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IMM ANNOUNCES OPERATING COST REDUCTIONS AS PART OF ITS CONTINUED COMMITMENT TOWARD 1992 PROFITABILITY

 IMM ANNOUNCES OPERATING COST REDUCTIONS AS PART OF
 ITS CONTINUED COMMITMENT TOWARD 1992 PROFITABILITY
 KING OF PRUSSIA, Pa., June 4 /PRNewswire/ -- International Mobile Machines Corporation (AMEX: IMM) today announced operating cost reductions relating to the downsizing of its non-Ultraphone operations, primarily the cessation of the recently formed new services division.
 In addition to the discontinuance of its new services division, the company has announced the reduction in staff of certain non-critical technical personnel and the separation of certain staff relating to IMM's digital cellular consulting agreement with Hughes Network Systems. As previously announced, the engineering and marketing services agreement, for which the company will have received $4.2 million, was scheduled to terminate on July 31, 1992. A small portion of the contract will be extended through Dec. 31, 1992.
 By these actions the company has reduced personnel-related costs more than $1.1 million on an annualized basis. Other operating costs will be reduced by an additional $300,000 for the remainder of 1992. A one-time charge of approximately $400,000 will be made in the second quarter to cover the cost associated with these actions.
 "The downsizing reflects management's ongoing efforts to review its programs and costs with the objective of increasing shareholder value," said William J. Hilsman, chairman and chief executive officer.
 In a simultaneous press release, the company also announced that Richard W. Pryor, president and chief operating officer, has resigned his position as an officer and director of IMM in order to pursue other interests.
 /delval/
 -0- 6/4/92
 /CONTACT: Marcia A. Bexley of IMM, 215-278-7831/
 (IMM) CO: International Mobile Machines Corporation; Hughes Network Systems ST: Pennsylvania IN: TLS SU:


MP-LJ -- PH005 -- 6914 06/04/92 09:22 EDT
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Publication:PR Newswire
Date:Jun 4, 1992
Words:284
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