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EXHIBIT #1
NEWS RELEASE
[HEI Inc LOGO]
P. O. Box 5000
Victoria, Minnesota 55386 USA
952-443-2500
For Immediate Release
CONTACTS:
Anthony J. Fant, CEO
Donald R. Reynolds, President/COO
Steve E. Tondera, CFO
HEI, Inc. ANNOUNCES DISPOSITION OF COLORADO MEDtech SHARES
MINNEAPOLIS, October 26, 2000 -- HEI, Inc. (Nasdaq: HEII, www.heii.com) and
Anthony Fant, Chairman and Chief Executive Officer of HEI, today announced that
they have rescinded their agreement of September 10, 2000 by which Mr. Fant sold
to HEI 1,214,300 shares of common stock of Colorado MEDtech, Inc., ("CMED") in
exchange for 235,000 shares of common stock of HEI and the assumption by HEI of
$3,072,650.26 of indebtedness. As a result of this recision, there will be no
accounting effect to HEI. However, HEI will incur approximately $150,000 in
non-cash charges resulting from its efforts to acquire CMED.
"HEI is not in the business of holding significant stakes in other public
companies and since HEI no longer intends to commence an exchange offer for CMED
we believe this decision is in the best interest of HEI shareholders," said Don
Reynolds, Chief Operating Officer of HEI, Inc. "Although I believe the effort to
acquire Colorado MEDtech was worthwhile and appropriate for HEI, the
complications of a hostile exchange offer at a time when the market does not
recognize the true value of HEI makes unwinding this transaction the right thing
to do," he added.
"I am personally committed to seeking opportunities which will maximize the
value of my investment," Anthony Fant stated. "I intend to closely monitor
future developments regarding Colorado MEDtech and, in this regard, will
evaluate and may consider alternative courses of future action, including the
commencement of a proxy solicitation for a special shareholders meeting at which
I would seek to replace the current Colorado MEDtech board. Shareholder's
interests must come before the personal interests of a board and I'm eager to
see that day for Colorado MEDtech," Mr. Fant added.
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HEI, Inc., and Cross Technology, Inc., a wholly owned subsidiary of HEI, Inc.,
specialize in the custom design and manufacture of high performance,
ultraminiature microelectronic devices and high-technology products
incorporating those devices. HEI and Cross contribute to their customers'
competitiveness in the hearing, medical, communications, wireless smart cards,
other RF applications, and industrial markets through innovative design
solutions and by the application of state-of-the art materials, processes and
manufacturing capabilities.
Headquarters and Microelectronics Division PO Box 5000, 1495 Steiger
Lake Lane, Victoria, MN 55386
Mexico Division, Customer Service Center 777 East MacArthur Circle,
Tucson, AZ 85714
High Density Interconnect Division 610 South Rockford Drive,
Tempe, AZ 85281
Cross Technology, Inc. 1546 Lake Drive West,
Chanhassen, MN 55317
FORWARD LOOKING INFORMATION
INFORMATION IN THIS NEWS RELEASE, WHICH IS NOT HISTORICAL, INCLUDES
FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. STATEMENTS CONTAINED IN THIS
PRESS RELEASE ARE FORWARD LOOKING STATEMENTS. ALL OF SUCH FORWARD-LOOKING
STATEMENTS INVOLVE RISKS AND UNCERTAINTIES INCLUDING, WITHOUT LIMITATION,
ADVERSE BUSINESS OR MARKET CONDITIONS, THE ABILITY OF HEI TO SECURE AND SATISFY
CUSTOMERS, THE AVAILABILITY AND COST OF MATERIALS FROM HEI'S SUPPLIERS, ADVERSE
COMPETITIVE DEVELOPMENTS, CHANGE IN OR CANCELLATION OF CUSTOMER REQUIREMENTS,
AND OTHER RISKS DETAILED FROM TIME TO TIME IN HEI'S SEC FILINGS.
