Ceramics Process Systems Announces Debt Conversion.CHARTLEY, Mass.--(BUSINESS WIRE)--July 22, 1998--Ceramics Process Systems Corporation (CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. ) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CPSX) today announced that it has completed the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its balance sheet by eliminating all Company debt other than trade payables. As of the end of the Second Fiscal Quarter, all subordinated convertible notes issued by the Company have been converted into the Company's common stock by noteholders, and all non-convertible debt has been paid in cash by the Company. Grant Bennett, President, said: "We believe the Company's significantly strengthened balance sheet provides the financial foundation needed to finance future growth in the metal matrix composite Metal matrix composite A material in which a continuous metallic phase (the matrix) is combined with another phase (the reinforcement) that constitutes a few percent to around 50% of the material's total volume. business. We continue to be pleased with the increasing market acceptance of the Company's metal matrix composites for use in thermal management of electronics." In 1994 the Company issued subordinated notes convertible into the Company's common stock. A total of 4,463,916 shares of common stock have been issued to noteholders upon conversion of the notes. The total number of shares of common stock currently outstanding after conversion of all convertible debt is 12,307,186. In addition, the Company retired $620,100 of debt principal and 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. during the first two fiscal quarters of 1998 using funds generated from operations. Although to the Company's knowledge the former noteholders do not have immediate plans to sell stock issued upon conversion, pursuant to terms of the original note purchase agreement the Company will shortly file a registration statement with the Securities and Exchange Commission to register these shares. CPS develops, manufactures and markets advanced metal-matrix composites for housing and providing thermal management of high-density electronics. The Company's products are primarily used in equipment for wireless and satellite communications, and motor controllers. This release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Various factors could cause actual results to differ materially from those projected in such statements. These factors include, but are not limited to, a general economic or business downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in 1998, or a downturn in the electronics industry.
CONTACT: Ceramics Process Systems Corporation
Grant Bennett, 508/222-0614 ext 18
E-mail: gbennett@alsic.com
Web Site: www.alsic.com
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