Del Global Technologies Resolves Shareholder Litigation, and Adjusts Exercise Price and Term of Previously Issued Warrants.VALHALLA, N.Y. -- Activates EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8 Million Romanian Order; Receives Final Court Approval of SEC Settlement Del Global Technologies Corp. (DGTC) ("Del Global") today announced the following developments: RESOLUTION OF SHAREHOLDER LITIGATION An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Del Global has resolved the dispute related to a motion filed on February 6, 2004 to enforce a January 2002 class action settlement agreement entered into by Del Global. In the February 2004 motion, the plaintiff class claimed damages due to Del Global's failure to timely complete a registration statement for the shares of common stock issuable upon exercise of certain warrants granted in the original class action settlement in 2002. In the February 2004 motion, the class sought damages of $1.25 million together with interest and costs, and a declaration that $2 million in subordinated notes issued as part of the 2002 class action settlement were immediately due and payable. In settling this matter, Del Global has agreed to modify the exercise, or "strike," price of the warrants issued in 2002 from $2.00 to $1.50 per share, and to extend the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. of such warrants by one year to March 28, 2009. In connection with this settlement, Del Global will recognize litigation settlement expense of approximately $455,000 during the fourth quarter of fiscal 2004, ending July 31, 2004. This settlement charge will be comprised of a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately $350,000 related to the value of warrant modifications, plus associated legal and valuation costs. ROMANIAN ORDER The Company announced that its Villa Sistemi Medicali subsidiary in Italy was awarded an order from the Ministry of Health for the country of Romania for 100 remote control radiographic/ fluoroscopic Fluoroscopic (fluoroscopy) An x-ray procedure that produces immediate images and motion on a screen. The images look like those seen at airport baggage security stations. Mentioned in: Hypotonic Duodenography ("R/F") systems. The Ministry of Health has secured its financing for this EUR 8 million (approximately US $9.8 million) order, and the Company has begun shipments to the customer. The Company currently expects that shipments under this order will be completed, and the revenue recognized, by the end of the second quarter of fiscal 2005. "This is another example of our ability to compete in the global market to supply the best value in medical imaging systems. The first remote controlled R/F system has been installed in the Children's Hospital A children's hospital is a hospital which offers its services exclusively to children. The number of children's hospitals proliferated in the 20th century, as pediatric medical and surgical specialties separated from internal medicine and adult surgical specialties. in Bucharest," said Walter F. Schneider, Del Global's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . OBTAINS FINAL COURT APPROVAL OF SEC SETTLEMENT Del Global also announced that it has obtained the final approval from the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of regarding the settlement with the Securities and Exchange Commission of previously announced claims against the Company. These claims had been initiated in connection with the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of financial statements filed by former management for the fiscal years 1997 through the third quarter of fiscal 2000. Del Global Technologies Corp. is primarily engaged in the design, manufacture and marketing of cost-effective medical imaging and diagnostic systems consisting of stationary and portable x-ray systems, radiographic/ fluoroscopic systems, dental imaging systems and proprietary high-voltage power conversion subsystems for medical and other critical industrial applications. Industrial applications for which Del Global supplies power subsystems include airport explosives detection, analytical instrumentation, semiconductor capital equipment and energy exploration. Statements about future results made in this release may constitute 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. 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 are based on current expectations and the current economic environment. Del Global cautions that these statements are not guarantees of future performance. These statements involve a number of risks and uncertainties that are difficult to predict, including, but not limited to, the ability of Del Global to implement its business plan; retention of management; changing industry and competitive conditions; obtaining anticipated operating efficiencies; securing necessary capital facilities; favorable determinations in various legal and regulatory matters; the ability of Del Global to meet its obligations under the agreement in principle with the U.S. Government regarding the proposed settlement of the DoD matter; the ability of Del Global to avoid a debarment de·bar tr.v. de·barred, de·bar·ring, de·bars 1. To exclude or shut out; bar. 2. To forbid, hinder, or prevent. from doing business with the U.S. Government; and favorable general economic conditions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's filings with the Securities and Exchange Commission. |
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