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Biotech / Medical : Ergobilt (ERGB) - Ergonomic Chairs -- Ignore unavailable to you. Want to Upgrade?

To: Cosmo Daisey who wrote (810)	5/6/1998 12:52:00 PM
From: Dr. Seuss	Read Replies (1) \| Respond to of 900

Dr. Cos, Did you see this? It can get worse. I sold my position on this news. Note the line, "Mr. McMillan anticipates the Company will soon release an earnings report that is significantly below market projections. Mr. McMillan believes the shortfall is primarily a result of ineffective management and lack of a cohesive strategic plan for the subsidiaries." I knew it had to be someones fault! dr.seuss.com DALLAS, May 6 /PRNewswire/ -- Gerald McMillan, founder, director, and largest shareholder (34% beneficial owner) of ErgoBilt, Inc., (NASDAQ:ERGB) announces his intention to recommend the replacement of ErgoBilt's President and Chief Executive Officer Gerard Smith. Mr. McMillan believes that ErgoBilt's current CEO has not adequately maximized shareholder value, and intends to recommend engaging a management consulting firm with whom Mr. McMillan is currently holding discussions. This action is necessary as the current board of directors has failed to implement the management review it had previously approved, despite the insistence of certain directors. Mr. McMillan stated, "It is my belief, based on an independent report commissioned by ErgoBilt, that the current stock price does not adequately reflect the value of ErgoBilt's subsidiaries." Mr. McMillan is in discussions with two investment banking firms to assist in maximizing shareholder value through the divestiture of one or more subsidiaries or by accessing capital markets. It should be noted that on May 1, 1998, during a special directors meeting, Mr. McMillan and another director brought certain concerns to the board of directors, whereby the board responded by purportedly removing Mr. McMillan as Chairman, and by purportedly removing the director from the board. It is Mr. McMillan's belief that the actions taken by the board were without authority and he intends to take immediate and decisive steps to remedy the situation. Mr. McMillan anticipates the Company will soon release an earnings report that is significantly below market projections. Mr. McMillan believes the shortfall is primarily a result of ineffective management and lack of a cohesive strategic plan for the subsidiaries. Mr. McMillan is prepared to take the necessary steps and the appropriate actions to maximize shareholder value, which may include reconstituting the board of directors. Mr. McMillan concluded: "I believe ErgoBilt will have the greatest opportunity to realize its full potential from this course of action."