributed an information statement with respect to the spin-off transaction to the Smith Investment stockholders as of the record date. The information statement contains information about the spin-off transaction and Smith Investment Company LLC. Smith Investment stockholders are urged to read the information statement carefully because it contains important information regarding the spin-off transaction and Smith Investment Company LLC.

Membership units in Smith Investment Company LLC are subject to significant transfer restrictions intended to prevent public trading in the membership units and can only be transferred in certain specific limited circumstances set forth in Smith Investment Company LLC's operating agreement and described in the information statement distributed to Smith Investment stockholders.

About Smith Investment Company

Smith Investment Company (SMIC - PK), headquartered in Milwaukee, Wisconsin, owns a control position in A. O. Smith Corporation (NYSE: AOS).

This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

SOURCE Smith Investment Company