Technical Chemicals and Products Receives Appellate Court Opinion in HIV Saliva Collector Case.

Business Editors/Health, Medical & Legal Writers

POMPANO BEACH, Fla.--(BUSINESS WIRE)--April 24, 2000

Court Reverses Misappropriation of Trade Secret Claim But Affirms

Business Interference Judgement - Both Parties File for Rehearing 

Technical Chemicals and Products, Inc. (Nasdaq:TCPI), a developer, manufacturer and marketer of point-of-care medical diagnostic products, announced that the Florida Fourth District Court of Appeals in West Palm Beach, Florida recently issued its opinion in a legal matter relating to saliva collector technology for an HIV diagnostic test.

With respect to the major claim in this matter, on March 29, 2000, the appellate court reversed a lower court jury verdict and $500,000 judgment against Jack L. Aronowitz, TCPI's Chairman, President and Chief Technical Officer, and ruled that the evidence was insufficient to support liability for misappropriation of trade secrets. Previously, the trial jury found that TCPI had not misappropriated trade secrets. As to the other claim, in the same opinion the appellate court affirmed the jury's verdict and $328,000 judgment against the Company for interference with a business relationship.

Today, the Company filed a motion with the Florida Fourth District Court of Appeals for rehearing and rehearing en banc consideration by the full panel of appellate judges to rehear the business interference claim against the Company. The plaintiffs have also filed a motion to rehear the appellate court's reversal of the misappropriation of trade secrets claim. In the event the appellate court elects not to rehear this matter or it is not fully reversed in favor of the Company or the judgments set aside, management plans to vigorously pursue other available proceedings to have the judgment reversed or set aside.

"We are very pleased with the appellate court's finding on this important issue of misappropriation of trade secrets. However, this outcome is only part of the equation and we plan to continue to seek to set aside the adverse business interference judgment through all available legal channels," said Elliott Block, Ph.D., Chief Executive Officer of Technical Chemicals and Products, Inc.

TCPI has previously obtained appeal bonds staying enforcement of the judgments against the Company and Mr. Aronowitz. Until such time as the appellate court's decision is final, the Company anticipates maintaining the appeal bonds. If the appellate court reversal as to Mr. Aronowitz is upheld, the bond relating to the claim against Mr. Aronowitz will no longer be required. If the appellate court does not reverse or set aside the business interference judgement following rehearing, the Company believes that a bond may be required to stay enforcement of this judgment while the Company seeks other proceedings to set it aside. There can be no assurance that the Company will be successful, in whole or in part, in obtaining a rehearing or that upon the rehearing of these matters by the appellate court, that TCPI will be able to obtain any necessary bond or otherwise to stay enforcement of any judgment against the Company, or that TCPI will be successful in its pursuit of other proceedings to set aside judgments, if any.

Background

A lawsuit was brought against the Company in 1995 in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida (Joseph D'Angelo, Americare Transtech, Inc., Americare Biologicals, Inc. and International Medical Associates, Inc. v. Technical Chemicals & Products, Inc., Jack Aronowitz, Henry Schur, Analyte Diagnostics, Inc., John Faro and Nicholas Levandoski) - Case No. CACE 95-011256 - related to saliva collector technology for an HIV diagnostic test.

On December 30, 1998, a jury returned a verdict in this lawsuit finding that TCPI did not misappropriate the plaintiffs' trade secrets, but found that Mr. Aronowitz had intentionally misappropriated such trade secrets and assessed damages of $500,000 against him, individually. Additionally, the jury found that both the Company and Mr. Aronowitz intentionally interfered with the plaintiffs' business relationships and assessed approximately $328,000 in damages against TCPI in connection with this second claim, but awarded no damages against Mr. Aronowitz, individually, in connection with that claim. Separately, the jury assessed more than $4.1 million in damages against other unrelated corporate and individual defendants.

On January 29, 1999, TCPI and Mr. Aronowitz filed their appeal to the Florida Fourth District Court of Appeal in West Palm Beach, Florida - Case No. 4 DCA 99-00423.

TCPI, with headquarters in Pompano Beach, Florida, develops, manufactures and distributes a range of point-of-care medical diagnostic products for use at home, in physician offices, and other healthcare locations that are distributed through domestic and international channels. In addition, TCPI also owns a patent-protected proprietary portfolio of transdermal and dermal drug delivery technologies and skin permeation enhancers.

Copies of this and other news releases may be obtained free of charge by calling TCPI's automated fax service at [phone]. Additional information on the Company can be obtained from TCPI's Web site at http://www.techchem.com.

Information in this press release, including any information incorporated by reference herein, includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, and is subject to the safe-harbor created by such sections. The Company's actual results may differ significantly from the results discussed in such forward-looking statements.

Statements regarding the resolution of pending litigation, future liquidity and capital resources, as well as other statements contained in this report that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, and similar statements are forward-looking statements. These statements are based upon assumptions and analyses made by the Company in light of current conditions, future developments and other factors the Company believes are appropriate in the circumstances, or information obtained from third parties and are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results might differ materially from those suggested or projected in the forward-looking statements. Factors that may cause actual future events to differ significantly from those predicted or assumed include, but are not limited to: risks associated with uncertainty of litigation and appeals, and the payment of judgments not reversed on appeal or otherwise, and the Company's limited cash reserves and sources of liquidity.

For a complete description of the Company's products, business and liquidity, see the Company's Annual Report on Form 10-K for the year ended December 31, 1999.