• Agreement Reflects Mutual Commitment to Long-Term Value Creation & Stability
• Ruger to Increase Beretta Holding Ownership Cap to 25% of the Company
• Ruger to Grant Beretta Holding the Ability to Nominate Up to Two Independent Board Members

Sturm, Ruger & Company, Inc. (NYSE: RGR) (“Ruger” or the “Company”) announced that it has entered a Strategic Cooperation Agreement (“Agreement”) with Beretta Holding S.A. (“Beretta Holding”), the Company’s largest shareholder. The Agreement reflects a shared commitment to long-term value creation, constructive engagement, and stability for Ruger’s shareholders, employees, customers and industry partners.

Under the terms of the Agreement, Ruger is expected to allow Beretta Holding to increase its investment to up to 25% of the Company’s outstanding shares. The minimum partial tender offer price shall be $44.80 per share in cash – which represents a ~20% premium to the Company’s 60-day volume-weighted average share price prior to Beretta Holding’s tender offer announcement. Such tender offer has not yet commenced and will be subject to applicable regulatory approvals.

In connection with this increased investment, Beretta Holding will have the right to nominate up to two independent directors following the 2026 Annual Meeting of Shareholders and regulatory approval. At that time, the Company will temporarily expand the Board. The nominees will be subject to Ruger’s Nominating and Governance Committee process and qualification criteria.

As part of the agreement, Beretta Holding has committed to a three-year standstill, during which it will not, among other things, initiate or support any proxy contest or similar action. Over that period, Beretta Holding will also vote its shares in alignment with the Ruger Board’s recommendations on all matters (except in cases where leading independent proxy advisory firms, ISS or Glass Lewis, issue an adverse recommendation or in certain extraordinary transactions not involving Beretta Holding).

Additionally, Beretta Holding has withdrawn its director nominations for the 2026 Annual Meeting of Shareholders and only Ruger Board-recommended candidates will be up for election at the meeting.

These provisions, together with other provisions in the Agreement, are designed to safeguard Ruger’s independence and stability while increasing alignment of Beretta Holding with all shareholder interests.

“This agreement is strategically valuable and will benefit all Ruger stakeholders,” said John Cosentino, Chairman of the Board of Ruger. “As a Board, our responsibility and duty is to act in the best interests of all shareholders. This agreement provides stability, avoids further expense and distraction, and creates a framework for productive engagement with Beretta Holding while preserving Ruger’s independence and governance standards.”

The Agreement is positive for Ruger and its shareholders and enables Ruger and Beretta Holding to explore avenues for commercial cooperation in a manner that complies with all applicable laws. Importantly, Ruger will remain an independent U.S. public company – preserving its brand, heritage and strategic direction – while benefiting from Beretta Holding’s admirable legacy and global industry leadership.

“We are pleased to have reached this Agreement with Ruger. This cooperation is fully aligned with the Group’s strategy to further strengthen our presence in the United States, a key market where we have been active for several decades, and it reflects our commitment to continued longterm development.” said Dott. Pietro Gussalli Beretta, Chairman and CEO of Beretta Holding. “We are eager to work with the Company toward our shared goal of strengthening execution and positioning Ruger for value creation.”

Further information regarding the Agreement, and a copy of the Agreement, will be made available in a Current Report on Form 8-K to be filed by the Company with the United States Securities and Exchange Commission.

CZ-USA announced a series of leadership transitions designed to ensure continuity and support the company’s continued expansion in the U.S. market. Following a year of strong revenue and profit growth, these changes position the organization for sustained success and a seamless evolution of leadership.

After two years of rebuilding the CZ brand in the U.S. market, Petr Pistelak, President of CZ-USA, will transition back to Colt CZ Group in the Czech Republic, where he will oversee international sales initiatives for Colt and Dan Wesson. This transition is driven by family medical considerations.

Pistelak’s primary objective during his tenure was to stabilize the U.S. organization and build a team capable of sustaining long-term growth in revenue and operations. He has been the driving force behind the successful turnaround of CZ-USA, making critical hires and bringing a level of energy and focus that has inspired continued momentum across the company. His leadership, passion, and commitment have left a lasting impact on the organization and its people.

Petr Palecek will assume the role of Chief Executive Officer and Head of Operations for CZ-USA. In this position, he will oversee operations, including logistics, manufacturing, finance, legal, and human resources. Palecek joins CZ-USA from Ceska zbrojovka (CZ), where he served as Chief Human Resources Officer and a member of Board of Directors for over 2 years. Prior to that, he worked with CZ as an adviser from McKinsey & Company. McKinsey & Company is a global management consulting firm specializing in strategy, operations, and organizational transformation.

Palecek is a C-level executive with over 10 years’ experience in strategy and operations. While at McKinsey & Company, Palecek led transformation and business development for various clients. He is experienced in driving large scale transformations across the Middle East, Europe and North America in technology, banking, and manufacturing industries.

John Dain, who joined CZ-USA two years ago as Executive Vice President of Sales, will take on the role of President and Chief Commercial Officer. During his tenure, Dain played a vital role in advancing the company’s strategic direction and accelerating growth across retail and channel partnerships, including the continued development of the Dan Wesson brand. In his new role, he will lead sales, marketing, and product management, with responsibility for revenue and profit growth, brand leadership, market expansion, and customer experience across the United States.

Dain brings more than a decade of leadership experience in the firearms industry, with a proven track record of driving revenue growth, strengthening customer alignment, and building enduring brand momentum. He began his career at Sig Sauer in customer service and advanced through key roles in product management, national accounts, retail leadership, and executive sales. Earlier in his career, he served in the U.S. Army as an infantry team leader—an experience that continues to shape his leadership style, emphasizing discipline, accountability, and team development.

Tom Taylor, who has served as Chief Marketing Officer at CZ-USA over the past year, will work closely with Dain to ensure a seamless integration of marketing and product management initiatives. He is concurrently transitioning to Colt CZ Group as Chief Business Development Officer – North America. In this role, Taylor will collaborate business opportunities across CZ-USA, Colt, Dan Wesson, Colt Canada, Colt Optics, and other U.S.-based business initiatives.

Taylor brings more than 20 years of experience in sales, marketing, and product management leadership roles at Sig Sauer, Smith & Wesson, and Mossberg, along with over two decades in various sales and marketing positions at The Coca-Cola Company.

As John Dain and Petr Palecek assume full responsibility for the U.S. business, they will collaborate closely with outgoing President Petr Pistelak and CMO Tom Taylor to ensure a smooth and effective transition across all areas of the organization.