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News Release
-- Settlement to eliminate $305,000 notes payable --
Northridge, CA, December 16, 1997 -- Soligen Technologies, Inc. (AMEX: SGT.EC) today announced that the Company has reached a settlement in its suit with A-RPM Corporation. In June of 1994, Altop, Inc. a wholly-owned subsidiary of Soligen acquired the assets of A-RPM Corporation, an aluminum foundry and machine shop from Ken Lowery. "In addition to the positive impact on our balance sheet and income statement, the business decision to put this issue behind us allows management to devote our precious time in more productive endeavors," explained Yehoram Uziel, Chairman, President, and CEO of Soligen.
Under the terms of the settlement, Soligen will pay Ken Lowery, the owner of A-RPM, $20,000 on January 1, 1998 and $8,500 per month from February 1998 to October 1998. In November 1998, a final payment of $3,500 will be paid, for a total of $100,000. On January 1, 1998 the notes payable to Mr. Lowery will be canceled, the form UCC 1 that secured these notes will be lifted, and all claims for both sides will be canceled.
Of the $420,000 purchase price of the acquisition, there was an $100,000 initial payment. Pending resolution of this dispute, the Soligen provided for a $305,000 note payable on its consolidated financial statements. As a result of the settlement, the liability will be reduced by approximately $200,000 in the quarter ending December 31, 1997 and added to shareholder's value.
Soligen's DSPC technology is a proprietary fabrication process for metal parts that produces ceramic molds for metal casting directly from a CAD file. By using the DSPC technology, Soligen is able to produce a first article metal part bypassing the traditional need for tooling. Additionally, Parts Now produces production tooling for larger runs of metal castings from the same CAD file as the approved part. By combining three key production elements: DSPC technology, conventional casting methods and Computerized Numerical Control (CNC) machine practices, the Company has created the first "one-stop-shop" for functional metal parts that are made directly from a CAD file and that are ready for assembly. As a result, Parts Now has become a single source for out-sourcing of metal parts.
DSPC® and Parts Now® are registered trademarks of Soligen.
Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, time development and release of new products by strategic suppliers and customers, the effort of the Company's accounting policies and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.
Contact: | Yehoram Uziel, Soligen Technologies, Inc. | (818) 718-1221 |
Donna Shattuck | (818) 718-1221 |