Exhibit 99.4
News From
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[LOGO OF IGI]
Buena, NJ 08310
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Release Date: February 7, 2002 Contact: Domenic Golato
Senior Vice President,
Chief Financial Officer
IGI, Inc.
856-697-1441 ext. 211
www.askigi.com
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IGI ANNOUNCES AGREEMENT TO SELL COMPANION PET
PRODUCTS DIVISION
Buena, NJ, IGI, Inc. February 7, 2002 - (AMEX:IG) today announced that it has
entered into a definitive asset purchase agreement for the sale of substantially
all of the assets of its companion pet products division to Vetoquinol U.S.A.,
Inc., an affiliate of Vetoquinol, S.A. of Lure, France. IGI's companion pet
products division produces and markets products under the names EVSCO
Pharmaceuticals, Tomlyn and Luv Em. Under the terms of the asset purchase
agreement, IGI will receive at closing cash consideration of $16.7 million. In
addition, specified liabilities of IGI's companion pet products division will be
assumed by Vetoquinol U.S.A. The cash consideration is subject to certain
post-closing adjustments.
The transaction also contemplates a license by IGI to Vetoquinol U.S.A. of
specified rights relating to the patented Novasome(R) microencapsulation
technology for use in specified products and product lines in the animal health
business, as well as a supply relationship under which IGI will supply to
Vetoquinol U.S.A. certain products relating to the patented Novasome(R)
microencapsulation technology.
The closing of the transactions contemplated by the asset purchase agreement is
subject to the authorization of IGI's stockholders and other customary closing
conditions.
"We anticipate that the divestiture of our companion pet products division will
permit us to substantially eliminate IGI's current outstanding debt and will
provide IGI with additional resources to use towards expanding the current
applications of the patented Novasome(R) microencapsulation technology outside
of the animal health business and funding research into other technology
enhancements and new applications," said John F. Ambrose, President and CEO of
IGI.
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About IGI, Inc.
IGI, Inc. is a company focused on growth by applying its technologies to deliver
cost-effective solutions to customer's problems. IGI solves problems in consumer
and skin care markets. An increasing number of IGI's solutions are based on the
patented Novasome(R) microencapsulation technology which offers value-added
qualities to cosmetics, skin care products, chemicals, biocides, pesticides,
fuels, medicines, foods, beverages, pet care products and other products.
Important Additional Information Will Be Filed With The SEC
IGI plans to file with the SEC and mail to its stockholders a Proxy Statement in
connection with the transaction described in this press release. The Proxy
Statement will contain important information about IGI, the transaction and
related matters. Investors and security holders are urged to read the Proxy
Statement carefully when it is available. Investors and security holders will be
able to obtain free copies of the Proxy Statement and other documents filed with
the SEC by IGI through the Web site maintained by the SEC at www.sec.gov.
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In addition, investors and security holders will be able to obtain free copies
of the Proxy Statement from IGI by contacting Investor Relations at IGI, Inc.,
Lincoln Avenue and Wheat Road, Buena, New Jersey 08310, telephone: (856)
697-1441.
IGI, Vetoquinol U.S.A. and IGI's directors and executive officers, may be deemed
to be participants in the solicitation of proxies in respect of the transaction
described by this press release. Information regarding IGI's directors and
executive officers is contained in IGI's Annual Report on Form 10-K for the year
ended December 31, 2000 and its Proxy Statement dated April 20, 2001, which are
filed with the SEC. Additional information regarding IGI's directors and
executive officers is contained in additional soliciting materials field by IGI
with the SEC under Rule 14a-12 on or about February 7, 2001. A more complete
description will be available in the Proxy Statement.
Forward-Looking Statements
Statements in this document regarding the asset purchase agreement, the expected
timetable for completing the transaction, benefits of the transaction,
application of the proceeds from the transaction, future opportunities and
strategies for IGI and any other statements about IGI's management's future
expectations, beliefs, goals, plans or prospects constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Any statements that are not statements of historical fact (including
statements containing the words "believes," "plans, "anticipates," "expects,"
"estimates" and similar expressions) should also be considered to be
forward-looking statements. There are a number of important factors that could
cause actual results or events to differ materially from those indicated by such
forward-looking statements, including: the ability to consummate the
transaction, the authorization by IGI's stockholders of the transaction in
compliance with applicable law; IGI's ability to realize anticipated benefits
and opportunities and to implement successfully proposed strategies; competitive
pressures; and the other factors described in IGI's Annual Report on Form 10-K
for the year ended December 31, 2000 and its most recent Quarterly Report on
Form 10-Q for the quarter ended September 30, 2001 filed with the SEC. IGI
cautions readers to consider carefully these and other such factors. Further,
such forward-looking statements speak only as the date on which such statements
are made.
IGI disclaims any intention or obligation to update forward-looking statements
as a result of developments occurring after the date of this document.