Company Press Release
Araldica Announces Agreement in Principal to Settle
Litigation
NEW ROCHELLE, N.Y.--(BUSINESS WIRE)--Aug. 4, 1998-- Araldica Wineries, Ltd. (OTC
BB:AWLT - news) announced today that the attorneys for the company, and the attorneys for Jon
L. Swan, the owner of Danielle Cheese Distributors, Inc., of Goshen, N.Y., have reached an
agreement in principal to settle the lawsuit filed in April of 1998 by Araldica against Mr. Swan,
claiming a breach of contract by Mr. Swan of the 15 January 1998 agreement between the parties,
which called for the acquisition of Danielle by Araldica.
Terms of the settlement specify a purchase price of $2,200,000: $700,000 in cash, and the
assumption of $1,500,000 of the corporate debt of Danielle (Araldica shares are no longer
involved), which represents a $400,000 increase above the originally agreed price of $1,800,000.
Danielle is a privately held 20 year old distributor of cheeses (its own brands and national brands) in
southern and central New York State, with current annual sales approximating $6,500,000 and
recent reported annual earnings approximating $250,000.
Upon the successful completion of the acquisition of Danielle by Araldica, which is now expected to
close in September of 1998, Araldica plans to relocate its corporate offices, from Westchester
County, to the Danielle facility in Goshen (Orange County), N.Y.
Araldica Wineries, Ltd. is a public company engaged, since 1993, in the nationwide marketing of
premium Italian wines, olive oils and specialty foods.
Contact:
Araldica Wineries, Ltd.
Louis DeSantis, 914/636-0500
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