<SUBMISSION>
<ACCESSION-NUMBER>0000950144-07-000341
<TYPE>DEFR14A
<PUBLIC-DOCUMENT-COUNT>2
<FILING-DATE>20070117
<DATE-OF-FILING-DATE-CHANGE>20070117
<EFFECTIVENESS-DATE>20070117
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>APPLICA INC
<CIK>0000217084
<ASSIGNED-SIC>3634
<IRS-NUMBER>591028301
<STATE-OF-INCORPORATION>FL
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEFR14A
<ACT>34
<FILE-NUMBER>001-10177
<FILM-NUMBER>07535907
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>5980 MIAMI LAKES DR
<CITY>MIAMI LAKES
<STATE>FL
<ZIP>33014
<PHONE>3053622611
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>5980 MIAMI LAKES DRIVE
<CITY>MIAMI LAKES
<STATE>FL
<ZIP>33014
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WINDMERE DURABLE HOLDINGS INC
<DATE-CHANGED>19970224
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WINDMERE CORP
<DATE-CHANGED>19920703
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>SAVE WAY INDUSTRIES INC
<DATE-CHANGED>19830815
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>DEFR14A
<SEQUENCE>1
<FILENAME>g05109defr14a.htm
<DESCRIPTION>APPLICA INCORPORATED
<TEXT>
<HTML>
<HEAD>
<TITLE>Applica Incorporated</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Proxy Statement Pursuant to Section&nbsp;14(a)<BR>
of the Securities Exchange Act of 1934</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Filed by the registrant <FONT face="Wingdings">&#254;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by a
party other than the registrant <FONT face="Wingdings">&#111;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box:
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Preliminary proxy statement</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Revised definitive proxy statement</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Definitive additional materials</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-11(c) or Rule&nbsp;14a-12</TD>
</TR>
</TABLE>
</DIV>
<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>APPLICA INCORPORATED</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Name of Registrant as Specified in Its Charter)</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>N/A</B><BR>
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of filing fee (Check the appropriate box):
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>No fee required.</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Fee computed on the table below per Exchange Act Rules&nbsp;14a-6(i)(4) and 0-11.</TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Title of each class of securities to which transaction applies: Common Stock, par value $0.10
per share, of Applica Incorporated (&#147;Applica common stock&#148;)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aggregate number of securities to which transaction
applies: 15,191,632 shares of Applica
common stock 993,714 options to purchase shares of Applica common stock</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11(set forth the amount on which the filing fee is calculated and state how it was
determined):</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$8.25 per share of Applica common stock</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$8.25 minus weighted average exercise price of outstanding options of $4.48 per share subject
to option</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proposed maximum aggregate value of transaction:
$129,077,265.80</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total fee paid: $13,811.27</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Fee paid previously with preliminary materials.</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Check box if any part of the fee is offset as provided by Exchange
Act Rule&nbsp;0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the form or schedule and the
date of its filing.</TD>
</TR>
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount previously paid:<BR>
$9,910.49</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, schedule or registration statement no.:<BR>
Schedule&nbsp;14A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing party:<BR>
Applica Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:<BR>
November&nbsp;2, 2006</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount previously paid:<BR>
$865.87</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, schedule or registration statement no.:<BR>
Schedule&nbsp;14A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing party:<BR>
Applica Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:<BR>
December&nbsp;15, 2006</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount previously paid:<BR>
$851.04</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, schedule or registration statement no.:<BR>
Schedule&nbsp;14A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing party:<BR>
Applica Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:<BR>
December&nbsp;22, 2006</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount previously paid:<BR>
$861.37</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, schedule or registration statement no.:<BR>
Schedule&nbsp;14A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing party:<BR>
Applica Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:<BR>
December&nbsp;28, 2006</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount previously paid:<BR>
$861.37</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, schedule or registration statement no.:<BR>
Schedule&nbsp;14A</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing party:<BR>
Applica Incorporated</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:<BR>
January&nbsp;4, 2007</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g05109g05109a01.gif" alt="(applica)">
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>APPLICA INCORPORATED</B><BR>
3633 Flamingo Road<BR>
Miramar, Florida 33027
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FIFTH SUPPLEMENT TO PROXY STATEMENT</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>$8.25 PER SHARE UNDER<BR>
HARBINGER CAPITAL PARTNERS MERGER AGREEMENT</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL MEETING ADJOURNED UNTIL JANUARY 23, 2007</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear
Fellow Shareholder:</DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 0pt">January&nbsp;17, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On or about December&nbsp;6, 2006, we mailed to you a definitive proxy statement relating to a
special meeting of our shareholders for the purpose of considering and voting on a proposal to
adopt the Agreement and Plan of Merger, dated as of October&nbsp;19, 2006, among Applica and APN Holding
Company, Inc. and APN Mergersub, Inc. (which are subsidiaries of Harbinger Capital Partners Master
Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P., and which we refer to,
along with such funds, as Harbinger), pursuant to which, among other things, upon the merger
becoming effective, each outstanding share of Applica common stock, par value $0.10 per share
(other than shares owned by Applica or Harbinger), would be converted into the right to receive
$6.00 in cash, without interest, and Applica would become an indirect wholly owned subsidiary of
the Harbinger funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;14, 2006, the parties to the merger agreement amended the original merger
agreement to provide for an increase of $0.50 in cash per share over the $6.00 in cash per share
provided for in the original merger agreement. On December&nbsp;22, 2006, the parties to the merger
agreement amended the original merger agreement for a second time to provide for an additional
increase of $0.50 in cash per share over the $6.50 in cash per share provided in the amended merger
agreement. On December&nbsp;27, 2006, the parties to the merger agreement amended the original merger
agreement for a third time to provide for an additional increase of $0.50 in cash per share over
the $7.00 in cash per share provided in the amended merger agreement. On January&nbsp;3, 2007, the
parties to the merger agreement amended the original merger agreement for a fourth time to provide
for an additional increase of $0.25 in cash per share over the $7.50 in cash per share provided in
