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Previous: BOETTCHER VENTURE CAPITAL PARTNERS L P, 10-Q, 1997-05-01 |
Next: GENZYME CORP, S-4, 1997-05-01 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported ) April 25, 1997
--------------
CINCINNATI MICROWAVE, INC.
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 0-13136 31-0903863
- ---------------------------- ------------ --------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
One Microwave Plaza, Cincinnati, Ohio 45249-9502
- --------------------------------------------- ----------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (513) 489-5400
-----------------
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
<PAGE> 2
Form 8-K Cincinnati Microwave, Inc.
Item 2. Acquisition or Disposition of Assets
------------------------------------
and
Item 5. Other Events
-------------
The Company announced today that it signed an Asset Purchase Agreement with Xsys
New Media Technologies (Xsys) to sell SureLink II, a portion of its digital
spread spectrum cordless telephone technology, for $300,000. On Friday, April
25, 1997 the Company filed a motion with the United States Bankruptcy Court,
Southern District of Ohio, Western Division, for an order (i) granting authority
to sell the assets to Xsys pursuant to Section 363 of the Bankruptcy Code, (ii)
establishing auction procedures and (iii) setting a hearing date of May 1, 1997
on the sale of these assets.
The Company is in the process of selling its modem business and looking for
buyers for the rest of its phone business. These transactions, however, are not
likely to contribute more than minimum value to the creditors. These sales,
coupled with the closing of the sale of the Company's real estate, will complete
the sale of substantially all of the Company's assets.
At the present time, the Company is unable to complete its Annual Report on Form
10-K and its quarterly reports that will be due on Form 10-Q in a timely
fashion. In lieu of filing those reports with the Securities and Exchange
Commission, the Company will be filing copies of the Financial Reports that it
is required to file with the United States Bankruptcy Court for the Southern
District of Ohio, Western Division, each month under cover of Form 8-K within
ten days of filing the Financial Reports with the Bankruptcy Court. On April 21,
1997, the Company filed its Financial Reports with the Bankruptcy Court for its
operations during the period ended March, 1997. The Financial Reports consist of
the following: (i) Operating Statement, (ii) Balance Sheet, (iii) Summary of
Operations, (iv) Monthly Cash Statement, and (iv) Statement of Compensation.
<PAGE> 3
Form 8-K Cincinnati Microwave, Inc.
Item 7. Financial Statements and Exhibits
---------------------------------
(c) Exhibits.
99(i) - Financial reports, as amended, as filed with the
United States Bankruptcy Court for the Southern District of
Ohio, Western Division, for the Company's operations during
the period ended March 1997 (without exhibits to the Monthly
Cash Statement (Form 5)).
99(ii) - Agreement to provide omitted Schedules to Monthly
Cash Statement upon request.
99(iii) - Press release of Cincinnati Microwave, Inc. dated
April 28, 1997.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, Cincinnati
Microwave, Inc. has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
April 25, 1997
CINCINNATI MICROWAVE, INC.
By /s/ Kurt H. Stump
----------------------------------------
Kurt H. Stump
