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SYMBOL TECHNOLOGIES ANNOUNCES AGREEMENT TO SETTLE SHAREHOLDER DERIVATIVE AND CLASS ACTION LAWSUITS

 SYMBOL TECHNOLOGIES ANNOUNCES AGREEMENT
 TO SETTLE SHAREHOLDER DERIVATIVE AND CLASS ACTION LAWSUITS
 BOHEMIA, N.Y., March 3 /PRNewswire/ -- Symbol Technologies, Inc. (NYSE: SBL), the world leader in bar code-based data capture systems, today announced that it has reached agreement to settle shareholder derivative and class action originally filed in 1989 against it, its directors and certain of its officers. The shareholder class includes purchasers of Symbol common stock during the period from May 1, 1989, through Jan. 15, 1990, including those persons who purchased shares in the company's August 1989 public offering. Plaintiffs alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 in connection with alleged material misrepresentations and omissions made by the company to the investing public.
 A settlement fund of $11.5 million, which is comprised of $7.25 million of cash and six year warrants valued at $4.25 million will be created to settle the litigation. All of the cash portion of the settlement will be provided by an unaffiliated insurance company. The warrants will have an exercise price of $12 higher than the market price of the company's common stock at the time the settlement is finalized. Under the terms of the settlement agreement, the number of warrants to be issued will be determined at a later date by the agreement of two experts, one of which has been chosen by the company and one of which has been chosen by the plaintiffs, or by an independent third expert, or by the court if the two experts cannot reach agreement. Accordingly, while the number of warrants to be issued cannot be determined at this date and depends on the outcome of the valuation process provided for in the settlement agreement, based on management's current valuation analysis, the company estimates that approximately 400,000 warrants will be issued.
 The settlement will not materially affect the company's financial position. Symbol and its officers and directors continue to categorically deny all material allegations in the complaints and all liability. However, the company has agreed to the settlement because it does not require Symbol to make any cash payment, avoids the expense and inconvenience of further legal proceedings, puts to rest the claims asserted in the actions and permits Symbol to operate its business without further distraction or diversion of its executives regarding the litigations. The settlement of the actions is subject to approval by the Federal District Court.
 Symbol Technologies, Inc. is the world's largest supplier of bar code data capture systems with nearly two million scanners and terminals installed. The company manufactures and markets bar code scanners, hand held computers and radio frequency data communications products that are used as strategic building blocks in data collection systems for retail, manufacturing, distribution, transportation and many other industries.
 -0- 3/3/92
 /CONTACT: Michael G. Archambault of Symbol Technologies, 516-244-4632/
 (SBL) CO: Symbol Technologies, Inc. ST: New York IN: CPR SU:


KD -- NY075 -- 4623 03/03/92 16:20 EST
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Publication:PR Newswire
Date:Mar 3, 1992
Words:497
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