the amended merger agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;16, 2007, the parties to the merger agreement amended the original merger agreement
for a fifth time to provide for an additional increase of $0.50 in cash per share over the $7.75 in
cash per share provided in the amended merger agreement, such that upon completion of the merger,
each outstanding share of our common stock (other than shares owned by Applica or Harbinger) will
be converted into the right to receive $8.25 in cash, without interest. The original merger
agreement as so amended is referred to as the amended merger agreement. The fifth amendment to the
merger agreement is attached to the attached proxy supplement as Annex A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fifth amendment followed an increase to $8.05 per share of the price of the unsolicited
tender offer to purchase all outstanding shares of our common stock that was commenced by Apex
Acquisition Corporation, a newly formed Florida corporation and an indirect, wholly owned
subsidiary of NACCO Industries, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The attached proxy supplement contains additional information about the amended merger
agreement. We urge you to read this document carefully and in its entirety. We also encourage you,
if you have not done so already, to review the definitive proxy statement and the previous proxy
supplements thereto. You should consider the matters discussed under &#147;Special Note Regarding
Forward-Looking Statements&#148; on page 2 of the attached proxy supplement before voting. You may also
obtain additional information from documents we have filed with the Securities and Exchange
Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applica convened the special meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;17, 2007,
as scheduled, and adjourned the special meeting until 11:00&nbsp;a.m. Eastern Standard Time on January
23, 2007, without a vote on any proposal other than an adjournment. The proposals to be considered
at the special meeting will be submitted to a vote of Applica&#146;s shareholders at the reconvened
meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;23, 2007. Shareholders may submit their
proxies to vote their shares on the proposals until 11:00&nbsp;a.m.
Eastern Standard Time
on January&nbsp;23, 2007.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The record date for the special meeting on January&nbsp;17, 2007 did not change and the record date
will remain the same for the reconvened meeting on January&nbsp;23, 2007. Only holders of our common
stock at the close of business on November&nbsp;27, 2006 are entitled to notice of the reconvened
meeting and to vote at the reconvened meeting, except that shares of our common stock that are
beneficially owned by Harbinger are not eligible or entitled to vote at the reconvened meeting. All
shareholders of record are cordially invited to attend the reconvened meeting in person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your vote is very important, regardless of the number of shares of our common stock that you
own. </B>The merger cannot be completed unless the adoption of the amended merger agreement is approved
by holders of a majority of the outstanding shares of our common stock entitled to vote. If you do
not vote, it will have the same effect as a vote against the merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether or not you plan to attend the reconvened meeting in person, please complete, sign,
date and return promptly the proxy card enclosed with the definitive proxy statement. If you have
already submitted a proxy, you do not need to submit another proxy unless you wish to change your
vote. If you hold shares through a broker or other nominee, you should follow the procedures
provided by your broker or nominee. These actions will not limit your right to vote in person if
you wish to attend the reconvened meeting and vote in person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After careful consideration, our board of directors approved the amended merger agreement and
the merger and declared that the amended merger agreement and the transactions contemplated by the
amended merger agreement, including the merger, are advisable for, fair to and in the best interest
of Applica shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE &#147;FOR&#148; THE ADOPTION OF THE MERGER AGREEMENT, AS
AMENDED</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thank you in advance for your cooperation and continued support.
</DIV>






<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">By Order of the Board of Directors,
<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Harry D. Schulman
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Harry D. Schulman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chairman of the Board,
President<BR>
and Chief Executive Officer
</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities regulatory agency has
approved or disapproved the merger, passed upon the merits or fairness of the merger or passed upon
the adequacy or accuracy of the disclosure in this document. Any representation to the contrary is
a criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This supplement is dated January&nbsp;17, 2007 and will be mailed to Applica&#146;s shareholders on or
about January&nbsp;18, 2007.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">INTRODUCTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">ADJOURNMENT OF THE SPECIAL MEETING</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">UPDATE TO SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Purpose of the Meeting</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Required Vote</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Recommendation of Our Board of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Market Price of Our Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">THE MERGER</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Update to Background of the Merger</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Recommendation of Our Board of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">SUMMARY OF THE FIFTH AMENDMENT TO THE MERGER AGREEMENT</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">UPDATE TO QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING AND THE MERGER</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">UPDATE TO INTERESTS OF OUR DIRECTORS AND OFFICERS IN THE MERGER</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">WHERE YOU CAN FIND MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ANNEX:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Annex A &#151; Amendment No.&nbsp;5 to Agreement and Plan of Merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<!-- /TOC -->
</DIV>
<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INTRODUCTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information provided in the definitive proxy statement dated December&nbsp;4, 2006, previously
mailed to our shareholders on or about December&nbsp;6, 2006, as amended by the first, second, third and
fourth supplements, which we refer to in this supplement as the definitive proxy statement,
continues to apply, except as described in this supplement. To the extent information in this
supplement differs from, updates or conflicts with information contained in the definitive proxy
statement, the information in this supplement is the more current information. If you would like
additional copies of the definitive proxy statement, the first, second, third and fourth
supplements, this supplement, the Schedule&nbsp;14D-9 recommendation statement, the amendments thereto
or a new proxy card; or if you have questions about the merger or any of the foregoing, you should
contact our proxy solicitor, Georgeson Inc. at 17 State Street, New York, New York 10004 or call
them toll-free at (866)&nbsp;857-2624. Banks and brokerage firms, please call (212)&nbsp;440-9800. You may
also contact our Investor Relations Department at (954)&nbsp;883-1000. The definitive proxy statement
may also be found on the Internet at www.sec.gov. See &#147;Where You Can Find More Information&#148; on page
11 of this supplement. In this supplement, the terms &#147;we,&#148; &#147;our,&#148; &#147;ours,&#148; and &#147;us&#148; refer to Applica
Incorporated and its subsidiaries.
