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 MANHASSET, N.Y., Nov. 8 /PRNewswire/ -- In the three short weeks since John Sculley left Apple Computer, Inc. to come to Spectrum Information Technologies, Inc. ("Spectrum"), Manhasset, N.Y., (NASDAQ: SPCL), Mr. Sculley has quickly taken full control of Spectrum as evidenced by recent accomplishments.
 U.S. Robotics and Spectrum Information Technologies announce license agreement
 Following only weeks on the heel of a licensing agreement with Rockwell International, Spectrum is pleased to announce a licensing agreement with U.S. Robotics. Under the agreement, U.S. Robotics will adopt Spectrum's technology in selected portable, desktop and rack modems. Data transmission features in the modems will be activated by proprietary activating devices to be marketed by both U.S. Robotics and Spectrum.
 "Wireless data transmission is a key to the growth and success of the mobile office. Our expertise in modem technology, combined with Spectrum's leadership in cellular data communications, will enable us to continue to provide our customers with the latest innovations in high speed data transmissions," said Michael Seedman, Vice President/General manager of Personal Communications Products Group for U.S. Robotics.
 "We look at this agreement as another important event toward creating a large market for wireless data transmission over cellular," said Peter Caserta, Spectrum Vice Chairman and President.
 Class Action suit is settled
 Spectrum and the plaintiffs have signed a memorandum of understanding setting forth an agreement in principal to settle the class action lawsuit that was filed against the company and certain of its officers last May. The agreement is subject to certain confirmatory discovery by plaintiffs, execution of a formal settlement agreement and court approval. The suit purported to state claims under the securities laws arising out of the drop in the price of Spectrum's stock that occurred shortly after the announcement of the patent license agreement between Spectrum and AT&T.
 Spectrum continues to assert that neither the company nor any of its officers acted in any way improperly or engaged in any wrong doing whatsoever. Nonetheless, the company has decided to settle the case to end the disruption of basic operations and to avoid the nuisance and costs of protracted litigation. The settlement involves a cash payment of $1.5 million, substantially all of which is covered by insurance, and the issuance of 750,000 warrants to purchase Spectrum common stock at prices at or above the market price for such common stock.
 Three executives resign
 Spectrum founder and former chairman, Dana Verrill and former VP Cellular Marketing, John Rule, have resigned. Mr. Verrill has also resigned from Spectrum Information Technologies' Board of Directors. Katherine Bachand, formerly in charge of investor relations, has also resigned.
 "Each of these departures have been on very amicable terms, and we want to publicly thank Dana Verrill and his team for their valuable entrepreneurial contributions to Spectrum over the years. We wish each of them the best of luck in the future," said Mr. Caserta.
 New VP and General Counsel appointed
 Christopher P. Franco, formerly an attorney with Kelley Drye & Warren, has joined Spectrum as Vice President and General Counsel.
 "Chris' experience with SEC and related corporate legal activities will be important for us as we undertake what we expect will be an expansionary phase. We are delighted to have Chris on our management team," said John Sculley, Spectrum Chairman and CEO.
 Data One operations will be scaled back to reduce losses
 Data One, a subsidiary of Spectrum information Technologies, is a value-added reseller of mobile systems hardware and related systems integration.
 "Our strategy now is to move out of direct hardware sales to end- users and to refocus our communications services investment towards contract engineering and consulting services. Reducing operating losses in this business will give us increased flexibility to move forward with other endeavors," said Mr. Sculley.
 Contract engineering and consulting service firm will be acquired
 Yield TechniGlobal, a Staten Island based contract engineering and consulting services company employing 200 engineers and technicians with most of its revenue in mobile cellular communications, has signed a letter of intent to be acquired by Spectrum Information Technologies. After the acquisition, Yield will be wholly owned by Spectrum. Yield is a privately held, high growth, profitable service business with a revenue runrate of approximately $12 million. James L. Paterek, Yield CEO, will continue to lead Yield following the acquisition.
 "This is a terrific new business opportunity for us with a history of high growth, attractive margins and a dependable earnings stream. We are delighted to welcome Jim Paterek's team to Spectrum," said Mr. Sculley.
 Sculley's goal for Spectrum
 Mr. Sculley further stated, "Our plan is to turn Spectrum into a major growth company in the nexus of the convergence of wireless telecommunications and interactive information services. I believe there will be many opportunities from which to expand both through internal growth and acquisition of other potentially high growth companies. Timing in life is everything, and Spectrum will be our beachhead for expansion and it gives us a seat at the table as the ground rules for success in the telecommunications world are being totally reinvented."
 In Spectrum's effort to facilitate this convergence, Spectrum has set the following goals:
 1. Build confidence that going forward, Spectrum will become a world
 class company.
 2. Continue its efforts to turn its valuable patent portfolio into a
 broadly supported technology platform which will drive usage of
 wireless data transmission.
 3. Through acquisition, create a new high growth, high profit
 contract engineering services business focused on the mobile
 telecommunications sector. The company plans to use the profits
 from "contract engineering services" to fund future R&D and
 marketing expenses associated with building a high growth
 wireless data transmission business. Contract engineering
 services is a technical service industry in which Peter Caserta,
 Spectrum President and COO, and many current management
 team have considerable past management experience.
 4. Within the context of its plan framework, opportunistically look
 for other acquisitions, investments, partners and alliances which
 will help turn it into a major player as a communications
 services and enabling technology company in the new information
 Spectrum Information Technologies, Inc., a pioneer in cellular data communications, developed the first commercially successful cellular modem, and holds a portfolio of basic patents in the field of cellular modem technology. Spectrum currently licenses its patented technology to market leaders in the rapidly expanding cellular data market, such as Rockwell International, AT&T (including McCaw Cellular Communications, NCR, EO, AT&T Paradyne, AT&T Microelectronics and AT&T Consumer Products), U.S. Robotics, Megahertz and Apex Data. Spectrum Information Technologies, Inc. is headquartered in Manhasset, N.Y., with facilities nationwide.
 -0- 11/8/93
 /CONTACT: Dae H. Chang, Public Relations, 516-627-8992, ext. 136 or Werner Pleus, Investor Relations, 516-627-8992, ext. 112, both of Spectrum/

CO: Spectrum Information Technologies, Inc. ST: New York IN: CPR SU:

LG-TA -- NY046 -- 1761 11/08/93 12:11 EST
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Publication:PR Newswire
Date:Nov 8, 1993

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