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U.S. ALCOHOL TESTING OF AMERICA INC. ANNOUNCES A TENTATIVE STIPULATION OF SETTLEMENT WITH SHAREHOLDERS IN SECURITIES CLASS ACTION LITIGATION

 RANCH CUCAMONGA, Calif., Nov. 19 /PRNewswire/ -- U.S. Alcohol Testing of America Inc. ("USAT" or "Company") (AMEX: AAA) announced today that it executed a Stipulation of Settlement ("Settlement") with plaintiffs' counsel in the securities class action litigation entitled "Faye Eisenberg v. James C. Witham and U.S. Alcohol Testing of America Inc." Civil Action No. SACV-92-123 and "Harris Miller v. David Brooks, Stephen Walsh, Paul R. Greenwood, Guli R. Rajani and Walsh Greenwood & Co.," Civil Action No. CV-92-3015 (collectively, "Class").
 By the terms of the settlement, the company has agreed to pay $1,600,000 in cash to the class and $3,000,000 worth of USAT common stock, or a total consideration of $4,600,000 to completely settle both of the above class actions now pending against the company and all defendants named in those cases. The company intends to fund the $1,600,000 cash portion through the recently exercised warrants and options of the Brooks Parties, so that the settlement will not create any adverse effect on the company's operating capital or liquidity. If the settlement is approved by the court, this will end all class action litigation pending against the company.
 The settlement is subject to certain contingencies which must occur and court approval before it can become effective. Therefore, the company cannot make any assurances that a final agreement will occur or that the court will approve the conditions of the settlement. The hearing date for court approval of the class action settlement has not yet been scheduled with the court, but is anticipated to be scheduled some time in December 1993 or January 1994.
 U.S. Alcohol Testing manufactures screening and evidential breath testing equipment used by law enforcement agencies, correctional facilities, industries and other organizations.
 -0- 11/19/93
 /CONTACT: Gary S. Wolff, 909-466-8378/
 (AAA)


CO: U.S. Alcohol Testing of America Inc. ST: California IN: MTC SU:

NY-JB -- LA009 -- 6563 11/19/93 13:14 EST
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Publication:PR Newswire
Date:Nov 19, 1993
Words:325
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