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EXIDE ELECTRONICS GROUP, INC. ANNOUNCES TRIAL COURT RULING IN HENDRY MATTER

 RALEIGH, N.C., July 23 /PRNewswire/ -- Exide Electronics Group, Inc. (NASDAQ: XUPS), announced today that the United States District Court for the Northern District of California has issued an order in the pending suit brought by James Hendry against the company's principal subsidiary, ruling that certain claims may not be tried, but that a new trial be held on certain other claims.
 The original suit asserted various claims in excess of $62 million based on an alleged failure to pay commissions to Hendry in connection with sales arising out of certain contracts. A verdict in favor of Hendry in 1990 for $14.9 million was reversed by the Ninth Circuit Court of Appeals in 1992. Hendry sought a new trial on various issues, which the company vigorously opposed. In May 1993, the Ninth Circuit issued an order which upheld the reversal of the verdict in favor of Hendry and declined to specify which, if any, claims were to be tried. Instead, it sent the case back to the trial court, "which shall order retrial of such of the claims for relief other than that covered by our decision, which the district court determines are still viable."
 On July 22, 1993, the trial court determined that the plaintiff's breach of written contract, breach of written contract as orally modified and bad faith claims may not be tried. However, the trial court ordered a new trial to be held on the plaintiff's claims of breach of an oral contract, fraud and "quantum merit" (i.e., reasonable compensation to be paid for services rendered). The company took the position with the district court at the conference that its order of a new trial on those three claims constitutes reversible error by the trial court.
 Nicholas Costanza, vice president and chief legal officer for Exide Electronics, stated that, "We are pleased that the trial court has ruled that three of the plaintiff's claims are no longer viable. We are, however, disappointed that the other claims were deemed to be viable by the trial court, and we will defend those claims vigorously."
 The trail court did not set a trail date, indicating only that discovery and trial are to proceed promptly. All matters related to discovery have been referred to a separate Magistrate judge. The company cannot predict the scope of discovery, the trial schedule or the outcome of this new trial, and there can be no assurance as to the ultimate outcome of this matter.
 -0- 7/23/93
 /CONTACT: Marty R. Kittrell, Chief Financial Officer, Exide Electronics Group, Inc., 919-872-3020/
 (XUPS)


CO: Exide Electronics Group, Inc. ST: North Carolina IN: CPR SU:

CM-MM -- CH007 -- 5233 07/23/93 14:47 EDT
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Publication:PR Newswire
Date:Jul 23, 1993
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