</DIV>
<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ADJOURNMENT OF THE SPECIAL MEETING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applica convened the special meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;17, 2007,
as scheduled, and adjourned the special meeting until 11:00&nbsp;a.m. Eastern Standard Time on January
23, 2007, without a vote on any proposal other than an adjournment. The proposals to be considered
at the special meeting will be submitted to a vote of Applica&#146;s shareholders at the reconvened
meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;23, 2007. Shareholders may submit their
proxies to vote their shares on the proposals until 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;23,
2007. The record date will remain the same for the reconvened meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The special meeting was convened at 11:00&nbsp;a.m. Eastern Standard Time at our executive offices
located at 3633 Flamingo Road, Miramar, Florida 33027, on January&nbsp;17, 2007, and, in accordance with
the planned adjournment, was adjourned and will be reconvened on January&nbsp;23, 2007 at 11:00&nbsp;a.m.
Eastern Standard Time at our executive offices located at 3633 Flamingo Road, Miramar, Florida
33027. References in this supplement to the &#147;special meeting&#148; are to the subsequently reconvened
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless you are present at the reconvened special meeting, we must receive your proxy card, if
we have not already, on or before the opening of the reconvened special meeting at 11:00&nbsp;a.m.
Eastern Standard Time on January&nbsp;23, 2007, in order for your shares to be voted at the reconvened
special meeting. If you have already submitted a proxy card but you wish to change your vote, we
must receive your new proxy card at or before the opening of the reconvened special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NO ACTION IN CONNECTION WITH THIS SUPPLEMENT IS REQUIRED BY ANY SHAREHOLDER WHO HAS PREVIOUSLY
DELIVERED A PROXY FOR USE AT THE SPECIAL MEETING AND WHO DOES NOT WISH TO REVOKE THAT PROXY OR
CHANGE HIS OR HER VOTE. SHAREHOLDERS WHO HAVE ALREADY VOTED ON THE PROPOSALS AND WHO WISH TO CHANGE
THEIR VOTE ON ANY PROPOSAL SHOULD FOLLOW THE PROCEDURES DESCRIBED BELOW IN RESPONSE TO THE QUESTION
&#147;CAN I CHANGE MY VOTE AFTER I HAVE MAILED IN MY PROXY CARD&#148; UNDER &#147;UPDATE TO QUESTIONS AND ANSWERS
ABOUT THE SPECIAL MEETING AND THE MERGER&#148; ON PAGE&nbsp;7 OF THIS SUPPLEMENT.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>UPDATE TO SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This update to the summary, together with the following updated question and answer section,
highlights important information discussed in more detail elsewhere in this supplement and in the
definitive proxy statement. This updated summary does not contain all of the information you should
consider before voting on the amended merger agreement and the merger. To understand the merger
more fully, you are urged to read carefully this entire supplement and the fifth amendment to the
merger agreement, a copy of which is attached as Annex A to this supplement, the definitive proxy
statement and all of its annexes before voting on whether to approve the amended merger agreement
and the merger. The amended merger agreement is the legal document that governs the merger.
</DIV>
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Purpose of the Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be asked to consider and vote on a proposal to adopt the Agreement and Plan of
Merger, dated as of October&nbsp;19, 2006, among Applica and Buyer and Merger Co (which are subsidiaries
of the Harbinger Funds), as amended by Amendment No.&nbsp;1 to the Agreement and Plan of Merger, dated
as of December&nbsp;14, 2006, Amendment No.&nbsp;2 to the Agreement and Plan of Merger, dated as of December
22, 2006, Amendment No.&nbsp;3 to the Agreement and Plan of Merger, dated as of December&nbsp;27, 2006,
Amendment No.&nbsp;4 to the Agreement and Plan of Merger, dated as of January&nbsp;3, 2007 and Amendment No.
5 to the Agreement and Plan of Merger, dated as of January&nbsp;16, 2007 among Applica and Buyer and
Merger Co, pursuant to which, upon the merger becoming effective, each outstanding share of Applica
common stock, par value $0.10 per share (other than shares owned by Applica or Harbinger), will be
converted into the right to receive $8.25 in cash, without interest.
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Required Vote</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Florida law, the affirmative vote of holders of a majority of the outstanding shares of
our common stock entitled to vote at the special meeting is necessary to adopt the amended merger
agreement. Thus, the affirmative vote of holders of common stock representing at least 7,585,151
votes will be required to approve the merger. A failure to vote your shares of our common stock or
an abstention will have the same effect as voting against the merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of our common stock that are beneficially owned by Harbinger are not eligible or
entitled to vote on the merger agreement or the merger at the special meeting.
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recommendation of Our Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After careful consideration, our board of directors approved the amended merger agreement and
the merger and declared that the amended merger agreement and the transactions contemplated by the
amended merger agreement, including the merger, are advisable for, fair to and in the best interest
of Applica&#146;s shareholders. <B>ACCORDINGLY, OUR BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE &#147;FOR&#148; THE
ADOPTION OF THE MERGER AGREEMENT, AS AMENDED</B>.
</DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Price of Our Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is listed on the NYSE under the trading symbol &#147;APN&#148;. The closing price of
our common stock on the NYSE as of January&nbsp;16, 2007, the last trading day prior to the public
announcement of our execution of the amended merger agreement was $8.14.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This supplement, and the documents to which we refer you in this supplement, contain
forward-looking statements about our plans, objectives, expectations and intentions.
