Exhibit 99.02
DEL GLOBAL TECHNOLOGIES ANNOUNCES FINAL SETTLEMENT
OF THE PREVIOUSLY ANNOUNCED RFI CORPORATION
INVESTIGATION AND PROVIDES UPDATE ON PREVIOUSLY
ANNOUNCED STRATEGIC ALTERNATIVES
VALHALLA, N.Y. - Oct. 4, 2004 - DEL GLOBAL TECHNOLOGIES CORP. (DGTC) ("Del
Global") today announced that it entered into a settlement agreement on
September 30, 2004 with the U.S. Government regarding settlement of the civil
and criminal aspects of the previously announced U.S. Department of Defense
investigation of Del Global's subsidiary, RFI Corporation. In connection with
this settlement, Del Global paid fines and restitution to the U.S. Government of
$5.0 million and RFI will enter this week a criminal guilty plea to a single
count conspiracy charge pursuant to the settlement agreement. The settlement is
subject to court approval. There can be no assurance that the court will approve
the settlement. In addition, Del Global has engaged in negotiations with the
Defense Logistics Agency, its primary government customer, regarding Del
Global's present responsibility and its ability to continue to contract with the
U.S. Government. Del Global is hopeful that an administrative resolution of this
issue can be achieved that would allow Del Global to continue doing business
with the Government. No assurance can be given that Del Global and the Defense
Logistics Agency will be able to resolve the issue in this manner. In addition,
Del Global and the U.S. Government must execute a written compliance agreement.
No assurance can be given that the Company and the U.S. Government will enter
into any such agreement.
Walter F. Schneider, President and CEO of Del Global, commented, "We are
delighted to bring this matter to a close and, in doing so, remove another layer
of investor uncertainty."
In addition, Del Global today reported on the progress of the previously
announced strategic alternatives review. Del Global today announced that it has
sold its High Voltage Power business to Spellman High Voltage Electronics
Corporation for a purchase price of approximately $3.1 million, plus the
assumption of approximately $0.8 million of liabilities. This sale was completed
on October 1, 2004. Del Global also announced today that it has signed a
non-binding letter of intent with a financial buyer for the sale of Del Global's
RFI Corporation subsidiary and has signed a non-binding letter of intent with a
financial buyer for the sale of Del Global's Medical Systems Group. Del Global
intends to call a special meeting of stockholders to seek approval under New
York law for the sale of the Medical Systems Group in the event a definitive
agreement is entered into for such sale. There can be no assurance that these
non-binding letters of intent will result in the consummation of the sale of RFI
or the Medical Systems Group or that the strategic alternatives process
initiated by Del Global will lead to any other transactions.
Del Global may seek stockholder approval of a plan of liquidation, however,
the Board of Directors of Del Global has not yet approved any plan of
liquidation. Any proceeds that may be received by stockholders of Del Global as
a result of any plan of liquidation may be greater or less than the current
market price of the common stock of Del Global.
Del Global Technologies Corp. is primarily engaged in the design,
manufacture and marketing of cost-effective medical imaging and diagnostic
systems consisting of stationary and portable x-ray systems,
radiographic/fluoroscopic systems, dental imaging systems and proprietary
high-voltage power conversion subsystems for medical and other critical
industrial applications. Through its RFI subsidiary, Del Global manufactures
electronic filters, high voltage capacitors, pulse modulators, transformers and
reactors, and a variety of other products designed for industrial, medical,
military and other commercial applications.
Statements about future results made in this release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on current
expectations and the current economic environment. Del Global cautions that
these statements are not guarantees of future performance. These statements
involve a number of risks and uncertainties that are difficult to predict,
including, but not limited to, the ability of Del Global to implement its
business plan; retention of management; changing industry and competitive
conditions; obtaining anticipated operating efficiencies; securing necessary
capital facilities; favorable determinations in various legal and regulatory
matters; the ability of Del Global to avoid a debarment from doing business with
the U.S. Government; completing the sale of RFI and the Medical Systems Group;
and favorable general economic conditions. Actual results could differ
materially from those expressed or implied in the forward-looking statements.
Important assumptions and other important factors that could cause actual
results to differ materially from those in the forward-looking statements are
specified in the Company's filings with the Securities and Exchange Commission.
CONTACT:
Del Global Technologies Corp. INVESTOR RELATIONS:
Walter F. Schneider, President The Equity Group Inc.
& Chief Executive Officer Devin Sullivan (212) 836-9608
Mark Koch, Principal Accounting Officer Adam Prior (212) 836-9606
(914) 686-3600
