<SUBMISSION>
<ACCESSION-NUMBER>0000950144-07-000335
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20070116
<ITEMS>1.01
<ITEMS>7.01
<ITEMS>9.01
<FILING-DATE>20070117
<DATE-OF-FILING-DATE-CHANGE>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>8-K
<ACT>34
<FILE-NUMBER>001-10177
<FILM-NUMBER>07535718
</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>8-K
<SEQUENCE>1
<FILENAME>g05107e8vk.htm
<DESCRIPTION>APPLICA INCORPORATED
<TEXT>
<HTML>
<HEAD>
<TITLE>Applica Incorporated</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
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>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Date of Report (Date of Earliest Event Reported): January&nbsp;16, 2007</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>APPLICA INCORPORATED</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Commission File Number 1-10177
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Florida</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>59-1028301</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of <BR>
incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification Number)</TD>
</TR>
<!-- End Table Body -->
</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="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
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<TR valign="bottom">
    <TD align="center" valign="top"><B>3633 Flamingo Road, Miramar, Florida</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>33027</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Registrant&#146;s telephone number, including area code: (954)&nbsp;883-1000
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2 below):</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>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</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>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</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>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-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">&#111;</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>
</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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








<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.<BR>
Item&nbsp;7.01 Regulation&nbsp;FD Disclosure.</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;17, 2007, Applica Incorporated announced that it had entered into a fifth amendment
to its merger agreement with affiliates of Harbinger Capital Partners Master Fund I, Ltd. and
Harbinger Capital Partners Special Situations Fund, L.P. (together, &#147;Harbinger Capital Partners&#148;)
after receipt of an offer by Harbinger Capital Partners to increase the merger consideration
payable for all outstanding shares of Applica that it does not currently own. The fifth amendment
(i)&nbsp;increased the merger consideration payable for all outstanding shares of Applica that Harbinger
Capital Partners does not currently own to $8.25 per share in cash, without interest, and (ii)
required 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 Capital Partners&#146; 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 up
to $3.3&nbsp;million. Except as expressly amended or modified by the fifth amendment, the provisions of
the merger agreement, as previously amended, remain in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing description of the amendment is qualified in its entirety by reference to the
actual terms of the amendment, a copy of which is attached as Exhibit&nbsp;2.1 to this Current Report on
Form 8-K and is incorporated by reference herein in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offer and amendment followed an increase to $8.05 per share of the price of the
unsolicited tender offer to purchase all outstanding shares of Applica&#146;s common stock that was
commenced by Apex Acquisition Corporation, a newly formed Florida corporation and an indirect,
wholly owned subsidiary of NACCO Industries, Inc. These recent developments are described in a
supplement to the definitive proxy statement that will be filed by Applica with the SEC and mailed
to Applica&#146;s shareholders on or about January&nbsp;18, 2007.
</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. The record date for the
reconvened meeting will remain November&nbsp;27, 2006. Shareholders of record at the close of business
on November&nbsp;27, 2006 may submit their proxies to vote their shares on the proposals until 11:00
a.m. Eastern Standard Time on January&nbsp;17, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the proposed transaction with affiliates of Harbinger Capital Partners,
Applica has filed a definitive proxy statement, proxy supplements, a Schedule&nbsp;14d-9 recommendation
statement and amendments thereto with the SEC. <B>Investors and security holders are urged to read
the definitive proxy statement, the proxy supplements, the Schedule&nbsp;14d-9 recommendation statement,
the amendments thereto and any other relevant documents filed with the SEC in connection with the
proposed transaction because they contain important information about Applica, the proposed
transaction with affiliates of Harbinger Capital Partners, the NACCO tender offer and related
matters</B>. The definitive proxy statement, several proxy supplements, the Schedule&nbsp;14d-9
recommendation statement and several amendments thereto have been mailed to Applica shareholders
and a supplement explaining the increase in the purchase price in the Harbinger Capital Partners
merger agreement described in the press release and an amended Schedule&nbsp;14d-9 recommendation
statement will be mailed to Applica&#146;s shareholders on or about January&nbsp;18, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors and security holders may obtain free copies of these documents as they become
available through the website maintained by the SEC at www.sec.gov. In addition, the documents
filed with the SEC may be obtained free of charge by directing such requests to Applica
Incorporated, 3633 Flamingo Road, Miramar, Florida 33027, Attention: Investor Relations ((954)
883-1000), or from Applica Incorporated&#146;s website at www.applicainc.com.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /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;Applica Incorporated and its directors, executive officers and certain other members of
Applica management may be deemed to be participants in the solicitation of proxies from Applica
shareholders with respect to the proposed transaction. Information regarding the interests of these
officers and directors in the proposed transaction has been included in the proxy statement filed
with the SEC. In addition, information about Applica&#146;s directors, executive officers and members of
management is contained in Applica&#146;s most recent proxy statement and annual report on Form 10-K,
which are available on Applica&#146;s website and at www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Exhibits.
</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>A copy of Amendment No.&nbsp;5 to the Agreement and Plan of Merger is attached as Exhibit&nbsp;2.1
to this Current Report on Form 8-K.</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>A copy of the press release is attached as Exhibit&nbsp;99.1 to this Current Report on Form 8-K.</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">