Vice President and Chief Financial Officer/
Treasurer/Secretary
<PAGE> 1
Exhibit 99(i)
FORM 2 (7/94)
AMENDED OPERATING STATEMENT
Debtor: IN RE: CINCINNATI MICROWAVE, INC. Case No: 97 - 10882
---------------------------------- ------------
<TABLE>
<CAPTION>
Month Ending: March 31, 1997
----------------
Total
Current Month Since Filing
<S> <C> <C>
Total Revenue / Sales $ 1,334,744 $ 2,648,740
Cost of Sale $ 853,783 $ 1,859,064
- ------- - ---------
Gross Profit $ 480,961 $ 789,676
Expenses:
- --------
Officer Compensation $ 95,500 $ 152,800
Employee Salaries $ 331,650 $ 528,461
Benefits & Pensions $ 0 $ 0
Payroll Taxes $ 0 $ 0
Other Taxes $ 0 $ 14,053
Rent & Lease Expense $ 14,653 $ 14,658
Interest Expense $ 29,104 $ 29,104
Insurance $ 0 $ 0
Auto & Truck Expenses $ 354 $ 530
Utilities $ 26,766 $ 28,547
Depreciation $ 127,873 $ 193,586
Travel & Entertainment $ 1,704 $ 2,109
Repairs & Maintenance $ (645) $ (449)
Advertising $ 86,660 $ 97,853
Supplies, Office Expense $ 9,344 $ 14,741
Other: Relocation & Other $ (24,653) $(24,653)
TOTAL EXPENSES: $ 698,310 $ 1,051,340
NET OPERATING PROFIT / (LOSS) $ (217,349) $ (261,664)
Add: Non-Business Income
Interest Income $ 0 $ 0
Other Income $ 0 $ 0
Less: Non-Business Expenses:
Professional Fees $ 0 $ 0
Other $ 40,886 $ 49,586
- ------ ------
TOTAL NON-BUSINESS PROFIT / (LOSS) $ (40,886) $ (49,586)
NET INCOME / (LOSS) $ (258,235) $ (311,250)
</TABLE>
<PAGE> 2
FORM 3 (7/94)
BALANCE SHEET
Debtor: CINCINNATI MICROWAVE, INC. Case No. 97 - 10882
---------------------------- ------------
<TABLE>
<CAPTION>
Month Ending: March 31, 1997
----------------
<S> <C> <C> <C>
ASSETS Current Month Prior Month At Filing
Cash: $ 1,877,974 $ 868,084 $ 724,343
Inventory: $ 4,440,349 $ 4,894,871 $ 5,643,874
Accts. Rec: $ 1,655,867 $ 1,844,514 $ 1,819,744
Insider Receivables: $ 0 $ 0 $ 0
Land & Buildings: $ 12,492,980 $ 12,492,980 $ 12,492,980
Furn., Fixtures & Equip: $ 25,376,771 $ 25,374,571 $ 25,373,681
Accumulated Depreciation: $ (29,441,524) $ (29,229,400) $ (29,118,554)
Other: $ 1,602,321 $ 1,738,694 $ 1,120,823
- --------- - --------- - ---------
TOTAL ASSETS: $ 18,004,738 $ 17,984,314 $ 18,056,891
LIABILITIES:
POST-PETITION LIABILITIES:
Accts. Payable: $ 171,276 $ 11,992 $ 0
Wages & Salaries: $ 78,340 $ 77,146 $ 0
Taxes Payable: $ 0 $ 0 $ 0
Other: $ 0 $ 0 $ 0
- - - -
TOTAL POST-PETITION LIAB. $ 249,616 $ 89,138 $ 0
Secured Liabilities:
Subject to Post-Petition $ 3,809,947 $ 3,807,200 $ 3,794,500
Coll. or Financing Order $ 0 $ 0 $ 0
All Other Secured Liab. $ 0 $ 0 $ 0
- - - - - -
TOTAL SECURED LIAB. $ 3,809,947 $ 3,807,200 $ 3,794,500
PRE-PETITION LIABILITIES:
Taxes & Other Pri. Liab. $ 1,508,377 $ 1,529,831 $ 1,539,168
Unsecured Liabilities: $ 10,513,042 $ 10,581,784 $ 10,630,261
Other: ACCRUALS & ESTIMATES $ 6,379,829 $ 6,174,291 $ 6,237,879
- --------- - --------- - ---------
TOTAL PRE-PETITION LIAB. $ 18,401,248 $ 18,285,906 $ 18,407,308
EQUITY:
Owners' Capital: $ 10,937,861 $ 10,937,861 $ 10,937,861
Retained Earnings-PrePet. $ (15,082,778) $ (15,082,778) $ (15,082,778)
Retained Earnings-PostPet. $ (311,156) $ (53,013) $ 0
- --------- - -------- - -
TOTAL EQUITY $ (4,456,073) $ (4,197,930) $ (4,144,917)
TOTAL LIAB. & EQUITY $ 18,004,738 $ 17,984,314 $ 18,056,891
</TABLE>
<PAGE> 3
FORM 4 (7/94)
SUMMARY OF OPERATIONS
Debtor: CIN. MICROWAVE Period Ended: March 31, 1997 Case No. 97-10882
Taxes Payable Schedule
<TABLE>
<CAPTION>
Beginning Accrued / Payment / Ending
Balance Withheld Deposit Balance
