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HEALTH-CHEM CORPORATION ANNOUNCES SETTLEMENT OF LAWSUIT

 NEW YORK, Nov. 30 /PRNewswire/ -- Health-Chem Corporation (AMEX: HCH) announced today that a settlement was reached in the lawsuit captioned Dr. Agis F. Kydonieus v. Hercon Laboratories Corporation and Herculite Products, Inc. This previously reported action was commenced in March 1989 by the former president and holder of 50 shares of common stock (the "Hercon Stock") of the Company's Hercon Laboratories Corporation subsidiary ("Hercon") for certain termination pay purportedly due him and breach of an agreement allegedly entitling him to (a) receive $5,000,000 for the Hercon Stock; or (b) exchange the Hercon Stock for 250,000 shares of the Company's Common Stock; or (c) the reassignment of all patents he had assigned to Hercon. Hercon and Herculite Products, Inc. ("Herculite") had sought to compel Dr. Kydonieus to return the Hercon Stock without payment therefor.
 Under the terms of the settlement: (a) the lawsuit will be dismissed; and (b) Herculite has acquired 35 shares of the Hercon Stock from Dr. Kydonieus in exchange for $250,000. Giving effect to this acquisition, Herculite, a wholly owned subsidiary of the Company, owns 98.5% and Dr. Kydonieus 1.5% of the outstanding shares of common stock of Hercon.
 Health-Chem Corporation manufactures and distributes patented controlled release dispensers for the pharmaceutical and agricultural industries, along with industrial and health-care synthetic fabrics.
 -0- 11/30/93
 /CONTACT: Bruce M. Schloss, vice president of Health-Chem, 212-398-0700/
 (HCH)


CO: Health-Chem Corporation ST: New York IN: MTC SU:

TW-SH -- NY094 -- 8854 11/30/93 15:32 EST
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Publication:PR Newswire
Date:Nov 30, 1993
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