Forward-looking statements include information concerning possible or assumed future results of
operations of our company, the expected completion and timing of the merger and other information
relating to the merger. Generally these forward-looking statements can be identified by the use of
forward-looking terminology such as &#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;expect,&#148; &#147;may,&#148; &#147;should,&#148;
&#147;plan,&#148; &#147;intend,&#148; &#147;project&#148; and similar expressions. For each of these statements, we claim the
protection of the safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. You should read statements that contain these words carefully. They
discuss our future expectations or state other forward-looking information, and may involve known
and unknown risks over which we have no control. Those risks include, without limitation:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>failure to obtain the approval of the merger proposal at the special meeting of
shareholders;</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the occurrence of any event, change or other circumstances that could give rise to the
termination of the amended merger agreement, including a termination under circumstances
that could require us to pay a termination fee to Buyer in the amount of $7.0&nbsp;million plus
up to $3.3&nbsp;million of reasonable documented, third party, out of pocket expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount of the costs, fees, expenses and charges related to the merger;
</TD>
</tr>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
<TD>
the failure of the merger to close for any reason;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disruption from the announcement of the merger, and the merger, making it more
difficult to maintain relationships with customers, employees or suppliers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the risk that the merger may not be completed in a timely manner or at all, which may
adversely affect our business and the price of our common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the potential adverse effect on our business, properties and operations because of
certain covenants we agreed to in the amended merger agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the uncertainty as to the outcome of the pending litigation filed by NACCO Industries,
Inc. and HB-PS Holding Company, Inc. related to the termination of their merger agreement
with us and the impact of such litigation on the merger; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other risks detailed in our filings with the Securities and Exchange Commission (the
&#147;SEC&#148;), including &#147;Item&nbsp;1A. Risk Factors&#148; in our Annual Report on Form 10-K for our fiscal
year ended December&nbsp;31, 2005. See &#147;Where You Can Find More
Information&#148; on page&nbsp;11.</TD>
</TR>

</TABLE>
</DIV>
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<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE MERGER</B>
</DIV>

<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Update to Background of the Merger</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The discussion below supplements the description in the definitive proxy statement of the
background of the merger.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;9, 2007, NACCO publicly announced that it had increased the per share offer price
of the NACCO offer to $7.90, net to the seller in cash, without interest, and amended the Schedule
TO accordingly. In accordance with the terms of the Harbinger merger agreement, we promptly
notified Harbinger on January&nbsp;9, 2007 of NACCO&#146;s amended offer price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;9, 2007, our board held a meeting and discussed the offers from NACCO and Harbinger
and its obligations under the Harbinger merger agreement. The meeting was attended by our senior
management and legal and financial advisors, as well as a representative of our board&#146;s independent
legal counsel. At the meeting, our board also discussed with the legal advisors the provisions of
the Harbinger merger agreement relating to competing transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the evening of January&nbsp;9, 2007, we sent NACCO a letter reiterating the board&#146;s
determination that NACCO&#146;s offer, as currently structured, fails to provide sufficient certainty of
completion and demanding that NACCO inform the board not later than 5:00 p.m. Eastern Standard Time
on January&nbsp;11, 2007, whether it is willing to amend its offer to remedy these concerns. During the
evening on January&nbsp;9, 2007, we notified Harbinger&#146;s legal advisor in writing that our board had
taken these steps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We convened the special meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;10, 2007, as
previously scheduled, and adjourned the special meeting until 11:00&nbsp;a.m. Eastern Standard Time on
Wednesday, January&nbsp;17, 2007, without a vote on any proposal other than an adjournment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;11, 2007, NACCO sent us a letter responding to the letter we sent NACCO on January
9, 2007 (the &#147;NACCO Response Letter&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the morning of January&nbsp;12, 2007, our board held a meeting and discussed the NACCO
Response Letter, the offers from NACCO and Harbinger and our obligations under the Harbinger merger
agreement. The meeting was attended by our senior management and legal and financial advisors, as
well as a representative of our board&#146;s independent legal counsel. Our board reviewed and
discussed the NACCO Response Letter and concluded that, although such letter addressed certain of
our board&#146;s concerns regarding a lack of certainty that NACCO&#146;s revised offer would be consummated,
it did not go far enough to remedy such concerns. The morning meeting was adjourned to allow
management and counsel to discuss with Harbinger&#146;s counsel certain aspects of the Harbinger merger
agreement. Following such discussions, our board meeting reconvened during the afternoon of January
12, 2007 to further discuss the offers from NACCO and Harbinger with management and the legal and
financial advisors. Our board determined to recommend that our shareholders reject the revised
NACCO offer and <U>not</U> tender their shares in the revised NACCO offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;16, 2007, NACCO publicly announced that it had increased the per share offer price
of the NACCO offer to $8.05, net to the seller in cash, without interest, and amended the Schedule
TO accordingly. In accordance with the terms of the Harbinger merger agreement, we promptly
notified Harbinger on January&nbsp;16, 2007 of NACCO&#146;s amended offer price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequently, on January&nbsp;16, 2007, Harbinger submitted to us a definitive binding offer to
enter into an amendment to its merger agreement which (i)&nbsp;increases the merger consideration
payable for all outstanding shares of Applica that it does not currently own to $8.25 per share in
cash, without interest, and (ii)&nbsp;requires Applica to convene the special meeting at 11:00&nbsp;a.m.