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income Taxes
Federal: $ (2,763.13) $ 65,351.69 $ (65,351.69) $ (2,763.13)
State: $ 0.00 $ 16,149.36 $ (16,149.26) $ 0.10
Local: $ (533.89) $ 0.00 $ (61.13) $ (595.02)
FICA Withheld: $ (1,448.89) $ 22,751.73 $ (25,118.39) $ (3,815.55)
Employers FICA: $ (1,448.89) $ 22,751.73 $ (25,118.39) $ (3,815.55)
Unemployment Tax:
Federal: $ (19,828.76) $ 736.91 $ (511.18) $ (19,603.03)
State: $ (2543.72) $ 1,532.18 $ (2,713.97) $ (3,725.51)
Sales, Use & Excise:
Sales Tax: $ (7,923.32) $ 6,178.82 $ (5701.97) $ (7,446.47)
Real Estate Tax: $ (53,149.81) $ 0.00 $ 0.00 $ (53,149.81)
Property Taxes: $ (459,444.52) $ 0.00 $ 0.00 $ (459,444.52)
Use Tax: $ (1,500.00) $ 0.00 $ 0.00 $ (1,500.00)
Other: Worker's, etc. $ (68,637.94) $ 6,499.32 $ (5612.35) $ (67,750.97)
TOTALS: $ (619,222.87) $ 141,951.74 $ (146,338.33) $ (623,609.46)
</TABLE>
<TABLE>
AGING OF ACCOUNTS RECEIVABLE
AND POST-PETITION ACCOUNTS PAYABLE
<CAPTION>
Age in Days 0-30 30-60 Over 60
<S> <C> <C> <C>
Post Petition
Accts. Payable $157,061 $ 13,938 $ 277
Accts. Rec $976,365 $198,026 $481,476
</TABLE>
FOR ALL POST-PETITION ACCOUNTS PAYABLE OVER 30 DAYS OLD, PLEASE ATTACH A SHEET
LISTING EACH SUCH ACCOUNT, TO WHOM THE ACCOUNT IS OWED, THE DATE THE ACCOUNT WAS
OPENED, AND THE REASON FOR NON-PAYMENT OF THE ACCOUNT.
Describe events or factors occuring during this reporting period materially
affecting operations and formulation of a Plan of Reorganization.
<PAGE> 4
FORM 5 (7/94)
MONTHLY CASH STATEMENT
<TABLE>
<CAPTION>
Debtor: CINCINNATI MICROWAVE, INC. Statement for the period:
Case No: 97 - 10882 From: Feb 28, 1997 To: Mar 31, 1997
------------------------------------ ------------------- ------------------
Cash Activity Analysis (Cash Basis Only):
General Payroll Tax Cash Coll.
Acct. Acct. Acct. Acct.
----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
A. Beginning Balance $ 868,084
$
B. Receipts, Attach $ 1,622,753
separate schedule:
---------------------
C. Balance Available $ 2,490,837
(A + B)
D. Less Disbursements $(612,863)
Attach separate
---------------------
schedule
E. ENDING BALANCE $ 0 $ 0 $ 0 $ 1,877,974
(C - D)
</TABLE>
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FORM EACH
ACCOUNT)
<TABLE>
General Account:
<S> <C>
1. Depository Name & Add. Fifth Third Bank Cincinnati Ohio
------------------------------------------------------------------
2. Account Number Cash collateral accts 728-51998, 999-41002, 733-55267, 727-19671
------------------------------------------------------------------
Payroll Account:
1. Depository Name & Add.
------------------------------------------------------------------
2. Account Number
------------------------------------------------------------------
Tax Account:
1. Depository Name & Add.
------------------------------------------------------------------
2, Account Number
------------------------------------------------------------------
</TABLE>
Other monies on hand (specify type and location) (i.e. CD's, petty cash, etc.)
APPROXIMATELY $950 IN PETTY CASH. INCLUDED IN BOOK CASH IS A RESERVE OF $500,000
MAINTAINED BY THE CREDIT CARD COMPANY TO OFFSET CLAIMS ETC.
Date: 4/21/97
-------
------------------------------
Debtor in Possession
<PAGE> 5
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C>
Name: ERIKA WILLIAMS Capacity: Principal
-------------- ---
X Officer
---
X Director
---
Insider
---
Detailed Description of Duties: Daily responsibilities of President and Chief Executive Officer.
