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WITH DESIGN IN MIND DEMANDS $2.1 MILLION IN RESTITUTION FROM FORMER OFFICIALS

 WITH DESIGN IN MIND DEMANDS $2.1 MILLION
 IN RESTITUTION FROM FORMER OFFICIALS
 CHATSWORTH, Calif., Aug. 24 /PRNewswire/ -- With Design In Mind International, Inc. (NASDAQ: WDIM) today announced the completion of an internal investigation into alleged misconduct of its former chairman of the board of directors and chief executive officer, Steve Zuloff, and its former president and chief financial officer, Barry Benjamin.
 Upon learning of allegations of misconduct in June 1992, the board of directors took immediate action to remove Zuloff and Benjamin as officers and shortly thereafter accepted their resignations as directors. In addition, the board appointed a special committee comprising the remaining board members to investigate the allegations. The special committee retained independent legal counsel and obtained the cooperation of the company's auditors in conducting the investigation.
 At the conclusion of the investigation, the company demanded restitution in the amount of approximately $2,100,000, representing the aggregate amount of money the company believes was misappropriated or improperly diverted for personal use, and also demanded reimbursement of approximately $150,000 of expense incurred in the investigation. The board reported that Zuloff and Benjamin have refused to make restitution.
 With Design In Mind has notified the Securities and Exchange Commission (SEC) of the alleged misconduct and the company's actions relating to the investigation. An investigation of the allegations by the SEC is pending.
 Reporting the completion of the investigation, Sheldon F. Morick, president and chief executive officer, said that With Design In Mind intends to institute legal proceedings seeking full restitution of all money believed to have been improperly diverted from the company. He added that the alleged misappropriation of funds will not affect the company's future earnings potential. "All funds believed to have been misappropriated were expended in the past," Morick said.
 Morick noted that at June 30, 1992, With Design In Mind had cash and cash equivalents of approximately $4.3 million, working capital of $5 million and a current ratio of 11-to-1. "The company is in excellent financial condition, and we are continuing to implement our corporate growth strategies," Morick said.
 The board of directors is reviewing the company's policies and procedures, and is initiating new controls to minimize the possibility of successful misappropriation of company funds in the future, Morick said.
 -0- 8/24/92
 /CONTACT: Sheldon F. Morick or Michael S. Manahan, 818-407-1286, both of With Design In Mind; or Thomas Wick, John Muir or William F. Coffin, 818-783-2400, all of Financial Relations Board for With Design In Mind/ CO: With Design In Mind ST: California IN: SU:


MA -- NY004 -- 2450 08/24/92 08:59 EDT
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Publication:PR Newswire
Date:Aug 24, 1992
Words:433
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