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Vaso Active Reaches Settlement Terms in Consolidated Class Action Lawsuit.

DANVERS, Mass. -- Vaso Active Pharmaceuticals, Inc. (Vaso Active) (VAPH.pk) of Danvers, Massachusetts, announced today that the Company entered into a Memorandum of Understanding Concerning Settlement Terms (MOU) to settle the pending consolidated securities class action lawsuit. Under the terms of the MOU, the lead plaintiffs and the settling defendants agree that the final stipulation will contain a disclaimer of liability consistent with the MOU. Subject to the terms and conditions set forth in the MOU, settling defendants will pay into escrow for the benefit of the class $1,100,000 in cash and $750,000 face amount of 2-year 5% subordinated callable notes convertible at $1.75 per share within 10 business days of preliminary approval of the settlement by the court. In consideration of this payment, the parties will fully and finally release and discharge all claims against each other. The settlement still needs court approval. The Company's insurance carrier has agreed to pay the $1,100,000 cash payment in exchange for a release of its liability under its insurance policy with the Company.

"This is a significant positive step forward for the Company. We look forward to putting this obstacle behind us, allowing us to now concentrate our efforts on building value for our shareholders," said Joseph Frattaroli, President of Vaso Active.

Forward-Looking Statements

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports of documents the Company files periodically with the SEC.
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Publication:Business Wire
Geographic Code:1USA
Date:Jun 2, 2005
Words:382
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