EXHIBIT 99.1 For Immediate Release SL INDUSTRIES, INC. ANNOUNCES RECENT DEVELOPMENTS MT. LAUREL, NEW JERSEY, JULY 25, 2002 . . . SL INDUSTRIES, INC. (NYSE AND PHLX:SL) today announced that SL Industries, Inc. (the "Company") received notification from Credit Suisse First Boston ("CSFB") that CSFB had terminated its engagement as financial advisor to the Company. The termination was primarily the result of CSFB's internal reorganization and does not relate to the Company. Warren Lichtenstein, Chairman and Chief Executive Officer of the Company stated, "We regret that CSFB is unable to complete its assignment; however, we do not anticipate that this development will cause a material delay in the process of exploring the possible sale of the Company. The Company has contacted several other financial advisors which have expressed a strong interest in representing the Company and negotiations are in process." Lichtenstein continued, "I would also like to take this opportunity to discuss two recent legal developments. First, in connection with the ongoing litigation between Eaton Aerospace and the Company's subsidiary, SL Montevideo Technology, Inc. ("SL-MTI"), last week we received notice that the judge in the case had issued several rulings. The lawsuit was filed by Eaton Aerospace alleging breach of contract and warranty in the defective design and manufacture of a high precision motor. The complaint seeks compensatory damages of approximately $3,900,000. Both parties filed, briefed and argued cross-motions for summary judgment. On July 18, 2002, Eaton's motion for partial summary judgment was granted to the limited extent that the court found that SL-MTI sold motors to Eaton Aerospace with an express warranty and an implied warranty of merchantability and the motion was denied in all other respects, the court indicating that the nature and extent of those warranties would have to be decided by the jury at trial. Trial is currently schedule for August 2002. The Company continues to believe that it has strong defenses to these claims and intends to defend them vigorously." "The second development occurred on June 12, 2002, when the Company and its subsidiary, SL Surface Technologies, Inc. ("Surf Tech") were served with notice of a class action complaint filed in Superior Court of New Jersey for Camden County. The Company and Surf Tech are currently two of approximately thirty-nine defendants in this action. The complaint alleges that plaintiffs suffered personal injuries as a result of consuming contaminated ground water from the Puchack Wellfield caused by defendants disposal of hazardous substances at various industrial sites in the area. Surf Tech once operated a facility in the area. This action arises from the same factual circumstances as an administrative action for environmental remediation of the Puchack Wellfield,which involves Surf Tech and approximately six hundred other defendants. As with the administrative action, the Company believes it has significant defenses against the class action plaintiffs' claims and intends to pursue them vigorously. Technical data generated as part of remedial activities at the Surf Tech Site have not established offsite migration of contaminants. Based on this and other technical factors, the Company has been advised by its outside counsel that it has a strong defense against the claims alleged in the class action plaintiffs' complaint as well as the administrative actions." For a further description of Eaton Aerospace LLC v. SL Montevideo Technology, Inc. and the referenced administrative action, please see the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission. ABOUT SL INDUSTRIES SL Industries, Inc. designs, manufactures and markets Power and Data Quality (PDQ) equipment and systems for industrial, medical, aerospace, telecommunications and consumer applications. For more information about SL Industries, Inc. and its products, please visit the Company's web site at www.slpdq.com. Forward-Looking Statements This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: the effectiveness of the cost reduction initiatives undertaken by the Company, changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. * * * * *
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Filed: 25 Jul 02, 12:00am