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EXHIBIT 99.1
[LOGO ILLINOIS SUPERCONDUTOR CORPORATION]
FOR IMMEDIATE RELEASE CONTACT: MAUREEN MURNANE
PHONE: 847-391-9426
INTERNET: [email protected]
ILLINOIS SUPERCONDUCTOR ACQUIRES SPECTRAL SOLUTIONS
Mt. Prospect, IL (August 9, 2000) - Illinois Superconductor Corporation
(OTC Bulletin Board: ISCO), a leading supplier of superconducting
radio-frequency (RF) products for the wireless industry, announced today that it
has consummated its acquisition of Spectral Solutions, Inc. (SSI), pursuant to a
merger agreement executed and announced last May. Dr. Richard Herring, Chief
Executive Officer of Spectral Solutions before the merger, has been added to
ISC's Board of Directors.
Dr. George Calhoun, Chief Executive Officer of ISC, said: "In the three
months between the signing of the SSI merger agreement and yesterday's closing,
SSI and ISC personnel have been working closely together to transition to a
combined company. This experience has reinforced in our minds the rationale for
this transaction. In one transaction, we have:
. Acquired the industry's first fully commercialized HTS filter for
tower-mounted applications, and a strong patent position against
competing tower-mounted filters that may emerge.
. Acquired expertise in thin-film HTS wireless products, to
complement our pre-existing, patent-protected expertise in
thick-film technology.
. Added considerably to the depth of our technical, sales and
managerial teams.
Now, ISC is the only superconducting company in the world possessing both
thick-film and thin-film technology; is the first, and perhaps the only,
superconducting company to offer tower-mounted filters; has nearly fifty patents
and patent applications; and has an organization of 51 people."
Illinois Superconductor Corporation is a leader in the commercialization of high
temperature superconducting technology for the wireless telecommunications
industry. The Company develops, manufactures and markets radio frequency (RF)
products to enhance the quality and capacity of cellular telephone, personal
communications services and other wireless telecommunications services. More
information about Illinois Superconductor Corporation is available on the
Company's internet web site at http://www.ilsc.com.
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Statements contained in this news release that are not historical facts are
forward-looking statements. Such forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995 and reflect the Company's current expectations regarding the future results
of operations, performance and achievements of the Company. The Company has
tried, wherever possible, to identify these forward-looking statements by using
words such as "anticipates," "believes," "estimates," "expects," "plans,"
"intends," and similar expressions. These statements reflect the Company's
current beliefs and are based on information currently available to it.
Accordingly, these statements are subject to certain risks, uncertainties, and
contingencies, which could cause the Company's actual results, performance or
achievements for 2000 and beyond to differ materially from those expressed in,
or implied by, such statements. These important factors include, without
limitation, the ability to integrate SSI's and ISC's businesses; the Company's
history of net losses and the lack of assurance that the Company's earnings will
be sufficient to cover fixed charges in the future; the degree to which the
Company is leveraged and restrictions imposed on the Company under its existing
debt instruments which may adversely affect the Company's ability to finance its
future operations; uncertainty about the Company's ability to compete
effectively against better capitalized competitors and to withstand downturns in
its business or the economy generally; the adverse effects on liquidity of the
Company's common stock because of its de-listing from the NASDAQ National Market
in June 1999; continued downward pressure on the prices charged for the
Company's products due to the competition of rival manufacturers of front-end
systems for the wireless telecommunications market; the timing and receipt of
customer orders; the Company's ability to attract and retain key personnel; and
the effects of legal proceedings. A more complete description of these risks,
uncertainties and assumptions is included in the Company's filings with the
Securities and Exchange Commission, including those described under the heading
"Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 1999. The Company undertakes no obligation to update or
revise these forward-looking statements to reflect new events or uncertainties.