--------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ----------------
CURRENT COMPENSATION PAID: Weekly or Monthly
$30,000
----------------- ------------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance $204
----------------- ------------------
Life Insurance
----------------- ------------------
Retirement
----------------- ------------------
Company Vehicle
----------------- ------------------
Entertainment
----------------- ------------------
Travel
----------------- ------------------
Other Benefits
----------------- ------------------
CURRENT TOTAL:
Weekly or Monthly
$30,204.00
----------------- ------------------
Date: 4/21/97
--------
/s/ (Illegible)
-------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 6
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C> <C>
Name: KURT H. STUMP Capacity: Principal
----------------------------------------- ------
X Officer
-----
X Director
-----
Insider
-----
Detailed Description of Duties: Daily work activities of Chief Financial Officer, Director, and Treasurer
--------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
CURRENT COMPENSATION PAID: Weekly or Monthly
$11,250
----------------- ------------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance $204
----------------- ------------------
Life Insurance
----------------- ------------------
Retirement
----------------- ------------------
Company Vehicle
----------------- ------------------
Entertainment
----------------- ------------------
Travel
----------------- ------------------
Other Benefits
----------------- ------------------
CURRENT TOTAL:
Weekly or Monthly
$11,454
----------------- ------------------
Date: 4/21/97 /s/ [Illegible]
-------- ---------------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 7
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C>
Name: GILBERT L. WACHSMAN Capacity: ____ Principal
------------------------------- Officer
----
X Director
----
Insider
----
Detailed Description of Duties: Member of Board of Directors
------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
CURRENT COMPENSATION PAID: Weekly or Monthly
Retainer $1,000
----------------- ----------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance
----------------- ----------------
Life Insurance
----------------- ----------------
Retirement
----------------- ----------------
Company Vehicle
----------------- ----------------
Entertainment
----------------- ----------------
Travel
----------------- ----------------
Other Benefits: Meeting fee $1,000
----------------- ----------------
CURRENT TOTAL:
Weekly or Monthly
$2,000
----------------- ------------------
Date: 4/21/97 /s/ [Illegible]
---------- -------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 8
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C> <C>
Name: R. GREGORY BLAIR Capacity: Principal
----------------------------------- -----
X Officer
-----
Director
-----
Insider
-----
Detailed Description of Duties: Daily work activities of Vice President - Production
-------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
CURRENT COMPENSATION PAID: Weekly or Monthly
$11,917
----------------- -------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance $204
----------------- -------------
Life Insurance
----------------- -------------
Retirement
----------------- -------------
Company Vehicle
----------------- -------------
Entertainment
----------------- -------------
Travel
----------------- -------------
Other Benefits
----------------- -------------
CURRENT TOTAL:
Weekly or Monthly
$12,121
----------------- -------------
Date: 4/21/97 /s/ [Illegible}
--------- ----------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 9
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C> <C>
Name: CARROLL J. HALVA Capacity: Principal
--------------------------------- -----
X Officer
-----
Director
-----
Insider
-----
Detailed Description of Duties: Daily work activities of Vice President - Manufacturing
--------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
CURRENT COMPENSATION PAID: Weekly or Monthly
$12,333
----------------- ------------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance $204
----------------- ------------------
Life Insurance
----------------- ------------------
Retirement
----------------- ------------------
Company Vehicle
----------------- ------------------
Entertainment
----------------- ------------------
Travel
----------------- ------------------
Other Benefits
----------------- ------------------
CURRENT TOTAL:
Weekly or Monthly
$12,537
----------------- ------------------
Date: 4/21/97 /s/ [Illegible]
------------- --------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 10
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C> <C>
Name: THOMAS H. PERSZYK Capacity: Principal
----------------------------- ----
X Officer
----
Director
----
Insider
----
Detailed Description of Duties: Daily work activities of Vice President - Engineering
--------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
CURRENT COMPENSATION PAID: Weekly or Monthly
$12,500
----------------- ------------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance $204
----------------- ------------------
Life Insurance
----------------- ------------------
Retirement
----------------- ------------------
Company Vehicle
----------------- ------------------
Entertainment
----------------- ------------------
Travel
----------------- ------------------
Other Benefits
----------------- ------------------
CURRENT TOTAL:
Weekly or Monthly
$12,704
----------------- ------------------
Date: 4/21//97 /s/ [Illegible
------------ -----------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 11
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C> <C>
Name: DANIEL MURPHY Capacity: Principal
------------------------------- -----
X Officer
-----
Director
-----
Insider
-----
Detailed Description of Duties: Daily work activities of Vice President - Marketing
-----------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
CURRENT COMPENSATION PAID: Weekly or Monthly
$10,000
----------------- ------------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance $204
----------------- ------------------
Life Insurance
----------------- ------------------
Retirement
----------------- ------------------
Company Vehicle
----------------- ------------------
Entertainment
----------------- ------------------
Travel
----------------- ------------------
Other Benefits
----------------- ------------------
CURRENT TOTAL:
Weekly or Monthly
$10,204
----------------- ------------------
Date: 4/21/97 /s/ [Illegible]
---------- --------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 12
FORM 6 (7/94)
MONTHLY STATEMENT OF COMPENSATION
The following information is to be provided for each shareholder, office,
director, manager, insider, or owner that is employed by the debtor in
possession. ATTACH ADDITIONAL PAGES IF NECESSARY.
