EXHIBIT 99.01
DEL GLOBAL TECHNOLOGIES ANNOUNCES
TERMINATION OF ITS EXPLORATION OF STRATEGIC ALTERNATIVES
VALHALLA, N.Y. - MARCH 30, 2005 - DEL GLOBAL TECHNOLOGIES CORP. (DGTC) ("Del
Global" or the "Company") today announced that it has concluded the review of
its strategic alternatives and has determined that shareholders' interests will
be best served by continuing to operate as a stand-alone strategy. As previously
announced, the Company was unable to reach a definitive agreement with the party
with whom it had entered into a non-binding letter of intent for the sale of the
Medical Systems Group segment.
Since initiating the review of strategic alternatives, as previously announced,
the Company has completed the sale of its Del High Voltage division, reached a
global settlement of the Department of Defense (DOD) investigation of the
Company's subsidiary, RFI Corporation, and is working with the Defense Logistics
Agency, a component of the DOD, to avoid any future limitations on the ability
of the Company to do business with U.S. Government entities. In addition, the
Company has returned to profitability. In light of this, the Company has
determined that shareholders' interests will be best served by the Company
remaining independent.
"The Board believes that tightening focus to continue to achieve profitability
while operating on a stand-alone basis will ultimately generate superior
shareholder value over the other options available to the Company at this time,"
stated Suzanne M. Hopgood, Chair of Del Global's Board of Directors.
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