Eastern Standard Time on January&nbsp;17, 2007, as scheduled, and adjourn the special meeting until
11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;23, 2007, without a vote on any proposal other than an
adjournment. In consideration of the increase in the per share merger consideration, Applica
acceded to Harbinger&#146;s demand for increases in the termination fee payable by Applica if the merger
agreement is terminated under certain circumstances to $7&nbsp;million and Applica&#146;s corresponding
expense reimbursement obligation to up to $3.3&nbsp;million.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;16, 2007, our board held a meeting and discussed the offers from NACCO and
Harbinger and its obligations under the Harbinger merger agreement. The meeting was attended by
our senior management and legal and financial advisors, as well as a representative of our board&#146;s
independent legal counsel. Our board reviewed and discussed the amended offer from NACCO and the
proposed amendment to the Harbinger merger agreement with management and the legal and financial
advisors and determined that the Harbinger merger agreement, as proposed to be amended, is more
favorable to our shareholders than the amended offer made by NACCO. After lengthy discussions and
a thorough review with management and the legal and financial advisors, our board also determined
(i)&nbsp;that the merger agreement, as proposed to be amended, is advisable for, fair to and in the best
interests of our shareholders (other than Harbinger and its affiliates) and voted to approve and
adopt, and authorized senior management to enter into, the amendment proposed by Harbinger and (ii)
to recommend that our shareholders (A)&nbsp;vote &#147;FOR&#148; the adoption of the Harbinger merger agreement,
as proposed to be amended, and (B)&nbsp;reject the NACCO offer and <U>not</U> tender their shares in
the NACCO offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;16, 2007, we executed Amendment No.&nbsp;5 to the Agreement and Plan of Merger with
Harbinger, as amended, and thereafter on January&nbsp;17, 2007, issued a press release announcing the
amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We convened the special meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;17, 2007, as
originally scheduled, and adjourned the special meeting until 11:00&nbsp;a.m. Eastern Standard Time on
January&nbsp;23, 2007, without a vote on any proposal other than an adjournment. The proposals to be
considered at the special meeting will be submitted to a vote of our shareholders at the reconvened
meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;23, 2007.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recommendation of Our Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After careful consideration, the board of directors approved the amended merger agreement and
the merger. <B>THE BOARD OF DIRECTORS RECOMMENDS THAT OUR SHAREHOLDERS VOTE &#147;FOR&#148; THE ADOPTION OF THE
MERGER AGREEMENT, AS AMENDED.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The board of directors also recommends that, even if a shareholder does not vote with respect
to the amended merger agreement at this time, that such shareholder vote &#147;FOR&#148; the proposal to
adjourn or postpone the special meeting of shareholders, if necessary or appropriate, to solicit
additional proxies if there are insufficient shares present or represented at the meeting to
constitute a quorum or insufficient votes at the time of the meeting to adopt the amended merger
agreement or because the board, in its judgment, determines that an adjournment is required by law
or is otherwise in the best interests of us and our shareholders. The ability to adjourn or
postpone the special meeting will give the board of directors the flexibility to preserve the
existing transaction with Harbinger should the vote not be obtained by January&nbsp;23, 2007.
</DIV>

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<A name="112"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY OF THE FIFTH AMENDMENT TO THE MERGER AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following discussion summarizes the material provisions of the fifth amendment to the
merger agreement and is qualified by reference to the fifth amendment, a copy of which is attached
as Annex A to this supplement and is incorporated by reference into this supplement. The rights and
obligations of the parties are governed by the express terms and conditions of the merger agreement
(which is included as Annex A to the definitive proxy statement), as well as the first, second,
third, fourth and fifth amendments thereto, and not by this summary or any other information
contained in this supplement. We urge you to read the merger agreement and the first, second,
third, fourth and fifth amendments carefully and in their entirety, as well as the definitive proxy
statement, the first, second, third and fourth supplements and this supplement and the Schedule
14d-9 recommendation statement, as amended, before making any decisions regarding the merger.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;16, 2007, Applica and Buyer and Merger Co (which are subsidiaries of the Harbinger
Funds) entered into a fifth amendment to the Agreement and Plan of Merger, dated as of October&nbsp;19,
2006, as amended on December&nbsp;14, 2006, on December&nbsp;22, 2006, on December&nbsp;27, 2006, and January&nbsp;3,
2007. A complete copy of the fifth amendment is included as Annex A to this supplement and is
incorporated by reference into this discussion. The following discussion summarizes the material
changes to the merger agreement made by the fifth amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Increase in Merger Consideration</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fifth amendment to the amended merger agreement provides for an additional $0.50 per share
increase in the cash consideration to be received by our shareholders in the merger, from $7.75 to
$8.25 in cash, without interest, for each share of our common stock outstanding (other than shares
owned by Applica or Harbinger).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Increase in Termination Fee and Expense Reimbursement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a condition to Harbinger&#146;s agreement to increase the per share purchase price described
above, we agreed to amend the merger agreement to increase the termination fee and the expense
reimbursement obligation. Accordingly, the fifth amendment to the amended merger agreement
provides for an increase to $7&nbsp;million of the termination fee and an increase up to $3.3&nbsp;million of
the expense reimbursement obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Adjournment of Special Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the fifth amendment to the amended merger agreement, Applica covenanted to convene the
special meeting as scheduled at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;17, 2007. Applica
further covenanted that immediately thereafter, an officer of Applica would make a motion to
adjourn the January&nbsp;17 meeting until 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;23, 2007 and,
subject to obtaining the requisite vote therefor, the January&nbsp;17 meeting would be immediately
adjourned until the January&nbsp;23 meeting, which January&nbsp;23 meeting would have the same record date as
the January&nbsp;17 meeting, and no further action would be taken at the January&nbsp;17 meeting. Applica
complied with these covenants and convened the special meeting at 11:00&nbsp;a.m. Eastern Standard Time
on January&nbsp;17, 2007, as scheduled, and adjourned the special meeting until 11:00&nbsp;a.m. Eastern
Standard Time on January&nbsp;23, 2007, without a vote on any proposal other than an adjournment, and
the record date will remain the same for the reconvened meeting on January&nbsp;23, 2007.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>UPDATE TO QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING AND THE MERGER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following questions and answers are intended to address some commonly asked questions
regarding the fifth amendment to the merger agreement, the merger and the special meeting. These
