TII INDUSTRIES
1385 AKRON STREET TEL: 516-789-5000
COPIAGUE, NEW YORK 11726 FAX: 516-789-5063
USA
FOR IMMEDIATE RELEASE:
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TII INDUSTRIES, INC. RAISES $3,150,000 GROSS PROCEEDS FROM
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PRIVATE PLACEMENT
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Copiague, New York, June 13, 2000 - TII Industries, Inc. (TIII-NASDAQ), a
leading producer of lightning and surge protection products and systems for the
telephone and cable-television industries, said today that it had raised gross
proceeds of $3,150,000 in a private placement.
Commenting on the transaction, Timothy J. Roach, President and Chief Executive
Officer stated, "Proceeds from this offering will be used primarily for
marketing, sales and product development to accelerate the roll-out of new
products into these high-growth communications markets, especially our patented,
high-performance broadband and wireless lightning and surge protectors."
The private placement consisted of the sale of 1,800,000 units at $1.75 per
unit. Each unit is composed of one share of common stock and a redeemable common
stock warrant to purchase one share of common stock within 4 years (commencing
after six months) at $2.79 per share.
The securities sold have not been registered under the Securities Act of 1933,
as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
that Act.
Mr. Roach stated, "With the accelerating convergence of communications
technologies and competition intensifying between the telephone and
cable-television industries to provide users with expanded services, including
faster internet access, we expect the demand for our high-performance protection
products to accelerate in the telephone and cable-television markets."
Mr. Roach concluded, "We therefore felt it important to increase our capital
base. With this infusion, coupled with anticipated cash flows from the business
and our current bank line which
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is largely unused, we feel our current capital needs are well met."
Founded in 1964, TII is a leading supplier of high-performance lightning and
surge protection products, network interface devices and station electronics for
the telecommunications industry. The Company has expanded into the rapidly
growing broadband communications markets with the development of
high-performance broadband network protectors. TII's patented, broadband
protectors out-perform all others in protecting the homeowner from the
devastating effects of lightning, while causing no high-speed signal or data
loss, critical to the proper performance of a broadband network.
For Additional Information, contact:
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Paul G. Sebetic, VP Finance & CFO - TII Industries, Inc. (631) 789-5000
Bob Frost, Investor Access Corporation (212) 679-0652
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Statements in this release that are not strictly historical are
"forward-looking" statements which should be considered as subject to the many
risks and uncertainties that exist in the Company's operations and business
environment. These factors include, but are not limited to, general economic and
business conditions, adverse weather and similar conditions, competition;
potential technological changes, potential changes in customer spending and
purchasing policies and practices; the Company's ability to market its existing,
recently developed and new products; dependence on third parties for its
products and product components; the Company's ability to attract and retain
technologically qualified personnel; the retention of the tax benefits provided
by its Puerto Rico operations; the Company's ability to fulfill its growth
strategies; the availability of financing on satisfactory terms to support the
Company's growth; and other factors from time to time discussed in TII's SEC
reports.
Visit our worldwide web site located at http://www.tii-industries.com
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