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IBM AND VIDEOCART SIGN CLOSE-OUT AGREEMENT

 CHICAGO, Feb. 18 /PRNewswire/ -- IBM announced that it signed a close-out agreement with VideOcart, Inc. to end the companies' manufacturing and financing relationships.
 The two companies first announced a strategic alliance in July 1991, with IBM agreeing to manufacture a VideOcart-designed ten button display unit. However, based on in-market experience with this unit during 1992 VideOcart elected to stop production and proceed with a redesigned touchscreen unit. VideOcart and IBM agreed to end the IBM manufacturing contract last fall, and IBM agreed to provide long-term financing on the remaining amounts owing to IBM by VideOcart. On Feb. 12, 1993, the two companies signed a close-out agreement.
 Under the close-out agreement, VideOcart's obligations to IBM would be completely fulfilled via a lump sum payment of $17 million and repricing of IBM's existing warrant to purchase 540,000 shares of VideOcart stock from $6.00 per share to $4.625 per share. Under the agreement, until such time as VideOcart makes the $17 million lump sum payment, it will continue making monthly payments to IBM under the long- term debt facility, in the reduced amount of $1.0 million per month.
 VideOcart retains ownership of all 50,000 display units manufactured by IBM under the original agreement.
 -0- 2/18/93
 /CONTACT: Kathy Riemer of IBM, 312-245-7995/
 (VCRTC IBM)


CO: VideOcart, Inc.; IBM Corp. ST: Illinois, New York IN: CPR SU:

SH -- NY045 -- 7853 02/18/93 11:29 EST
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Publication:PR Newswire
Date:Feb 18, 1993
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