PRESS RELEASE
ERGOBILT UPDATE
Dallas, Tx. - August 19, 1998. ErgoBilt, Inc. (Nasdaq:ERGBE) announced today that as a result of the company's continuing inability to maintain Nasdaq's minimum listing requirements, its board has requested voluntary de-listing from Nasdaq effective August 19, 1998. This action was taken as a preemptory measure in view of the company's pending involuntary de-listing from Nasdaq.
The company stressed that this action will allow it to focus its resources on its operating entities. This action does not affect the activities of ErgoBilt and its operating entities BodyBilt, Inc., ErgoFon'iks Inc., and Cheetah Systems Inc., which will continue to operate in the normal course of business.
The company has engaged a qualified accounting consultant to help with historical financial data and other financial information. The company is eligible to re-apply for Nasdaq listing as soon as it's S.E.C. filings are brought current and minimum Nasdaq requirements for initial listing on Nasdaq are once again satisfied.
As part of its long term restructuring plans, ErgoBilt also announced today that its Board has been reconstituted. Mr. Jack Silver of New York, New York, and Dr. Scott D. Hakala of Dallas, Texas have agreed to serve on the Board, as well as on the company's audit committee. Both Mr. Silver and Dr. Hakala were and are holders of shares in the company acquired with their own funds. Directors Gerard Smith, Brown Glenn, and Drew Congleton have resigned from the Board. Director Dennis Orsi has been removed from the Board and subsequently resigned as Chief Financial Officer.
ErgoBilt, Inc. further announced today that it has engaged the investment banking firm of Morgan Keegan as a financial advisor to discuss strategic options for the company and its subsidiaries, and in particular, with respect to BodyBilt, Inc., its wholly owned subsidiary. Parties interested in investing in or acquiring BodyBilt are directed to contact Morgan Keegan at (901) 579-4834, Attention: Jeff Meskin. For interest in other of ErgoBilt's subsidiaries, contact the company at (972) 705-7233.
Note: Except for historical information contained herein, certain matters set forth in this release may be forward-looking statements. These statements are dependent on certain risks and uncertainties including, but not limited to, factors as the company's cash flow, a continued commercially viable ergonomic products, and its continued availability of debt and/or equity financing. Investors should also consider other risks and uncertainties set forth in documents filed by the company with the Securities and Exchange Commission.
For more information, contact the company at (972) 705-7233.
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