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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