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BICOASTAL WINS $42.9 MILLION ROYALTY AWARD AGAINST SEMI-TECH, PARENT OF THE SINGER COMPANY N.V., OVER USE OF SINGER TRADEMARK

 TAMPA, Fla., Nov. 17 ~PRNewswire~ -- Bicoastal Corporation (OTC Pink Sheets: SIGPQ) formerly known as The Singer Company and recently reorganized under Chapter 11 of the Bankruptcy Code, announced today that Judge Alexander L. Paskay, Chief Bankruptcy Judge for the Middle District of Florida issued a ruling that Semi-Tech (Global) Limited ("Semi-Tech") owes Bicoastal over $42.9 million in past due royalties and interest payments for the period from April 15, 1989 to April 30, 1991. Such royalties, which run in perpetuity, relate to the use by Semi-Tech and Semi-Tech Related Entities of the "SINGER" name and trademarks ("SINGER Marks"). The Bankruptcy Court also found that the methods used in calculating the amounts in this ruling are to be applied to all future periods. The amount of royalty, exclusive of interest, for the 12 months ended April 30, 1991 was approximately $20.2 million. If royalties have accrued since May 1991 at the same rate determined by Judge Paskay as to the prior nine quarters, the amount owed by Semi-Tech to Bicoastal today would exceed $75 million. The Bankruptcy Court indicated in its ruling that it would separately enter a final judgment against Semi-Tech consistent with its ruling.
 Under a May 26, 1989 Royalty Agreement, Bicoastal assigned its rights to the SINGER Marks to Semi-Tech. In return, Semi-Tech agreed to pay Bicoastal, in perpetuity, a royalty of 1 1~2 percent of Semi-Tech and its related entities' gross sales using the SINGER Marks. Disputes had arisen regarding whether Semi-Tech was excused from making payments, the definition of gross sales, and the definition of Semi-Tech Related Entities. In an earlier ruling, the bankruptcy court had disallowed all Semi-Tech's claims against Bicoastal and had found that Semi-Tech was obligated to make royalty payments to Bicoastal. The recent ruling establishes the amounts of past-due royalties and the method of calculation of future royalties.
 Semi-Tech Related Entities include The Singer Company, N.V. (traded on the New York Stock Exchange under "SEW") whose annual sales recently exceeded $800 million and whose products are sold primarily under the SINGER Marks. Semi-Tech Related Entities were found to also include unconsolidated affiliates of Singer N.V. in Japan, Thailand, India and Turkey. The Bankruptcy Court also found that the former Singer Europe became a Semi-Tech Related Entity on March 1, 1990. In calculating the $42.9 million, the Bankruptcy Court did not have the needed information to calculate royalties from India and Turkey, but directed that such calculation be made.
 Under the Royalty Agreement and a related Trademark Security Agreement, Bicoastal has a continuing security interest in the SINGER Marks. Under those agreements, if Semi-Tech fails to make royalty payments within 90 days after Bicoastal obtains a judicial determination that such payments are due and owing, Bicoastal may foreclose on and otherwise seek to recover the SINGER Marks back from Semi-Tech. Officials for Bicoastal indicated that, immediately upon entry of the final judgment against Semi-Tech, it would commence efforts to enforce and collect that judgment. Bicoastal will also commence proceedings to determine and secure payment of the past due and unpaid royalties and interest from Semi-Tech for the period from May 1, 1991 to the current date and assure payment on an ongoing basis. Pursuant to the Royalty Agreement, delinquent royalty payments accrue interest at a rate of 17 percent per annum.
 Officials for Bicoastal further indicated that although this ruling is highly positive, any benefit to creditors and holders of equity interests would be realized only at such time as funds are actually collected from Semi-Tech and available for distribution. The company indicated that it fully anticipated that Semi-Tech will appeal the ruling and resist the enforcement and collection of any judgments that are obtained. Semi-Tech is a Hong Kong-based company with worldwide operations and little or no known assets in the United States. The location and corporate structure of Semi-Tech and its Related Entities are likely to increase the difficulty of collections against it. Bicoastal officials also cautioned that future royalties could be higher or lower depending upon actual sales by Semi-Tech Related Entities of goods using the SINGER Marks.
 -0- 11~17~92
 ~CONTACT: Janet Hoer of Bicoastal Corporation, 813-264-7100~
 (SIGPQ SEW)


CO: Bicoastal Corp.; Semi-Tech (Global) Limited ST: Florida IN: SU:

JJ-SS -- FL011 -- 2068 11~17~92 17:15 EST
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Date:Nov 17, 1992
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