<TABLE>
<S> <C> <C>
Name: JOSEPH MARSHALL Capacity: Principal
---------------------------- -----
X Officer
-----
Director
-----
Insider
-----
Detailed Description of Duties: Daily work activities of Vice President - Materials
----------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
CURRENT COMPENSATION PAID: Weekly or Monthly
$7,500
----------------- ------------------
CURRENT BENEFITS RECEIVED: Weekly or Monthly
Health Insurance $204
----------------- ------------------
Life Insurance
----------------- ------------------
Retirement
----------------- ------------------
Company Vehicle
----------------- ------------------
Entertainment
----------------- ------------------
Travel
----------------- ------------------
Other Benefits
----------------- ------------------
CURRENT TOTAL:
Weekly or Monthly
$7,704
----------------- ------------------
Date: 4/21/97 /s/ Illegible]
-------- ---------------------------------------------
Principal, Officer, Director, Insider
</TABLE>
<PAGE> 1
EXHIBIT 99(ii)
--------------
The Financial Reports, as amended, which are being filed as an exhibit
to the Form 8-K of Cincinnati Microwave, Inc., date of report April 25, 1997,
are being filed without the schedules to the Monthly Cash Statement (Form 5).
Set forth below is a list of the omitted Schedules to Form 5 which Cincinnati
Microwave, Inc. hereby agrees to furnish supplementally to the Securities and
Exchange Commission upon request: (i) Fifth-Third Bank statement regarding the
Company's General Account and (ii) the Supplement to Disbursements containing a
listing of the Company's wire transfers, system checks and manual checks.
CINCINNATI MICROWAVE, INC.
By: /s/ E. Williams
---------------------------
E. Williams
Chairman of the Board (Acting),
President and Chief Executive Officer
<PAGE> 1
EXHIBIT 99(iii)
CINCINNATI
MICROWAVE
News Release
FOR FURTHER INFORMATION:
- ------------------------
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Elaine Bacon Bill Schmidle, Analyst Inquiries
513-489-5400 312-640-6753
[email protected] Karl Plath, General Inquiries
312-640-6738
FOR IMMEDIATE RELEASE
CINCINNATI MICROWAVE SELLS PHONE TECHNOLOGY
CINCINNATI, APRIL 28, 1997--CINCINNATI MICROWAVE, INC. announced today that it
signed an Asset Purchase Agreement with Xsys New Media Technologies (Xsys) to
purchase SureLink II, a portion of its digital spread spectrum cordless
telephone technology, for $300,000. On Friday, April 25, 1997 the Company filed
a motion with the United States Bankruptcy Court, Southern District of Ohio,
Western Division, for an order (i) granting authority to sell the assets to Xsys
pursuant to Section 363 of the Bankruptcy Code, (ii) establishing auction
procedures and (iii) setting a hearing date of May 1, 1997 on the sale of these
assets.
The Company is in the process of selling its modem business and looking for
buyers for the rest of its phone business. These transactions, however, are not
likely to contribute more than minimum value to the creditors. These sales,
coupled with the closing of the sale of the Company's real estate, will complete
the sale of substantially all of the Company's assets.
ADDITIONAL INFORMATION ON THE COMPANY, ITS PRODUCTS AND MARKETS CAN BE OBTAINED
FROM THE COMPANY'S WORLDWIDE WEB SITE: HTTP://WWW.CNMW.COM/WELCOME.HTM.
INFORMATION ABOUT CINCINNATI MICROWAVE ALSO IS AVAILABLE, FREE OF
CHARGE VIA FAX, BY DIALING 1-800-PRO-INFO AND
USING TICKER SYMBOL CNMW.
-30-
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