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Microcap & Penny Stocks : Scientific Measurement Systems (SCMS) -- Ignore unavailable to you. Want to Upgrade?

To: Juli who wrote (5149)	1/12/2000 5:30:00 PM
From: Gerald Merna	Read Replies (2) \| Respond to of 5557

(PR NEWSWIRE) SMS Announces Significant Balance Sheet Improvement SMS Announces Significant Balance Sheet Improvement AUSTIN, Texas, Jan. 12 /PRNewswire/ -- SMS (OTC Bulletin Board: SCMS) announced today that it has completed a series of transactions that have resulted in a substantial improvement in the Company's Balance Sheet. SMS successfully negotiated certain debt relief provisions with various trade creditors in return for the issuance of a total of 100,000 shares of common stock; a release of claims on certain IP rights and equipment assets held by General Electric; and the payment of various sums of cash. Funding was provided by cash inflows from Accounts Receivable in the normal course of business and the proceeds from the sale of the Company's operating assets related to the scanning service business to 3D Imaging & Development, Inc. SMS retains the rights to certain key domestic scanning service business opportunities and the rights to all scanning services outside of North America. SMS will also receive a 15% royalty on certain domestic scanning service sales for a period of ten years. In the unaudited financial statements as of December 31, 1999, these initiatives show a reduction of $1,792,207 in the Company's Current -- and contingent -- Liability. Also in the unaudited financial statements as of December 31, 1999, there is an improvement in Shareholders Equity from a negative ($1,276,239) to a positive $313,659. All commercial bank lenders, formerly secured by substantially all of the Company's assets including equipment and accounts receivable, have been successfully paid off in full including all interest owed. SMS has also paid down or paid off its obligations to its largest trade creditors. "Among the largest creditors with whom the Company dealt was General Electric to which the Company owed a significant amount of money resulting from a joint research contract awarded initially in February 1996. With the formal and complete satisfaction of both the commercial lender(s) and GE obligations, SMS finds itself in a much improved position to proceed forward," said Howard Burris, President & CEO of SMS. "The Company has been in a difficult position for some time, and the elimination of this much debt can only be regarded as a highly favorable development for SMS." SMS is a publicly traded company traded on the OTC Bulletin Board under the symbol SCMS. The Company is a leader in the development of industrial radiography and computed tomography, which is becoming widely used in the auto, aircraft, tire and castings industries. SOURCE Scientific Measurement Systems, Inc. -0- 01/12/2000 /CONTACT: Howard Burris, President & CEO of Scientific Measurement Systems, Inc., 512-837-4712, or fax, 512-837-9082/ /Web site: sms-ct.com (SCMS) CO: Scientific Measurement Systems, Inc.; 3D Imaging & Development, Inc. ST: Texas IN: ARO AUT SU: * end of story *