questions and answers may not address all questions that may be important to you as our
shareholder. Please refer to the more detailed information contained elsewhere in this supplement
and in the definitive proxy statement.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Why are you mailing to me this supplement to the definitive proxy statement?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">We are mailing to you this supplement to the definitive proxy statement because on January
16, 2007, we entered into a fifth amendment to the amended merger agreement. This supplement
provides information with respect to the fifth amendment to the amended merger agreement and
certain other matters and updates the definitive proxy statement which was previously mailed
to you.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>What will I now receive in the merger?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Pursuant to the fifth amendment to the amended merger agreement, upon completion of the
merger, you will receive $8.25 in cash, without interest, for each share of our common stock
that you own.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Does the board of directors support the amended merger agreement?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Yes. Our board recommends that our shareholders vote <B>&#147;FOR&#148; </B>the adoption of the merger
agreement, as amended.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>When and where is the special meeting?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">The special meeting was convened on January&nbsp;17, 2007, at 11:00&nbsp;a.m. Eastern Standard Time at
our executive offices located at 3633 Flamingo Road, Miramar, Florida 33027, and, in
accordance with the planned adjournment, was adjourned and will be reconvened on January&nbsp;23,
2007 at 11:00&nbsp;a.m. Eastern Standard Time at our executive offices located at 3633 Flamingo
Road, Miramar, Florida 33027.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Why have you adjourned the meeting on January&nbsp;17, 2007 to January&nbsp;23, 2007?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Applica convened the special meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;17, 2007,
as scheduled, and adjourned the special meeting until 11:00&nbsp;a.m. Eastern Standard Time on
January&nbsp;23, 2007, without a vote on any proposal other than an adjournment. The proposals to
be considered at the special meeting will be submitted to a vote of Applica&#146;s shareholders at
the reconvened meeting at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;23, 2007. Shareholders
may submit their proxies to vote their shares on the proposals until the time of the
reconvened meeting on January&nbsp;23, 2007. The record date will remain the same for the
reconvened meeting.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Who can vote at the reconvened meeting?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">The record date has not changed. Only shareholders of record at the close of business on
November&nbsp;27, 2006, the record date will be entitled to vote at the reconvened meeting, except
that shares of our common stock that are beneficially owned by Harbinger are not eligible or
entitled to vote at the reconvened meeting.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>What if I already voted using the proxy you sent me earlier?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">First, carefully read and consider the information contained in this supplement. If you have
already delivered a properly executed proxy, you will be considered to have voted on the
amended merger agreement, and you do not need to do anything unless you wish to change your
vote.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Can I change my vote after I have mailed in my proxy card?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Yes. You can change your vote at any time before we vote your proxy at the special meeting.
You can do so by:</DIV></TD>
</TR>
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<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delivering a written notice to the corporate secretary of Applica before the
special meeting that states that you revoke your proxy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delivering a signed and later dated new proxy card before the special meeting in
accordance with the instructions included with the proxy card; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>attending the special meeting and voting in person.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Simply attending the special meeting will not revoke your proxy. If your shares are held in
&#147;street name&#148; by your broker, bank, dealer or other nominee, you must follow instructions
received from such broker, bank or nominee with this supplement or the definitive proxy
statement in order to revoke your vote or to vote at the special meeting.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>What do I do if I have not voted yet?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">After carefully reading and considering the information contained in this supplement and the
definitive proxy statement, please complete, sign and date your proxy and return it in the
postage-paid return envelope enclosed with the definitive proxy statement as soon as possible,
so that your shares may be represented at the special meeting. If you sign and send in your
proxy and do not indicate how you want to vote, we will vote your proxy in favor of approval
of the fifth amended merger agreement. Because the required vote of our shareholders is based
upon the number of outstanding shares of our common stock entitled to vote at the special
meeting, rather than upon the shares actually voted, the failure by the holder of any such
shares to submit a proxy or to vote in person at the special meeting, including abstentions
and broker non-votes, will have the same effect as a vote against approval of the fifth
amended merger agreement.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>What is the status of NACCO&#146;s offer?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Please read the section entitled &#147;Background of the Merger&#148; on pages 19-28 of the
definitive proxy statement, and &#147;Update to the Background of the Merger&#148; on page 3 of the first
supplement thereto, pages 3 and 4 of the second supplement thereto, page 4 of the third supplement
thereto and page 5 of the fourth supplement thereto, for a summary of our prior dealings with the
NACCO Industries, Inc. On January&nbsp;9, 2007, NACCO publicly announced that it had increased the per
share offer price of its tender offer to $7.90. On January&nbsp;9, 2007, the Applica board held a
meeting and discussed the offers from NACCO and Harbinger and its obligations under the Harbinger
merger agreement. During the evening of January&nbsp;9, 2007, Applica sent NACCO a letter reiterating
the board&#146;s determination that NACCO&#146;s offer, as currently structured, fails to provide sufficient
certainty of completion and demanding that NACCO inform the board not later than 5:00 p.m. Eastern
Standard Time on January&nbsp;11, 2007, whether it is willing to amend its offer to remedy these
concerns. During the evening on January&nbsp;9, 2007, Applica notified Harbinger&#146;s legal advisor in
writing that the Applica board had taken these steps. On January&nbsp;11, 2007, NACCO sent Applica a letter responding to the letter
Applica sent NACCO on January&nbsp;9, 2007.</DIV></TD>
</TR>






<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">During the morning of January&nbsp;12, 2007, the Applica board held a meeting and discussed NACCO&#146;s
response letter and concluded that although such letter addressed certain of the Applica&#146;s board
concerns regarding closing certainty, it did not go far enough to remedy such concerns. Following
such discussions, the Applica board meeting reconvened during the afternoon of January&nbsp;12, 2007 to
further discuss the offers from NACCO and Harbinger with management and the legal and financial
advisors. The Applica board determined to recommend that Applica&#146;s shareholders reject the revised
NACCO offer and <U>not</U> tender their shares in the revised NACCO offer.
