Consolidated Technology Group Ltd. Announces Settlement of Outstanding Indebtedness.NEW YORK--(BUSINESS WIRE)--August 13, 1998--Consolidated Technology Group Ltd. (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: COTG), ("COTG") announced today that its subsidiary, International Magnetic Imaging, Inc. ("IMI IMI International Masonry Institute (Washington, DC) IMI Israel Military Industries IMI Institute of the Motor Industry IMI International Market Insight IMI Imposto Municipal Sobre Imóveis (Portugal) "), consummated a settlement with the holders of certain Subordinated Promissory Notes which were issued by IMI in 1994 in connection with the acquisition of ten medical diagnostic imaging centers located in Florida, Kansas, Virginia and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. . COTG paid approximately $1,944,000, of which approximately $1,620,000 was paid in cash and approximately $324,000 was applied in payment of certain promissory notes due to IMI by one of the holders of the Subordinated Promissory Notes, in full settlement and satisfaction of the $7,648,098 outstanding balance of such notes as of June 30, 1998. As a result of the settlement, COTG realized, and will report for the third quarter ending September 30, 1998, an extraordinary gain of approximately $5,600,000 from the cancellation of such indebtedness. COTG also issued 333,000 shares of its common stock to the holders of such Subordinated Promissory Notes in satisfaction of IMI's contractual obligations under the agreements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the 1994 acquisition referred to above. Seymour Richter, President of COTG, stated "We are very pleased with the settlement of IMI's outstanding Subordinated Promissory Notes which will have a significant favorable impact on COTG's financial statements for the quarter ending September 30, 1998. COTG will eliminate a substantial amount of indebtedness from its consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. and expects to achieve a positive net worth as of September 30, 1998".
CONTACT: Consolidated Technology Group Ltd., New York
Seymour Richter, President
(212) 233-4500
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