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GRAHAM-FIELD HEALTH PRODUCTS ANNOUNCES SUIT AGAINST TEMCO NATIONAL

 GRAHAM-FIELD HEALTH PRODUCTS ANNOUNCES SUIT AGAINST TEMCO NATIONAL
 HAUPPAUGE, N.Y., March 9 /PRNewswire/ -- Graham-Field Health Products, Inc. (AMEX: GFI), a manufacturer and supplier of healthcare products, today announced that it has filed a complaint against Temco National Corp. in the U.S. District Court for the Southern District Court of New York.
 The complaint arises out of Graham-Field's Oct. 1 1991, acquisition of the Temco Healthcare Division of Temco National Corp. and alleges, among other things, that in order to induce the acquisition by Graham- Field, Temco National Corp. misrepresented the financial position and results of operations of Temco Healthcare Division. The complaint alleges damages in excess of $5.5 million arising from an inflated purchase price based on misrepresentations. Graham-Field stated that $2 million of the originally estimated purchase price consisted of deferred payments, of which $1.5 million is being held in escrow and $500,000 was represented by a promissory note payable only in certain contingencies. Temco National Corp. has admitted that it is not entitled to $813,000 of the money held in escrow, but has asserted a claim for the remaining $687,000. Graham-Field said it is confident that the damages it seeks to recover will be partially offset by the remaining $1,187,000 of deferred purchase price and the balance will be vigorously pursued in court.
 Irwin Selinger, chairman of the board of Graham-Field, said he regretted the necessity of instituting suit against Temco. He said the suit became necessary when his good faith attempt to negotiate an adjustment of the purchase price was rejected. Selinger also said that as a result of prompt actions taken by Graham-Field after the acquisition of Temco Healthcare Division, its operations did not have a materially adverse affect of the overall operations of Graham-Field during the fourth quarter of 1991 and are not currently having a material adverse effect. Such actions included achieving manufacturing efficiencies and reducing selling, general and administrative expenses. Accordingly, he said, that although Graham-Field believes it was misled into over-paying for Temco Healthcare, its long-term overall profitability will not be impaired nor its strategic growth plans impeded. Graham-Field will continue to implement such plans while seeking to recover the overpayment, he said.
 Graham-Field manufactures, markets and distributes approximately 15,000 healthcare products for hospital, physician and home use to approximately 16,000 home healthcare, physician, hospital supply and pharmaceutical distributors, retailers and wholesalers.
 -0- 3/9/92
 /CONTACT: Donald J. Harnett, chief financial officer of Graham-Field Health Products, 516-582-5900/
 (GFI) CO: Graham-Field Health Products Inc.; Temco National Corp. ST: New York IN: HEA SU:


CK-TS -- NY051 -- 6401 03/09/92 12:12 EST
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Publication:PR Newswire
Date:Mar 9, 1992
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