Exhibit 99.01
DEL GLOBAL TECHNOLOGIES RECEIVES DEMAND LETTER
VALHALLA, NY - March 21, 2005 -- DEL GLOBAL TECHNOLOGIES CORP. (DGTC) ("Del
Global" or "the Company") today announced that on March 21, 2005 Del Global was
notified by the party with whom it signed a letter of intent for the sale of its
Medical Systems Group that the buyer was terminating negotiations under the
letter of intent. The letter of intent provides for a $1.0 million payment
payable in the event that no later than March 4, 2005 the buyer was ready,
willing and able to enter into a definitive purchase agreement based on the
terms of the letter of intent and containing reasonable and customary
representations, warranties, terms and conditions relating to the transaction,
and Del Global elected not to enter into such purchase agreement. The party with
whom Del Global signed the letter of intent has demanded immediate payment of
this $1.0 million. Although there can be no assurance that Del Global will not
have to pay the $1.0 million, Del Global believes that no such payment is
payable under the terms of the letter of intent. Del Global intends to
vigorously defend any attempt by the buyer to collect such a payment.
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; a settlement of the Department of Defense matter; that does not include
a debarment from doing business with the U.S. Government; market and operating
risks from foreign currency exchange exposures; 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) 686-3650
