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FINAL CASH SETTLEMENT ON ITALIAN SALE TO FUND BIOELECTRICAL SENSOR TECHNOLOGY DEVELOPMENT FOR GAMMA BIOLOGICALS

 FINAL CASH SETTLEMENT ON ITALIAN SALE TO FUND BIOELECTRICAL
 SENSOR TECHNOLOGY DEVELOPMENT FOR GAMMA BIOLOGICALS
 HOUSTON, Jan. 6 /PRNewswire/ -- Gamma Biologicals, Inc. (AMEX: GBL), reported today the Dec. 31, 1991, settlement of the outstanding balance due on the April 30, 1990, sale of its former Italian subsidiaries, Delta Diagnostici, S.r.l., and Delta Biologicals, S.r.l.
 At the current owner's request, Gamma has accepted a lump-sum settlement of approximately $2.2 million, which includes interest through Dec. 31, 1991. Terms of the sale included a cash payment to Gamma of approximately $2.5 million and quarterly installment payments totaling approximately $3.4 million, plus interest, due through April 30, 1995, for intercompany receivables owed Gamma by its former subsidiaries. In consideration for early repayment of this receivable, Gamma agreed to discount the amount due by $250,000.
 The early payment does not affect Gamma's distributor agreement with Delta Biologicals, S.r.l., for Italy.
 Gamma will use the cash settlement primarily to fund development of products based on its new bioelectrical sensor technology and to reduce short-term borrowings.
 Initially, discounting the receivable will negatively affect earnings and may result in a net loss for the third quarter, ended Dec. 31, 1991. The third quarter traditionally is Gamma's weakest, primarily because the company halts product shipments in mid-December to accommodate its foreign distributors' holiday schedules.
 Gamma also announced that it has completed an agreement with a new German distributor, L.C.R. International, to market Gamma diagnostic reagent products throughout Germany. L.C.R. International estimates the German blood bank reagent market to be 68 million Deutschmarks. Gamma has not been represented in Germany in three years.
 Gamma Biologicals manufactures and markets a wide range of highly refined and specialized testing products, known as diagnostic reagents, as well as specialized instrument systems. The company markets to hospitals, blood banks, medical laboratories, physicians' offices and research institutions.
 -0- 1/6/92
 /CONTACT: Margaret O'Bannion, vice president-finance of Gamma, 713-681-8481/
 (GBL) CO: Gamma Biologicals, Inc. ST: Texas IN: MTC SU: TNM


GK -- NY014 -- 6768 01/06/92 09:13 EST
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Publication:PR Newswire
Date:Jan 6, 1992
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