Exhibit 99.1
Wednesday July 12, 6:22 pm Eastern Time
Company Press Release
Signal Technology and LogiMetrics End Merger Talks
DANVERS, Mass. and BOHEMIA, N.Y.--(BUSINESS WIRE)--July 12, 2000--Signal
Technology Corporation ("Signal") (Nasdaq: STCO) and LogiMetrics, Inc.
("LogiMetrics") (OTCBB: LGMTA) announced today that they have terminated
discussions relative to Signal's proposed acquisition of LogiMetrics. Under the
provisions of a non-binding letter of intent announced March 14, 2000, Signal
proposed to acquire LogiMetrics through the merger of a wholly owned subsidiary
of Signal with and into LogiMetrics.
"LogiMetrics is a fine company, but we were unable to finalize our transaction
because we could not agree on an appropriate price," said Signal Chairman and
Chief Executive Officer George Lombard. "In light of recent successes of the
Signal Wireless Group, we now believe that we are better off pursuing in-house
development of the type of point-to-multipoint radio product line that we had
expected to acquire with LogiMetrics. In addition, Signal will continue to
explore other potential acquisitions that can further accelerate our expansion
into the fast-growing commercial wireless broadband communications
infrastructure market."
In connection with the letter of intent, Signal loaned approximately $2 million
to LogiMetrics for working capital and other purposes. Concurrent with the
letter of intent, certain existing investors in LogiMetrics loaned the company
approximately $1 million. According to its terms, Signal's loan, together with
accrued interest, is scheduled to be repaid next week.
Also in connection with the letter of intent, LogiMetrics granted Signal the
option to purchase its Bohemia, New York - based high-power amplifier business
for the purchase price of $2 million less the unpaid portion of any loans made
by Signal to Logimetrics.
Since the execution of the letter of intent, Signal has been managing and
operating the New York power amplifier business, has assumed certain current
liabilities of the business and has been making interest payments on
LogiMetrics' outstanding bank indebtedness. "Signal intends to exercise its
option to remove the New York business back to LogiMetrics," Lombard said.
Under the terms of their agreement, in the event that Signal returns the
LogiMetrics New York power amplifier business, Signal is entitled to
reimbursement of amounts expended by Signal in connection with the operation of
that business, including the interest payments it has made on LogiMetrics'
outstanding bank indebtedness.
About Signal Technology
Signal is a leader in developing state-of-the-art electronic components and
systems for wireless communications, defense and space applications. Through
its Signal Wireless Group (SWG), the company is addressing the exploding global
demand for Internet and data bandwidth by developing RF radio sub-systems for
broadband fixed wireless telecommunications applications worldwide. SWG also
develops and manufactures switching/combining components and subsystems for
PCS/cellular digital applications for sale to wireless base station
infrastructure providers. In its defense businesses, Signal develops and
manufactures RF, microwave, and power conversion products for communications
networks, electronic countermeasures, missiles, radar, intelligence and
guidance systems for sale to defense prime contractors worldwide. For further
information about Signal, please visit Signal's Web site at
http://www.sigtech.com.
About LogiMetrics
Through its wholly owned subsidiary, mmTech, Inc., LogiMetrics develops and
manufactures point-to-multipoint broadband, fixed wireless radios and
transceivers for sale to telecommunications system integrators, such as
Newbridge Networks Corporation. mmTech's products allow ISPs and wireless
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telecom companies to provide customers with first/last mile broadband access
for integrated data, Internet, voice and video transmission. mmTech, a pioneer
in this technology, has equipment deployed in commercial service and market
trials around the world. For further information about mmTech, please visit its
Web site at http://www.mm-tech.com.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements made in this news release that are not historical facts
contain forward-looking information that involve risks and uncertainties.
Important factors that may cause actual results to differ include, but are not
limited to, management's determination of future opportunities and risks, the
effect of economic conditions, the impact of competitive products and pricing,
product development, and other risks detailed from time to time in the
company's Securities and Exchange Commission filings. Signal Technology assumes
no obligation to update the information included in this news release.
Contact:
Signal Technology
George Lombard
978.774.2281
or
Sharon Merrill Associates, Inc.
Paul Sagan
617.542.5300
or
LogiMetrics, Inc.
Norman Phipps
631.784.4110
