Comparator Systems appoints new president and obtains judgment against former vice president.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--July 8, 1996--Comparator Systems Corp. (IDID) announced that effective July 5, 1996, Armond J. Schroeder, 57, has been appointed by the board of directors as its new president and to serve on the company's board of directors until the next Stockholders Meeting.

Schroeder's appointment fills the vacancy created by the resignation on June 28, which the company accepted with regret, of Richard E. Floegel as president and director.

Robert Reed Rogers, 67, chairman of the board of the company, also announced his intention to retire within the current year at the earliest practicable opportunity. Rogers said that thereafter he will be available as needed to serve as a consultant to the company.

Two years ago, in March 1994, the company announced that Karen Kay Churchill, its corporate secretary/vice president administration, had been dismissed after it was discovered that in 1992 and 1993 she had improperly, and without authorization, issued and illegally freed of restrictions shares of the company's stock for herself, her family and her friends, and that she had also misapplied company funds to satisfy her personal obligations.

In March 1994 the company announced its intention to file a civil action against Churchill and twenty-five or more other defendants. On May 30, 1996, the company obtained judgment against Churchill, a.k.a. Karen Hitt, Karen Towt, Karen Churchill-Towt, in the United States Bankruptcy Court in San Diego in the amount of $118,724.56 plus interest, in cash, and an order for the return of 12,604,363 shares of the company's stock, Rogers said.

He said the company intends to collect under the judgment, as well as to continue with the civil suit it filed in Orange County (Calif.) Superior Court on Oct. 27, 1995, against the remaining defendants, in its ongoing effort to recover cash and an additional 17,585,983 shares of the company's stock wrongfully taken from the company.

Meanwhile, Comparator Systems is proceeding with steps to clear its name of a false allegation that it stole technology from a Scottish company, Rogers said. The source of this untrue and unfounded charge, which has recently been widely published as a supposed fact, was not the Scottish company in question, which has never made such a claim, Rogers said.

According to Rogers, the source was solely Churchill, who promulgated this, among other false allegations about the company and its officers, following her termination by the company in 1994.

CONTACT: Comparator Systems Corp.

Marianne Bedford (shareholder relations), 714/851-4300