</DIV></td>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
On January&nbsp;16, 2007, NACCO publicly announced that it had increased the per share offer price
of its tender offer to $8.05 and amended the Schedule&nbsp;TO accordingly. In accordance with the terms
of the Harbinger merger agreement, we promptly notified Harbinger on
January&nbsp;16, 2007 of NACCO&#146;s
amended tender offer price. In response, Harbinger submitted a
binding offer to amend the Harbinger merger agreement to increase the
merger consideration to $8.25 per share in cash, without interest,
conditioned upon increases in the termination fee payable by Applica
if the merger agreement is terminated under certain circumstances to
$7&nbsp;million and Applica&#146;s corresponding expense
reimbursement obligation up to $3.3&nbsp;million.
</DIV></tD>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
On January&nbsp;16, 2007, our board determined that the amended
merger agreement, as further amended by the
fifth amendment to increase the per share purchase price to $8.25, without interest, is more
favorable to our shareholders than the new offer made by NACCO, is advisable for, fair to and in
the best interests of our shareholders (other than
</DIV></TD>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Harbinger and its affiliates) and voted to approve and adopt, and authorized senior management
to enter into, the fifth amendment proposed by Harbinger. In addition, our board determined at such
meeting to recommend that our shareholders reject the NACCO offer and <U>not</U> tender their
shares in the NACCO offer.</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B><I>Q:</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Who can answer further questions?</I></B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">A:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If you would like additional copies of this supplement or the definitive proxy statement, the
recommendation statement, the amendments thereto or a new proxy card or if you have questions
about the merger, you should contact our proxy solicitor, Georgeson Inc. at 17 State Street,
New York, New York 10004 or call them toll-free at (866)&nbsp;857-2624. Banks and brokerage firms,
please call (212)&nbsp;440-9800. You may also contact our Investor Relations Department at (954)
883-1000.</DIV></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>UPDATE TO INTERESTS OF OUR DIRECTORS AND EXECUTIVE OFFICERS IN THE MERGER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In considering the recommendation of the board to vote in favor of the adoption of the merger
agreement, our shareholders should be aware that members of the board of directors and certain of
our executive officers have interests in the merger that are different from, or are in addition to,
the interests of Applica shareholders generally and that may create potential conflicts of
interest. During its deliberations in determining to recommend to its shareholders that they vote
in favor of the merger proposal, the board was aware of these interests. This section updates
certain information contained in the definitive proxy statement regarding the interests of our
directors and executive officers in the merger to reflect the revised per share purchase price set
forth in the amended merger agreement. Otherwise the information in the definitive proxy statement
under the heading &#147;Interests of our Directors and Executive Officers in the Merger&#148; remains
unchanged. Please refer to the more detailed information regarding such interests contained in the
definitive proxy statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Treatment of Stock Options</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the record date, there were 772,000 shares of our common stock subject to outstanding
stock options granted under our equity incentive plans to our current executive officers and
directors with a per share exercise price of less than $8.25. As of the effective time of the
merger, all options to acquire Applica common stock outstanding immediately prior to the effective
time of the merger, whether or not then exercisable or vested, shall become:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fully exercisable and vested; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shall be cancelled, retired and extinguished and shall no longer be outstanding
following the effective time of the merger.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the merger, each director and executive officer holding stock options that have an exercise
price of less than $8.25 per share will receive an amount in cash, without interest, less any
required withholding taxes, equal to the excess of $8.25 over the applicable per share exercise
price for each stock option held, multiplied by the aggregate number of shares of our common stock
into which the applicable stock option was exercisable immediately prior to the effective time of
the merger. Options with a per share exercise price equal to or in excess of $8.25 will be
terminated and cancelled without any consideration therefore if not exercised prior to the
effective time of the merger.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the outstanding vested and unvested options held by our
executive officers and directors as of the record date, and the consideration that each of them
will receive pursuant to the amended merger agreement in connection with the cancellation of their
options:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="41%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>No. of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercise Price of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying In-The-</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>In-The-Money Vested</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Money Vested and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and Unvested</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Resulting</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unvested Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Consideration</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Susan J. Ganz</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.3533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard Glazer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.3533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ware H. Grove</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brian Guptill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.7124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">148,579</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">J. Maurice Hopkins</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.3533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas J. Kane</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.3533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher B.
