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Microcap & Penny Stocks : HGRM--Any Followers? -- Ignore unavailable to you. Want to Upgrade?

To: Ted M who wrote (3538)	12/19/2000 11:28:27 PM
From: Ted M	Read Replies (1) \| Respond to of 3576

News on ABH today: Tuesday December 19, 10:00 pm Eastern Time Press Release American Bank Note Holographics Announces Court Approval of Settlement in Class Action Litigation ELMSFORD, N.Y.--(BUSINESS WIRE)--Dec. 19, 2000--American Bank Note Holographics, Inc. (``ABNH'' or the ``Company'', OTC Bulletin Board:ABHH) announced that the United States District Court for the Southern District of New York has entered a judgment today giving final approval to the settlement of the consolidated securities class actions against the Company and all other defendants, including the Company's former parent, American Banknote Corporation (``ABN''), certain former officers and directors of the Company, certain current and former officers and directors of ABN and the Company's former independent auditors, Deloitte & Touche LLP, named in the actions entitled, In re American Bank Note Holographics, Inc., Securities Litigation and In re American Banknote Corporation Securities Litigation filed in the United States District Court for the Southern District of New York (the ``Court''). Approval of the settlement by the Bankruptcy Court for the Southern District of New York in which the Chapter 11 proceeding of ABN is pending had been given on November 3, 2000. The settlement of the class action litigation provides for a release of all claims that the plaintiffs and class members in each action have and may have against the Company and the other defendants. The plaintiffs and class members will receive an aggregate cash payment of $14,850,000 as a result of the settlement, $12,500,000 of which will be paid by the insurance carrier for the Company and ABN, and the remaining $2,350,000 will be paid by defendant Deloitte & Touche LLP. The Company will have no cash payment obligation with respect to the settlement, but will issue 1,460,000 shares of the Company's Common Stock, as well as warrants to purchase 863,647 shares of the Company's Common Stock at an exercise price of $6.00 per share. The warrants will be exercisable for the 30-month period commencing with today's Court approval. ABN will also issue certain of its securities as part of the settlement. Kenneth Traub, President and CEO of the Company, commented, We are very pleased to have this matter behind us. This litigation had been a significant distraction for ABNH, and fortunately we now have greater flexibility to focus on enhancing the Company's strong market position in the holographic industry. We would like to express our gratitude to our insurance carriers and our counsel for their assistance in helping us to resolve this complex litigation expeditiously. We would also like to express our appreciation to our customers, suppliers, employees and shareholders for their patience and support during this challenging period in the Company's history.`` American Bank Note Holographics is a world leader in the origination, production and marketing of mass-produced holograms. The Company's products are used primarily for security applications such as counterfeiting protection and authentication of transaction cards, identification cards, documents of value, and consumer and industrial products, as well as for packaging and promotional applications. This news release includes forward-looking statements that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurance that such statements will prove to be correct. Such statements are subject to certain factors that may cause results to differ materially from the forward-looking statements. Such factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, a copy of which may be obtained from the Company without charge. The Company undertakes no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results. -------------------------------------------------------------------------------- Contact: American Bank Note Holographics, Inc., Elmsford Kenneth H. Traub, President and Chief Executive Officer 914/593-0809