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NORTHGATE ANNOUNCES LEASE TERMINATION AND UPCOMING MOVE TO NEW LOCATION

 MINNEAPOLIS, Sept. 24 /PRNewswire/ -- Direct marketer Northgate Computer Systems, Inc., today announced that its lease for its current building at 7075 Flying Cloud Drive, Eden Prairie, Minn., has been terminated by the landlord, who also called in a $1.5 million letter of credit. In return, Northgate was given an extension of its occupancy until Nov. 7, 1993. The company expects to lease another facility, approximately one-fifth the size of the current facility, at a substantially lower monthly rental. The new facility will likely be located in a western suburb of Minneapolis.
 Northgate also announced that severe cash flow problems have adversely impacted the company's sales during the third quarter, which will end on Sept. 30. Due to the reduced sales, and the losses arising from the landlord's call on the letter of credit in connection with the lease termination, the company expects to incur a substantial loss in the third quarter.
 Khaled Ibrahim, Northgate acting president, said, "We continue to have a large backlog of orders from our loyal customers, but the cash flow problems have restricted our ability to fill the orders. Although the letter of credit call may further restrict our available cash, the move to a smaller facility, at lower rent, will reduce our cash requirements in future months."
 Northgate Computer Systems, Inc., is a leading direct marketer of a broad range of high performance computer systems, network file servers, proprietary keyboards and peripherals. Northgate is a wholly owned subsidiary of Northgate Computer Corporation (NCC), a publicly held company trading on the local over-the-counter market.
 -0- 9/24/93
 /CONTACT: Khaled S. Ibrahim, acting president, of Northgate Computer, 612-943-8181/


CO: Northgate Computer Systems, Inc. ST: Minnesota IN: CPR SU:

DS-DB -- MN009 -- 5463 09/24/93 14:00 EDT
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Publication:PR Newswire
Date:Sep 24, 1993
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