Madison</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Terry L. Polistina</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">554,550</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jerald I. Rosen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.3533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Harry D. Schulman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">550,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,212,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul K. Sugrue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.3533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,535</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and current reports, proxy statements and other information with the
SEC. You may read and copy any reports, proxy statements or other information that we file with the
SEC at its Public Reference Room, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC
at 1-800-SEC-0330 for further information on the public reference rooms. You may also obtain copies
of this information by mail from the Public Reference Section of the SEC, 100 F Street, N.E.,
Washington, D.C. 20549, at prescribed rates. Our public filings are also available to the public
from document retrieval services and the Internet website maintained by the SEC at www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports, proxy statements or other information concerning us may also be inspected at the
offices of the NYSE at 20 Broad Street, New York, NY 10005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any person, including any beneficial owner, to whom this supplement is delivered may request
copies of proxy statements and any documents filed with the SEC or other information concerning us,
without charge, by written or telephonic request directed to us at:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Applica Incorporated<BR>
3633 Flamingo Road<BR>
Miramar, Florida 33027<BR>
Attention: Investor Relations<BR>
Telephone: (954)&nbsp;883-1000<BR>
investor.relations@applicamail.com
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained in this supplement, the definitive proxy
statement and the annexes to this supplement and the definitive proxy statement, as well as the
documents which we refer to in the definitive proxy statement to vote on the merger agreement, as
amended. We have not authorized anyone to provide you with information that is different from what
is contained in this supplement or the definitive proxy statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This supplement does not constitute a solicitation of a proxy in any jurisdiction where, or to
or from any person to whom, it is unlawful to make a proxy solicitation.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">* * * * *
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your vote is important</B>. To vote your shares, please complete, date, sign and return the proxy
card enclosed with the definitive proxy statement as soon as possible. Please contact our proxy
solicitor, Georgeson Inc. at 17 State Street, New York, New York 10004 or call them toll-free at
(866)&nbsp;857-2624 if you have any questions about this supplement, the definitive proxy statement or
the merger or need assistance with the voting procedures.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>Annex A</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMENDMENT NO. 5 TO AGREEMENT AND PLAN OF MERGER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMENDMENT NO. 5, dated as of January&nbsp;16, 2007 (this &#147;<U>Fifth Amendment</U>&#148;), to the
Agreement and Plan of Merger, dated as of October&nbsp;19, 2006, by and among APN Holding Company, Inc.,
a Delaware corporation (&#147;<U>Parent</U>&#148;), APN Mergersub, Inc., a Florida corporation and a wholly
owned direct subsidiary of Parent (&#147;<U>MergerSub</U>&#148;), and Applica Incorporated, a Florida
corporation (the &#147;<U>Company</U>&#148;), as amended by Amendment No.&nbsp;1, dated December&nbsp;14, 2006, by
Amendment No.&nbsp;2, dated December&nbsp;22, 2006, by Amendment No.&nbsp;3, dated December&nbsp;27, 2006, and by
Amendment No.&nbsp;4, dated January&nbsp;3, 2007 (as amended, the &#147;<U>Merger Agreement</U>&#148;). Capitalized
terms used herein and not defined herein have the meanings ascribed thereto in the Merger
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to, and subject to the limitations set forth in, Section&nbsp;9.2 of the Merger
Agreement, the Merger Agreement may be amended, modified, or supplemented only by the written
agreement of the parties thereto;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Parent and MergerSub have conditioned their willingness to increase the Merger
Consideration on an increase in the Apple Termination Fee, and in order to induce Parent and
MergerSub to increase the Merger Consideration and in consideration therefor, the Company has
agreed to increase the Apple Termination Fee; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties hereto wish to amend the Merger Agreement as set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the
receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Amendment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Merger Consideration</U>. Section&nbsp;3.1(a) of the Merger Agreement is hereby amended by
deleting the word &#147;$7.75&#148; in both instances and replacing each with the word &#147;$8.25&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Apple Termination Fee</U>. Section&nbsp;8.3(a) of the Merger Agreement is hereby amended
by (i)&nbsp;deleting the words &#147;$4.0&nbsp;million&#148; and replacing them with the words &#147;$7.0&nbsp;million&#148; and (ii)
deleting the words &#147;$2.0&nbsp;million&#148; and replacing them with the words &#147;$3.3&nbsp;million&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Apple Shareholders Meeting</U>. Notwithstanding anything to the contrary in the Merger
Agreement, Parent, MergerSub and the Company hereby agree that the Apple Shareholders Meeting to be
held at 11:00&nbsp;a.m. Eastern Standard Time on January&nbsp;17, 2007 (the &#147;<U>January&nbsp;17 Meeting</U>&#148;)
shall be convened as scheduled and immediately thereafter a motion shall be properly made by an
officer of the Company to adjourn the January&nbsp;17 Meeting until 11:00&nbsp;a.m. Eastern Standard Time on
January&nbsp;23, 2007 (the &#147;<U>January&nbsp;23 Meeting</U>&#148;) and, subject to obtaining the requisite vote
therefor, the January&nbsp;17 Meeting shall be immediately adjourned until the January&nbsp;23 Meeting, which
January&nbsp;23 Meeting shall have the same record date as the January&nbsp;17 Meeting, and no further action
shall be taken at the January&nbsp;17 Meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Miscellaneous</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Governing Law</U>. This Fifth Amendment shall be governed by and construed in
accordance with the internal Laws of the State of Delaware applicable to Contracts made and wholly
performed in such state, without regard to any applicable conflict of laws principles; provided,
however, that the Merger will also be governed by the applicable provisions of the FCBA to the
extent required thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Counterparts</U>. This Fifth Amendment may be executed in two or more counterparts,
all of which will be considered one and the same instrument and will become effective when
counterparts have been signed by each of the parties and delivered to the other parties, it being
understood that each party need not sign the same counterpart.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Continued Force and Effect</U>. Except as expressly amended or modified herein, the
provisions of the Merger Agreement are and shall remain in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Authorization and Validity of Agreement</U>. The execution and delivery of this Fifth
Amendment by each of the parties hereto have been duly authorized and approved by their respective
boards of directors and no other corporate action on the part of the parties hereto is necessary to
authorize the execution and delivery of this Fifth Amendment. This Fifth Amendment has been, or
will be when executed and delivered, duly executed and delivered by each of the parties hereto, and
a valid and binding obligation of each of the parties hereto enforceable against each of the
parties hereto in accordance with its terms, except to the extent that its enforceability may be
subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting
the enforcement of creditors&#146; rights generally and by general equitable principles.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;Remainder of page intentionally left blank&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned has executed, or has caused to be executed, this Fifth
Amendment on the date first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">APN HOLDING COMPANY, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Philip Falcone
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Philip Falcone&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President and Senior Managing Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">APN MERGERSUB, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Philip Falcone
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Philip Falcone&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President and Senior Managing Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">APPLICA INCORPORATED<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Lisa R. Carstarphen
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Lisa R. Carstarphen&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" nowrap>V.P., General Counsel and Corporate Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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`
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