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

To: tonto who wrote (841)	6/15/1998 8:06:00 AM
From: tonto	Respond to of 900

It gets uglier... ErgoBilt, Inc. Announces Delay in Annual Report; Suit By Former Director DALLAS, June 15 /PRNewswire/ -- ErgoBilt, Inc. (Nasdaq: ERGB - news) announced today that the company's auditors would not be in a position to release the audit report for the fiscal year ended February 28, 1998, until completion of a special audit requested by ErgoBilt's Board of Directors dealing with certain of the Company's accounting practices. The special audit, being conducted by a third party accounting firm, is being undertaken partially in connection with the allegations made in a lawsuit filed by the former owners of Cheetah Systems, Inc., an entity acquired by the Company during the last fiscal year. The lawsuit followed ErgoBilt's notice to Cheetah that ErgoBilt was considering rescinding the original purchase agreement on the basis of fraudulent inducement by Cheetah. ErgoBilt does not expect to file its Annual Report on Form 10-K with the Securities and Exchange Commission until completion of the audit, which is currently underway. The Company's auditors also informed the Company that the audit report, if issued currently, would include a ''going concern'' qualification due to defaults of loan agreements. Separately, the Company announced that Mark McMillan has filed an action against the Company claiming that he was wrongfully removed as a director of Company and seeking an injunction. ErgoBilt, Inc., with headquarters in Dallas, is a developer and marketer of ergonomic products and technology that improve workplace productivity. The Company has two operating units -- BodyBilt, Inc. and ErgoFoniks, Inc. The Company's common shares are traded on the Nasdaq National Market System under the symbol ERGB. SOURCE: ErgoBilt, Inc.