Puroflow Announces Successful Completion to Last Lawsuit
23 March 1999
Puroflow Announces Successful Completion to Last LawsuitVAN NUYS, Calif., March 23 -- Puroflow Inc. (OTC Bulletin Board: PURO) is pleased to announce the successful completion of the last outstanding piece of litigation involving the Company. On the third day of February 1999, the Circuit Court of Baltimore County, in a ruling entitled "Memtec America Corporation vs Puroflow Incorporated," ruled that Memtec had misappropriated trade secrets relating to Puroflow products and operations. The Court awarded $557,390 in damages to Puroflow. Memtec has confirmed that it does not intend to appeal the ruling, nor does the Company intend to appeal, though dissatisfied with the extent of the recovery. This favorable outcome concludes all litigation activity. Mr. Michael Figoff, Puroflow President, said, "I am delighted to wrap up past disputes, which required substantial legal costs and considerable management time in aggressive legal pursuits by Puroflow. Not only has the Judge's decision validated our claims, but the Court made a modest award in favor of the Company." "We can now press forward with the primary objective of building the Company's business, without further distractions from lawsuits. Commencing in the first quarter of fiscal 2000, there will be no further litigation expense, which recently had been incurred at the rate of approximately $25,000.00 a month. An end to litigation should benefit the profits of Puroflow in future quarters," Figoff said. Puroflow Inc., with manufacturing facilities in Van Nuys, is a leading supplier worldwide of high-performance filters which are able to withstand severe environmental conditions, for the defense, space and commercial aircraft industries and for the automobile airbag industry. Statements made in this press release, other than concerning historical information should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on management's belief as well as assumptions made by and information currently available to, management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Puroflow's actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors including those identified in Puroflow's Annual Report on Form 10-KSB for the fiscal year ended January 31, 1999 and its quarterly reports on Form 10-Q and subsequent filings filed with the Securities and Exchange Commission.