</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</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"><B>Date: January 17, 2007      </B>&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/ Terry Polistina
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Terry Polistina, Chief Operating&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Officer and
Chief Financial Officer of Applica
Incorporated&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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


<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>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;Index</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap 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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amendment No.&nbsp;5 to Agreement and Plan of Merger dated January&nbsp;16, 2007</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap 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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Applica Incorporated Press Release dated January&nbsp;17, 2007</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>g05107exv2w1.htm
<DESCRIPTION>EX-2.1 AMENDMENT NO. 5 TO AGREEMENT AND PLAN OF MERGER
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-2.1 Amendment No. 5 to Agreement and Plan of Me</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;2.1</B>
</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
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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>

<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>


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<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">V.P., General Counsel and<BR>
Corporate Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
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</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>g05107exv99w1.htm
<DESCRIPTION>EX-99.1 PRESS RELEASE
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1 Press Release</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


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


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>FOR IMMEDIATE RELEASE</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="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Contact:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investor Relations Department</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(954) 883-1000</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">investor.relations@applicamail.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPLICA
ENTERS INTO FIFTH AMENDMENT TO MERGER AGREEMENT WITH<BR>
HARBINGER CAPITAL PARTNERS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Harbinger Increases Consideration For Shares It Does Not Currently<BR>
Own To $8.25 Per Share in Cash</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Shareholder Meeting to Approve Merger Agreement to be Adjourned and<BR>
Reconvened on January&nbsp;23, 2007</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Applica Board Recommends that Shareholders Reject NACCO Revised Tender Offer</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Miramar, Florida </B>(January&nbsp;17, 2007) &#151; Applica Incorporated (NYSE: APN) today announced that
it has entered into a fifth amendment to its merger agreement with affiliates of Harbinger Capital
Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P.
(together, &#147;Harbinger Capital Partners&#148;) after receipt of an offer by Harbinger Capital Partners to
increase the merger consideration payable for all outstanding shares of Applica that it does not
currently own to $8.25 per share in cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Applica Board of Directors recommends that Applica shareholders vote &#147;FOR&#148; the adoption of
the amended merger agreement between Applica and affiliates of Harbinger Capital Partners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offer and amendment followed an increase to $8.05 per share of the price of the
unsolicited tender offer to purchase all outstanding shares of Applica&#146;s 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;Applica&#146;s Board has once again recommended that shareholders reject the revised NACCO offer
and NOT tender their shares in the NACCO offer. The Board reached its determination based, among
other factors, on the higher price being offered by Harbinger Capital Partners and the Board&#146;s
belief that, subject to the receipt of shareholder approval, all conditions to the consummation of
the Harbinger merger have been satisfied or will be satisfied at closing.
</DIV>

