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EPITOPE SETTLES CLASS ACTION LITIGATION

 BEAVERTON, Ore., April 1 /PRNewswire/ -- Epitope Inc. (AMEX: EPT) today announced that it has entered into a stipulation of settlement with respect to a civil shareholders' class action suit filed against the company and certain of its directors and officers in June 1992. The stipulation has been submitted to the U.S. District Court for preliminary approval.
 Under terms of the proposed settlement, the defendants will contribute $550,000 cash to a settlement fund together with warrants to purchase 700,000 shares of Epitope Inc. common stock. The company's insurance carrier will fund the defendants' cash contribution. The warrants will be issued to members of the shareholders' class. The exercise price for each warrant will be determined by averaging the closing price of the common stock of Epitope for the 20 trading days comprising the 10 trading days immediately preceding the date of preliminary approval, the date of preliminary approval and the nine trading days immediately following preliminary approval. Based on the current market price of common stock, the company estimated that the warrants will expire not more than 120 days from date of issuance. The company will reflect settlement expense of $1,400,000 net of insurance recovery, in its operating results for the quarter ended March 31, 1993.
 "The company continues to deny the allegations made in the action. Nevertheless, we believe that this settlement is in the best interests of the company and our shareholders because it avoids the considerable expense, management distraction and uncertainty of continuing to defend the lawsuit," said Adolph J. Ferro, president and chief executive officer. He noted that exercise of any of the warrants issued in the settlement would also provide additional equity capital to the company.
 Epitope Inc. is an Oregon corporation utilizing biotechnology to develop diagnostic products for the detection of AIDS and other indications and, through its agricultural unit, Agritope Inc., superior plants and related products.
 -0- 4/1/93
 /CONTACT: Mary Hagen of Epitope, 503-641-6115/
 (EPT)


CO: Epitope Inc. ST: Oregon IN: MTC AGR SU:

MS-JB -- SE007 -- 1993 04/01/93 11:31 EST
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Publication:PR Newswire
Date:Apr 1, 1993
Words:346
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