EXHIBIT 99(a)
[LOGO]
NEWS
RELEASE
PICO PRODUCTS, INC.
12500 Foothill Blvd.
Lakeview Terrace, California 91342
(800) 421-6511
FAX (818) 899-1381
CONTACT:
Jim Selzer
VP and CFO
FOR IMMEDIATE RELEASE (818) 834-7110
PICO PRODUCTS SELLS ITS TRAP AND FILTER MANUFACTURING OPERATIONS AND
ESTABLISHES A DISTRIBUTION ARRANGEMENT WITH THOMAS & BETTS
Lakeview Terrace, California - September 3, 1998: Confirming its earlier
announcement of negotiations with prospective buyers, Pico Products, Inc.
today completed the sale of its trap and filter manufacturing operations to
Thomas & Betts Corporation for $5.2 million in cash. Pico will continue to
market and sell its traps through a five year distribution agreement with
Thomas & Betts who is a leading worldwide manufacturer of connectors and
components for electrical and electronics markets including the cable
television (CATV) industry.
Traps and filters are used in the cable television industry to control
signals delivered to residential and/or business customers. Traps either
allow or deny designated channels from being viewed by the customer. Filters
are used to improve the reliability and protect the integrity of transmission
data by removing or minimizing electronic noise that can be present in the
CATV system. This latter capability has increasing importance as the CATV
industry moves to expand its return path services including pay per view,
telephony and internet communications.
Charles G. Emley, Jr., Chairman and Chief Executive Officer stated: "With
this sale, and much of our cost restructuring behind us, Pico is now shifting
its turnaround efforts to transform the business. It gives Pico the benefits
of a strong manufacturing source for its traps and filters and the ability to
concentrate our efforts on expanding its sales of these products. Our
customers should be very pleased at our improved ability to sell and deliver
large quantities of our Pico traps and filters. The Company has had a long
history in this business ranging from being the first in the late 1970's to
manufacture an outdoor positive trap through our current use of advanced
surface mount design high pass and window filters in the growing CATV
internet return path subscriber market.
"Proceeds from the sale will give Pico a much improved balance sheet with
reduced debt and lower inventories. The reduction in carrying charges for
the inventory alone will improve our liquidity. This along with an almost $4
million reduction in our SG&A year to year expense run rate will help
immensely in shifting our resources to obtain and sell new products from
suppliers with improved customer availability. "Also, Pico will be able to
retire a portion of its outstanding warrants associated with its recent debt
financings thereby reducing the risk of dilution to future shareholders
earnings.
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"Finally, our distribution agreement with Thomas & Betts will include access
for our customers to some of the finest hard line connectors, drop wire
connectors and pole attachment hardware which are currently manufactured
under the LRC, Diamond and Diamond-Sachs brand names."
Pico Products, Inc. manufactures and distributes broadband electronic systems
and components for the worldwide cable television and telecommunications
industry. The Company's headquarters are in Lakeview Terrace, California.
The foregoing statements describing the effects of the sale of the trap and
filter manufacturing business are forward looking in nature and actual
results may differ from those expressed or implied based upon a number of
risk factors, including: the Company's ability to implement its sales
strategies and reduce its cost structure, competitive actions, the nature and
pace of technological development, and general economic and business
conditions.
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