Intermagnetics Expects PowerCold Investment Alliance
to Help Gain Entry Into Promising Refrigeration Market
Promising Refrigeration Market
Sees Strong Possibilities for Patented InterCooler(TM) System
LATHAM, N.Y., Oct. 12 /PRNewswire/ -- Intermagnetics General Corporation
(Amex: IMG) today reported that its recent investment in PowerCold Corporation
(OTC Bulletin Board: PWCL) is now expected to facilitate marketing its
innovative InterCooler(TM) System for supermarket refrigeration equipment and
possibly other refrigerator systems for food freezing. Intermagnetics'
InterCooler can provide significantly more energy savings than traditional
subcooling equipment.
Intermagnetics on September 16, 1998, agreed to purchase 1.25 million
shares of PowerCold Series A preferred stock for $1 million, together with a
purchase option to acquire up to 50 percent of the fully diluted equity of the
PowerCold. The purchase option is exercisable at a per share price of the
lesser of $3 or market price through March 31, 1999. PowerCold reported
6.2 million shares outstanding as of June 30, 1998.
"PowerCold has strong ties with the supermarket refrigeration industry,
which makes it an ideal partner to help us penetrate a market that includes
35,000 supermarkets and more than 100,000 convenience stores in the U.S. and
Canada," said Carl H. Rosner, chairman and CEO of Intermagnetics. "Our
InterCool Energy Corporation (ICE) subsidiary is presently building the first
commercial InterCoolers, to be installed independently of the PowerCold
agreement. The anticipated energy-saving benefits we expect these systems to
demonstrate should spur significant interest from the world-wide supermarket
refrigeration industry, with which PowerCold is already involved."
Rosner added that the patented system can improve energy efficiency -- and
reduce costs -- in cooling systems by as much as 40 percent, about twice the
savings possible with traditional mechanical subcoolers. Subcoolers are used
to cool the system refrigerant prior to circulation in a primary refrigeration
unit to improve the overall operating efficiency of the refrigeration system.
"Additionally," Rosner added, "we expect the PowerCold alliance to pay
further dividends in helping us market InterCool's low temperature
refrigeration systems and FRIGC(R) FR-12(TM) refrigerant to replace ozone-
depleting Freon* in stationary refrigeration and air conditioning
applications."
As part of the agreement with PowerCold, restrictions were imposed on
certain PowerCold shareholders' ability to transfer or dispose of their stock
and Intermagnetics will be able to nominate individuals as directors of
PowerCold.
"Not only do we consider this agreement to have strong potential to
benefit ICE's marketing efforts, we also believe it is a sound investment in
its own right," Rosner said. "We view PowerCold as a growing company with
solid prospects."
PowerCold Corporation is a solution provider of energy-efficient products
for the multi-billion dollar refrigeration, air condition and power
industries. The company's focus is to pursue synergistic business alliances
for its technology with major utilities and related companies, and to provide
customers with products and systems that allow them to benefit from current
changes occurring in the natural gas and electrical utility marketplace.
PowerCold companies include: Technicold Services, Inc, a provider of
refrigeration engineering consulting services; RealCold Products, Inc., a
designer and packager of refrigeration and freezer systems; and Nauticon,
Inc., a manufacturer and marketer of evaporative heat exchange systems.
PowerCold recently signed an agreement to acquire 80 percent of Channel Ice
Technologies, a proprietary, patented multipurpose freezing system. PowerCold
also owns a 30 percent equity interest in Rotary Power International, Inc.,
which manufactures and markets rotary power engines, used primarily in
refrigeration systems.
Intermagnetics (Amex: IMG) is a leading developer and manufacturer of low-
temperature (LTS) and high-temperature (HTS) superconducting magnets, wire and
cable as well as associated low-temperature refrigeration equipment, and
radio-frequency (RF) coils, the combination of which is essential to
successful application of superconductivity, especially in equipment for
Magnetic Resonance Imaging (MRI). The Company is dedicated to the development
and commercialization of applied superconductivity and refrigeration systems.
The Company also supplies permanent magnet systems, materials separation
equipment and FRIGC(R) refrigerants as replacements for ozone-depleting
refrigerants.
SAFE HARBOR STATEMENT: This press release contains "forward-looking
statements" that involve various important assumptions, risks, uncertainties
and other factors. These include, without limitation, the assumptions, risks,
and uncertainties set forth in the Company's 1998 Form 10-K including the
Company's ability to win market acceptance for the InterCooler System, as well
as appropriate pricing and energy costs.
* Freon is a registered trademark of E.I. duPont deNemours & Co.
SOURCE Intermagnetics General Corporation
-0- 10/12/98
/NOTE TO EDITORS: For more information about Intermagnetics General
Corporation, free of charge via fax, dial 1-800-PRO-INFO and use ticker symbol
"IMG."/
/CONTACT: Carl H. Rosner, Chairman & CEO, or Cathy Yudzevich, Investor
Relations of Intermagnetics General Corporation, 518-782-1122; or Karl Plath,
General Inquiries, 312-640-6738, or Margaret Huebner, Analyst Inquiries,
312-640-6725, both of The Financial Relations Board/
/Web site: igc.com
(IMG PWCL)
CO: Intermagnetics General Corporation; PowerCold Corporation
ST: New York
IN: CPR
SU: CON
CS-AJ
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9512 10/12/98 11:43 EDT prnewswire.com
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