American Building Control Received Arbitrator's Report Regarding Purchase Price Adjustment Dispute.Business Editors LEWISVILLE, Texas--(BUSINESS WIRE)--Dec. 18, 2003 American Building Control, Inc. (Nasdaq:ABCX) announces that an independent arbitrator has rendered a final determination on the Company's dispute against Honeywell regarding the post-closing purchase price adjustments, from the sale of the closed-circuit television closed-circuit television Noun a television system used within a limited area such as a building Noun 1. closed-circuit television business (the "CCTV CCTV abbr. closed-circuit television CCTV closed-circuit television Business") to Honeywell International ("Honeywell"). According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the arbitrator's report, an adjustment of $888,211 in the Company's favor should be made to the purchase price. The $888,211 purchase price adjustment determined by the arbitrator's report, which is final and binding with respect to the purchase price adjustment, along with a $5.4 million purchase price holdback hold·back n. 1. a. The act of holding back. b. Something held back. 2. A device that retains or restrains. 3. plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , brings the total amount owed by Honeywell to the Company to approximately $6.5 million. In December 2002, the Company consummated the sale of assets and liabilities related to the CCTV Business to Honeywell for $36 million. According to the Asset Purchase Agreement, $5.4 million of the purchase price was held back by Honeywell, to be paid to the Company in three installments, every six months beginning in June 2003, less purchase price adjustments or claims. Honeywell challenged the Company's proposed upward adjustment to the closing balance sheet, which led to the arbitration. The Company is currently in discussions with Honeywell to arrange for payments. About American Building Control, Inc. With headquarters located in the Dallas suburb of Lewisville, Texas Lewisville is a city in Denton County and Dallas County, Texas (USA). As of the 2000 census the city had a total population of 77,737. With strong population growth continuing into the new millennium, the U.S. Census Bureau gives a 2006 population estimate of 94,589. , American Building Control Inc. (formerly Ultrak, Inc.) is a global leading provider of access control, consumer/do-it-yourself, industrial video product, mobile video-product, and alarm-management products as well as services. For more information on American Building Control please call 800-221-7225. Forward-Looking and Cautionary Statements Except for the historical information and discussions contained herein, certain statements included in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission. |
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