RCM Technologies, Inc. Tel: 856.486.1777
2500 McClellan Avenue Fax: 856.488.8833
Pennsauken, NJ 08109-4613 info@rcmt.com
www.rcmt.com
Corporate Contacts:
Leon Kopyt
Chairman, President & CEO
Brian Delle Donne
Chief Operating Officer
Stanton Remer, CPA
Chief Financial Officer
Kevin D. Miller
Senior Vice President
PRESS R E L E A S E
RCM TECHNOLOGIES, INC. ANNOUNCES
UNFAVORABLE JURY VERDICT
Pennsauken, NJ - January 27, 2003 -- RCM Technologies, Inc. (NNM: RCMT)
announced today that on January 24, 2003, a New Jersey Superior Court
jury returned a $7.6 million verdict against the Company in an action
stemming from claims by two shareholders, who were formerly officers
and directors of the Company, that they were wrongfully limited in
disposing of their restricted shares. Prejudgment interest on the
verdict will likely be sought. The Company believes that it has a
substantial legal basis for securing a reduction of the verdict. Also,
the Company will attempt to obtain a new trial on the damages award and
plans to appeal any judgment that maybe ultimately entered against the
Company. In addition, the Company is actively pursuing professional
liability claims against its former transactional counsel that, if
successful, would enable the Company to offset, in whole or in part,
any liability it incurs to the plaintiffs in the pending litigation.
The Company will record a charge and provide a legal reserve for the
verdict in the approximate amount of $8.6 million. This charge will be
reflected in the Company's financial results included in its annual
report on Form 10-K for the year ended December 31, 2002.
Should the Company be successful in pursuing any of its various avenues
of legal recourse with respect to the verdict, the legal reserve would
be adjusted accordingly.
About RCM
RCM Technologies, Inc., established in 1971, is a premier provider of
business and technology solutions designed to enhance and maximize the
performance of its customers through the adaptation and deployment of
advanced information technologies and engineering services. RCM is an
innovative leader in the design, development and delivery of these
solutions and services to a variety of industries. RCM's offices are
located in major metropolitan centers throughout North America.
Additional information can be found at www.rcmt.com.
The Statements contained in this release that are not purely historical
are forward-looking statements within the Private Securities Litigation
Reform Act of 1995 and are subject to various risks,uncertainties and
other factors, including developments in the litigation described in
this release, that could cause the Company's actual financial
condition, results, performance or achievements to differ materially
from those expressed or implied by such forward-looking statements.
Forward looking statements include, but are not limited to, those
relating to the Company's plans for recording a charge and providing a
legal reserve with respect to the referenced litigation, whether
plaintiffs will seek or be awarded pre-judgment interest, whether the
Company will seek and obtain a new trial or a reduced award, and
whether the Company will prevail on the referenced professional
liability claims. Investors are directed to consider such risks,
uncertainties and other factors described in documents filed by the
Company with the Securities and Exchange Commission.
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