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UTILX RECEIVES $1.35 MILLION IN SETTLEMENT OF FLOWTEX DISPUTE

 KENT, Wash., Sept. 10 /PRNewswire/ -- UTILX Corp. (NASDAQ:UTLX), the leader in trenchless utility renovation, today reported that it recently concluded a settlement agreement with its former German licensee, FlowTex GmbH, resulting in the payment of $1.35 million to the company. UTILX had earlier announced that it was in the process of enforcing a $2.6 million arbitration award that it had obtained against FlowTex in January 1992.
 "We are pleased to have this long-standing dispute fully resolved," said Granville W. Holman, chairman and acting president and CEO. "Approximately $700,000 of the payment will be applied against a FlowTex receivable currently on our books. After payment of some additional attorney fees, we expect to realize approximately $500,000 of income before taxes from this settlement," Holman stated. "The remaining used drilling systems previously returned by FlowTex will be retained by us and will likely be refurbished for either resale in our international business or use in our domestic FlowMole drilling business," Holman concluded.
 The company indicated that as part of the settlement agreement, the parties granted each other certain patent-related rights in order to avoid possible future patent conflicts in Europe. In addition, the settlement included a general release by which the parties released each other from all claims.
 In an unrelated matter, the company also reported that it expected to incur significant costs in the second quarter in connection with the recently announced departure of John R. Potter, its former president and CEO. The amount of these separation costs will likely offset a significant portion of the income related to the FlowTex settlement.
 UTILX Corp. provides service for the renovation of underground utilities in the United States and Canada through a network of regional sales and service centers. It also conducts operations in Europe and Asia through its wholly owned subsidiary in the United Kingdom, and through business associates in Europe and Japan.
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 /CONTACT: David L. Lewis, vice president/finance and accounting and chief accounting officer or Michael A. Corn, secretary and general counsel, of UTILX Corp., 206-395-0200/
 (UTLX)


CO: UTILX Corp. ST: Washington IN: UTI SU:

RB -- SE001 -- 0610 09/10/93 07:50 EDT
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Publication:PR Newswire
Date:Sep 10, 1993
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