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EXIDE ELECTRONICS GROUP, INC. ANNOUNCES SALE OF COMPANY STOCK AND RESULTS OF SETTLEMENT OF CONFERENCE IN HENDRY MATTER

 RALEIGH, N.C., Oct. 14 /PRNewswire/ -- Exide Electronics Group, Inc. (NASDAQ: XUPS), announced today that Nippon Electric Industry, Inc. (NEI), the holder of its 5,000 shares of Series C Preferred stock issued in 1991, has recently completed the sale of those shares after their conversion into common stock.
 The 5,000 shares of Series C Preferred stock were issued in connection with the development of a relationship between NEI and the company and represented an investment in the company of $5,000,000 in 1991. Consistent with the evolution of that relationship, in August 1993, NEI converted for sale the 5,000 shares of Series C Preferred stock into approximately 526,000 shares of common stock at a conversion price of approximately $9.50 per share. All those shares have been sold pursuant to the S-3 Registration Statement filed by the company and declared effective in July 1993. The sale of the final block of shares occurred on Oct. 11, 1993. In addition, the NEI representative holding a seat on the board of directors of the company has voluntarily resigned that position in accordance with previous agreements between the parties.
 The company also announced today that it has concluded a settlement conference, as ordered by the District Court, before a magistrate judge supervising pretrial proceedings in the pending suit brought by James Hendry against the company's principal subsidiary.
 That suit asserted various substantial claims based on an alleged failure to pay commissions to Mr. Hendry in connection with sales arising out of a contract with the Air Force. A verdict in favor of Mr. Hendry for some $14.9 million following a trial in 1990 in the United States District Court for the Northern District of California was reversed by the Ninth Circuit Court of Appeals in 1992. In July 1993, the trial court determined that a number of the plaintiff's claims may not be tried, but ordered a new trial to be held on the plaintiff's claims of breach of oral contract, fraud and "quantum meruit" (i.e., reasonable compensation for services rendered), and referred certain pretrial issues to a magistrate judge.
 A magistrate judge recently conducted the settlement conference at which Exide Electronics made several unsuccessful offers to settle the case and received one offer from the plaintiff, which Exide Electronics viewed as unreasonable.
 Prior to the settlement conference, on Sept. 22, 1993, the trial court adopted the recommendations of a magistrate judge and entered a Scheduling Order setting a trial date of Nov. 2, 1993. A pretrial conference to establish guidelines for the trial is scheduled for Oct. 28, 1993.
 The company cannot predict the outcome of the new trial, and there can be no assurance as to the ultimate outcome of this matter.
 -0- 10/14/93
 /CONTACT: (Investor) Marty R. Kittrell, chief financial officer, of Exide Electronics Group, Inc., 919-872-3020/
 (XUPS)


CO: Exide Electronics Group, Inc.; Nippon Electric Industry, Inc. ST: North Carolina IN: CPR SU:

CM -- CH012 -- 2414 10/14/93 16:19 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
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