
For Immediate Release - December 22, 1997
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REDWOOD CITY, CALIFORNIA - CALIFORNIA MICROWAVE, INC. (Nasdaq National Market:CMIC) announced in November 1995, that a shareholders class action lawsuit had been filed in the United States District Court for the Northern District of California against it and certain of its former officers on behalf of persons who purchased shares of the company’s common stock between September 6, 1994, and June 29, 1995. The complaint filed in the lawsuit alleged certain violations of the federal securities laws by the company and certain of its former officers and sought damages in an unspecified amount. Although California Microwave does not believe that it or its former officers committed any securities law violations and considers the allegations made in the class action suit to be without merit, in order to avoid the expense and distraction of protracted litigation, the company has reached an agreement to settle the lawsuit. It is anticipated that the net expense of the settlement (including defense costs) to the company, which will be recorded as an expense in California Microwave’s fiscal 1998 second quarter, will amount to approximately $1.9 million, before taxes, or approximately $.07 per share. Final settlement of the lawsuit is subject to notice to the members of the class of the proposed settlement and approval of the settlement by the Court. California Microwave, Inc. is a leading U.S. supplier of satellite earth station and microwave radio infrastructure products and information and collection systems. For more information, contact: |
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Stephanie M. Day Vice President Corporate Communications (415) 596-6629 |
Investor Information Line: (Toll-free) 1-888-225-6789 http://www.calmike.com. |
Deborah Passik William Dunk Partners, Inc. (919) 929-4100 |
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