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

To: Cosmo Daisey who wrote (851)	6/25/1998 12:24:00 AM
From: Ernest Nycz	Read Replies (1) \| Respond to of 900

Wednesday June 24, 9:59 pm Eastern Time Company Press Release SOURCE: ErgoBilt, Inc. ErgoBilt to Sell ErgoFoniks and Cheetah Divisions; Announces Restructuring and Resignation of Acting CEO DALLAS, June 24 /PRNewswire/ -- ErgoBilt, Inc. (Nasdaq: ERGB - news), today announced that consistent with its restructuring of operations, it has accepted a proposal from NewText Systems Incorporated to rchase certain assets of ErgoFoniks, Inc. and Cheetah Systems, Inc. The proposal is subject to final contract and due diligence. The proposal was approved at a meeting of ErgoBilt's board of directors and allows for an accelerated closing in early July. The value of the transaction is approximately $ 5.3 Million, comprised partially of cash, a note, and an assumption of certain ErgoFoniks accounts payables. The proposed transaction could result in a non-recurring charge from discontinued operations in excess of $3.0 Million. The purchasing company, NewText Systems Incorporated, is a privately held corporation formed by a group of existing ErgoFoniks management headed by Allen Greenly, former Vice President of Sales for ErgoFoniks and Vice President of Operations for Cheetah. ''The highly compatible products and services of these two ErgoBilt divisions remain very viable,'' said Mr. Greenly, President and CEO of NewText. ''As a new team, with vested knowledge of the products and experience in the target markets, we are ideally positioned to meet the challenges and welcome the opportunities that this purchase affords.'' Dennis Orsi, CFO of ErgoBilt said, ''ErgoBilt's board is pleased that a group of ErgoFoniks management has demonstrated their confidence in these divisions and their products. The decision to sell allows ErgoBilt to return to the original focus of it's IPO and concentrate on the core business of ergonomic office products thorough its subsidiary BodyBilt. We wish NewText every success and will continue to offer our strongest endorsement and support''. Until alternative facilities are identified, NewText will lease office space from ErgoBilt at their headquarters in Dallas, Texas. Separately, the company announced that ErgoBilt and BodyBilt will implement a restructuring plan for its remaining entities ErgoBilt and BodyBilt. The board today accepted the resignation of C. Charles Bahr who recently joined the company as acting chief executive officer. As part of the restructuring plan, ErgoBilt has formed an ''office of the president'' that will be comprised of the board of directors and will govern the day to day affairs of the company until the executive search committee recruits a suitable successor to Mr. Bahr. Additional restructuring plans are being planned for BodyBilt and will be announced in the near future. Ergobilt, with headquarters in Dallas, is a developer, manufacturer and marketer of customized, high-end ergonomic office products that re-engineer the workplace and home office by scientifically minimizing physical stress imposed on the human body. The company's common shares are traded on the Nasdaq National Market under the Symbol ERGB. Note: Except for historical information contained herein, some matters set forth in this news release may be forward-looking statements that are dependent on certain risks and uncertainties including, but not limited to, such factors as the company's cash flow, continued commercially viable ergonomic products, the continued availability of credit to the company, the company's ability to accelerate the closing period on the NewText transaction, and the company's ability to timely complete due diligence on the NewText transaction. Investors should also consider other risks and uncertainties set forth in documents filed by the company with the Securities and Exchange Commission. SOURCE: ErgoBilt, Inc.