Synthonics Technologies, Inc., Files Voluntary Chapter 11 Petition
to Implement Financial Restructuring Plan
Westlake Village, CA, October. 27, 2000 - Synthonics Technologies, Inc.
("Synthonics", OTCBB: SNNT) today announced that it has filed a voluntary
petition for reorganization in the U.S. Bankruptcy Court for the Central
District of California on October 23, 2000. The filing will allow the Company to
continue business operations while it formulates and obtains necessary approvals
of its financial restructuring plan.
The filing was necessitated by a number of factors and disputes that
culminated in excessive litigation proceedings. As a result of today's petition,
Synthonics will be able to avail itself of the orderly processes of the court to
complete the reorganization and move forward with its business operations.
"We would have preferred to continue operations without having to seek the
aid of the court, but the factors and disputes, followed by excessive litigation
prevented that approach," said Charles Palm, Acting Chairman and CEO of
Synthonics. "The voluntary Chapter 11 filing will allow the Company to get on
with business and address the issues in dispute in a more orderly fashion."
"We expect to continue doing business with our customers and licensees
under normal business terms," said Dr. Palm. "I believe the market for
interactive 3D graphics for e-commerce applications is just now beginning to
develop and I further believe that Synthonics is well positioned to capitalize
on future growth, especially in areas related e-commerce and mobile wireless
Internet applications."
CONTACT: Dr. Charles Palm, Synthonics Technologies, Inc., 818-707-6000.
Forward-Looking Statements
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Act of 1995. Investors
are cautioned that such forward-looking statements involve risks and
uncertainties including, but not limited to, dependence on the PC and wireless
technology industries. Investors are encouraged to examine risks associated with
investment in the Company's securities as detailed from time to time in the
company's periodic reports filed with the Securities and Exchange Commission.
