Allied Devices Corp. Discloses Terms of Acquisition.BALDWIN, N.Y.--(BUSINESS WIRE)--July 20, 1998--Allied Devices Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALDV) completed the acquisition, effective July 1, 1998, of the assets and business of Atlantic Precision Products Inc. (APPI APPI American Psychiatric Publishing, Inc. APPI American Psychiatric Publishing Inc. APPI American Psychiatric Press, Inc. APPI Atmospheric Pressure Photoionization APPI Advanced Peer-to-Peer Internetworking APPI Advanced Plant Pharmaceuticals Inc. ). APPI was owned by a single shareholder who is now an integral part of the management team of Allied. The consideration was in three parts: approximately half in cash, 7% in equity, and the balance in performance-related future payments of cash. The block of equity was 250,000 shares of Allied's common stock. The performance consideration is a negotiated percentage of earnings of APPI, to be calculated for each of the first three years of operation as a division of Allied. The transaction was financed by The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. at favorable rates to the company. Mark Hopkinson Mark Hopkinson (October 8, 1949 - January 22, 1992) was a convicted murderer who was executed by the U.S. state of Wyoming in 1992 for the murders of Vincent Vehar, Beverly Vehar, John Vehar, and Jeffrey Green. , chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Allied Devices, commented, "We have whole-heartedly welcomed APPI and its employees to the Allied family. The merging of complementary strengths and talents in the two operations adds significant earning power Earning power Earnings before interest and taxes (EBIT) divided by total assets. earning power 1. The earnings that an asset could produce under optimal conditions. For example, AT&T may currently be earning $2. to the combined company. The transaction was structured to be anti-dilutive and will add substantially to future earnings per share. Our future will be built on the foundations of excellence that Allied and APPI both have, perpetuating the traditions of superior product, performance and customer support that we bring to our customers." Allied Devices is a leading manufacturer and distributor of high precision mechanical assemblies and components used in industrial and commercial equipment. These products, manufactured to exacting tolerances, provide precision motion control in such products as factory automation, robotics, aerospace and scientific instrumentation, semiconductor equipment, and medical diagnostic and operating room operating room n. Abbr. OR A room equipped for performing surgical operations. equipment. All statements contained herein that are not historical facts, including but not limited to statements regarding the company's current business strategy and the company's plans for future development and operations, are based upon current expectations. For factors which could affect the realization of those expectations, see the company's current quarterly report on Form 10-QSB.
CONTACT: Allied Devices Corp., Baldwin
Paul M. Cervino, 516/223-9100 x238
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