Summary: Interactive Flight Technologies, Inc.
(NASDAQ) settles Barington Capital
derivative lawsuits.
Company Contact:
Irwin L. Gross
Chairman
Interactive Flight Technologies, Inc.
(215) 972-8191
FOR IMMEDIATE RELEASE:
PHILADELPHIA, PENNSYLVANIA, October 22, 1998....INTERACTIVE FLIGHT
TECHNOLOGIES, INC. (NASDAQ:FLYT), announced today that it had settled the
derivative shareholders lawsuits instituted by Barington Capital Group. As part
of the settlement, Mercury Shareholder Associates has agreed to withdraw its
proposed proxy solicitation which opposed the Company's slate of directors,
Barington has agreed to support the Company's nominees for the Board of
Directors and the Company has agreed to authorize the repurchase of up to
2,000,000 shares of Class A Common Stock which will be conducted for IFT's
account by Barington. In addition, IFT has engaged Barington, on an exclusive
basis, to provide investment banking services for a period of 12 months and has
paid Barington a retainer of $250,000 and a consulting fee of $30,000 per month
payable upon signing of the agreement and will pay additional fees to Barington
in connection with the actions that are consummated. As part of the settlement,
IFT agreed to pay $150,000 to Mercury and Barington in partial reimbursement for
their solicitation and litigation expenses, and Ocean Castle Partners or its
designee (which may be IFT) will purchase for $1.50 per share 298,000 shares of
Class A Common Stock from affiliates of Mercury (which may include customer
accounts maintained by Barington).
Irwin L. Gross, the Chairman and CEO of IFT stated that he was pleased
to have settled the claims and looks forward to working with Barington to
enhance shareholder value.
James Mitarotonda, the Chairman and CEO of Barington stated that
Barington accomplished the goal of having IFT institute a buyback of shares. He
also indicated that he believed that current management, with the investment
banking services to be provided by Barington, had the potential to enhance
shareholder value and that Barington looked forward to working with management
to achieve its financial plan.
Except for historical matters contained herein, the matters discussed in this
press release are forward-looking statements and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect assumptions and involve risks and
uncertainties which may affect Interactive Flight Technologies, Inc.'s business
and prospects and cause actual results to differ materially from these
forward-looking statements.