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

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Accordingly, the Board currently expects that the Harbinger merger will be completed within
one business day after the receipt of shareholder approval. The Board also believes that the
revised NACCO offer includes a number of conditions that create significant concerns as to whether
the revised NACCO offer can be completed. In particular, the Board believes that NACCO&#146;s minimum
tender condition, which requires that a majority of Applica&#146;s outstanding shares of common stock on
a fully diluted basis be tendered, presents a significant risk that the NACCO tender offer will not
be consummated, especially in light of Harbinger Capital Partners&#146; ownership of approximately 39%
of Applica&#146;s outstanding common stock and its existing merger agreement with Applica</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a condition to obtaining the increased merger consideration from affiliates of Harbinger
Capital Partners, Applica agreed to increase the termination fee payable if the Harbinger merger
agreement is terminated under certain circumstances to $7.0&nbsp;million plus up to $3.3&nbsp;million of
reasonable, documented, third party, out-of-pocket expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applica intends to convene the special meeting of shareholders at 11:00&nbsp;a.m. Eastern Standard
Time on January&nbsp;17, 2007, as previously scheduled, and adjourn the special meeting until 11:00&nbsp;a.m.
Eastern Standard Time on Tuesday, 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. The record date for the reconvened meeting will remain November&nbsp;27, 2006. Completion of the
transaction, which is expected to occur following the January&nbsp;23, 2007 meeting, is subject to
customary closing conditions. The transaction is not subject to any financing condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to vote their shares in favor of the Harbinger Capital Partners agreement,
shareholders should complete, date, sign and return the proxy card enclosed with the previously
distributed definitive proxy statement as soon as possible. Shareholders who have any questions
about the recommendation statement, the definitive proxy statement, the proxy supplement or the
merger or need assistance with the voting procedures, should contact Applica&#146;s proxy solicitor,
Georgeson Inc., at 17 State Street, New York, New York 10004 or call toll-free at (866)&nbsp;857-2624.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applica and its subsidiaries are marketers and distributors of a broad range of branded and
private-label small household appliances. Applica markets and distributes kitchen products, home
products, pest control products, pet care products and personal care products. Applica markets
products under licensed brand names, such as Black &#038; Decker<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>; its own brand names, such
as Windmere<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, LitterMaid<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, Belson<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> and Applica<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>; and
other private-label brand names. Applica&#146;s customers include mass merchandisers, specialty
retailers and appliance distributors primarily in North America, Mexico, Latin America and the
Caribbean. Additional information about Applica is available at www.applicainc.com.
</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: 12pt"><B>About Harbinger Capital Partners:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Harbinger Capital Partners investment team located in New York City manages in excess of
$5&nbsp;billion in capital through two complementary strategies. Harbinger Capital Partners Master Fund
I, Ltd. is focused on restructurings, liquidations, event-driven situations, turnarounds and
capital structure arbitrage, including both long and short positions in highly leveraged and
financially distressed companies. Harbinger Capital Partners Special Situations Fund, L.P. is
focused on distressed debt securities, special situation equities and private loans/notes in a
predominantly long-only strategy.
</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;The statements contained in this news release that are not historical facts are
&#147;forward-looking statements&#148;. These forward-looking statements are made subject to certain risks
and uncertainties, which could cause actual results to differ materially from those presented in
these forward-looking statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. Applica undertakes no
obligation to publicly revise these forward-looking statements to reflect events or circumstances
that arise after the date hereof. Among the factors that could cause plans, actions and results to
differ materially from current expectations are, 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>the failure to obtain approval of the merger from Applica shareholders;</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 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>claims by NACCO Industries, Inc. and HB-PS Holding Company, Inc. related to
the termination of their merger agreement with Applica;</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>changes in the sales prices, product mix or levels of consumer purchases of
small household appliances;</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>bankruptcy of or loss of major retail customers 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>changes in costs, including transportation costs, of raw materials, key
component parts or sourced products;</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>fluctuation of the Chinese currency;</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>delays in delivery or the unavailability of raw materials, key component
parts or sourced products;</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>changes in 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>exchange rate fluctuations, changes in the foreign import tariffs and
monetary policies, and other changes in the regulatory climate in the foreign
countries in which Applica buys, operates and/or sell products;</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>product liability, regulatory actions or other litigation, warranty claims or
returns of products;</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>customer acceptance of changes in costs of, or delays in the development of
new products;</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>increased competition, including consolidation within the industry; 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 and uncertainties detailed from time to time in Applica&#146;s
Securities and Exchange Commission (&#147;SEC&#148;) filings.</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">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the proposed transaction with affiliates of Harbinger Capital Partners,
Applica has filed a definitive proxy statement, proxy supplements, a Schedule&nbsp;14d-9 recommendation
statement and amendments thereto with the SEC. <B>Investors and security holders are urged to read the
definitive proxy statement, the proxy supplements, the Schedule&nbsp;14d-9 recommendation statement, the
amendments thereto and any other relevant documents filed with the SEC in connection with the
proposed transaction because they contain important information about Applica, the proposed
transaction with affiliates of Harbinger Capital Partners, the NACCO tender offer and related
matters</B>. The definitive proxy statement, several proxy supplements, the Schedule&nbsp;14d-9
recommendation statement and several amendments thereto have been mailed to Applica shareholders
and a supplement explaining the increase in the purchase price and termination fee in the Harbinger
merger agreement described in this press release and an amended Schedule&nbsp;14d-9 recommendation
statement will be mailed to Applica&#146;s shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors and security holders may obtain free copies of these documents as they become
available through the website maintained by the SEC at www.sec.gov. In addition, the documents
filed with the SEC may be obtained free of charge by directing such requests to Applica
Incorporated, 3633 Flamingo Road, Miramar, Florida 33027, Attention: Investor Relations ((954)
883-1000), or from Applica Incorporated&#146;s website at www.applicainc.com.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applica Incorporated and its directors, executive officers and certain other members of
Applica management may be deemed to be participants in the solicitation of proxies from Applica
shareholders with respect to the proposed transaction. Information regarding the interests of these
officers and directors in the proposed transaction has been included in the proxy statement filed
with the SEC. In addition, information about Applica&#146;s directors, executive officers and members of
management is contained in Applica&#146;s most recent proxy statement and annual report on Form 10-K,
which are available on Applica&#146;s website and at www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><DIV align="left"><DIV style="font-size: 3pt; margin-top: 13pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
Black &#038; Decker<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> is a trademark of The Black &#038; Decker Corporation, Towson, Maryland.

</DIV>


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