Alpha Microsystems Holds Annual Meeting; Shareholders Approve up to $12 Million Additional Investment by ING Equity Partners.

SANTA ANA, Calif.--(BUSINESS WIRE)--Oct. 16, 1998--Alpha Microsystems Inc. (Nasdaq NM: ALMI), Friday announced that it held its Annual Meeting of Shareholders Thursday, Oct. 15, 1998, as scheduled.

A quorum of shareholders was present in person or by proxy, and all proposals submitted to the shareholders were approved, including one relating to an additional investment of up to $12 million by ING Equity Partners II L.P., as contemplated by the previously announced agreement with ING Equity Partners.

The first tranche contemplated by the agreement in the amount of $8 million provided the funding for the acquisition of Delta CompuTec, Inc., and was consummated in September. The closing of the second tranche in the amount of $7 million, which was contingent upon shareholder approval, is expected to close early next week.

All six company directors were reelected for the 1998-1999 term expiring at the Annual Meeting of Shareholders to be held in 1999. The directors are: Douglas J. Tullio, chairman, president and chief executive officer, Alpha Microsystems; Clarke E. Reynolds, chairman of the board of directors of Alpha Microsystems from 1991 through 1998; Rockell N. Hankin, chief executive of Hankin & Co.; Richard E. Mahmarian, president of REM Associates; Carlos D. De Mattos, director, chairman & chief executive officer of Matthews Studio Equipment Group; and Benjamin P. Giess, a principal of ING Equity Partners II L.P.

The shareholders also approved the 1998 Stock Option and Award Plan along with an amendment to the company's Articles of Incorporation to increase the authorized number of shares of common stock from 20 million shares to 40 million shares. The proposal to ratify the appointment of independent accountants, Ernst & Young LLP, to audit the consolidated financial statements of the company for the fiscal year ending Feb. 28, 1999, was also approved.

With more than 60 locations throughout North America, Alpha Microsystems is dedicated to providing superior computer services, including consulting, maintenance and networking for public and private institutions of all sizes. A 22-year-old Santa Ana company, Alpha Microsystems also serves the Internet/intranet market through its AlphaCONNECT(R) Division, which includes business-to-business software and technologies. For more information, visit the company's Web site at www.alphamicro.com.