UNIDYNE Announces Default On Debt Service
6 April 2000
UNIDYNE Announces Default On Debt Service, Negotiations Continuing On Voting TrustKENOSHA, Wis., April 6 UNIDYNE Corporation (OTC Bulletin Board: UDYN) today announced it has been unable to meet required debt service payments and received a notice of default on the $2.5 million mortgage note of its subsidiary, Kenosha Corporation. UNIDYNE today also announced that negotiations are continuing with the Company's 52% stockholder, Capital Idea, Inc., its former chairman, C. Eugene Hutcheson, and its former corporate secretary and treasurer, Charlotte E. Doremus, on the details of the voting trust agreement previously announced in its January 24, 2000 press release and filed on Form 8-K with the Securities and Exchange Commission on January 26, 2000. Kenosha, Wisc.-based UNIDYNE Corporation and its subsidiaries manufacture, sell, service and finance a variety of products, including vehicle emissions testing systems, specialized electric motors, and variable speed drives and controls. UNIDYNE also manufactures engine and chassis dynamometer testing systems for a variety of large industrial customers, primarily in the automotive and heavy equipment industries. The Company employs approximately 98 people at facilities in Kenosha, WI and Exton, PA. Statements made in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions ("Factors") that are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, the performance of the emissions testing industry, certain customer and affiliated companies, as well as other economic, competitive, governmental and technological factors involving the Company's operations, markets, services, products and prices, changes in and implementation of environmental and other governmental regulations, and other Factors disclosed in the Company's Annual Reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of this date, and the Company undertakes no obligation to update them, whether as a result of new information, future events, or otherwise.