IRVINE, Calif., Nov. 12 /PRNewswire/ -- Datum Inc. (Nasdaq: DATM), announced today that its board of directors had unanimously rejected the unsolicited merger proposal it received earlier this week from Frequency Electronics, Inc. (Amex: FEI). Erik H. van der Kaay, Datum's President and Chief Executive Officer, stated, "Datum's board and management are firmly convinced that the Company's current business plan will provide superior returns for our stockholders. We have never been more excited about our future prospects as an independent company. We have invested heavily in research and development for the next generation of products to serve our customers' needs as we move into the 21st century. With the continued dedication of our many valued employees, we are well prepared to meet the challenges ahead and deliver the rewards to our stockholders that they deserve for their patience over the last two years." The Company also released the text of its letter to FEI responding to the merger offer (attachment). The Company further announced that November 22, 1999 is the record date for the issuance of rights pursuant to the Rights Plan the Company adopted on November 8, 1999. Datum designs, manufactures and markets a wide variety of high-performance time and frequency products used to synchronize the flow of information in telecommunications networks. The Company is also a leading supplier of precise timing products for computing networks, satellite systems, electronic commerce and test and measurement applications. This press release contains forward-looking statements. The forward-looking statements, which reflect management's best judgment based on factors currently known, involve a number of risks and uncertainties, including the following: customer concentration, competition, availability of supplies and components, fluctuations in demand for wireless and wireline communication services and products, and acceptance of the Company's products and technology. These factors and other risks inherent in the Company's business are described from time to time in the Company's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 1998 and Form 10-Q for the quarter ended June 30, 1999. Actual results may vary materially. The Company undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. ATTACHMENT November 11, 1999 Martin B. Bloch President and Chief Executive Officer Frequency Electronics, Inc. 55 Charles Lindbergh Boulevard Mitchell Field, New York 11553 Dear Martin: Our Board of Directors has asked me to respond to your unsolicited merger proposal you publicly announced on November 9, 1999. As I indicated to you previously in our telephone conversation on November 8, 1999, Datum's Board of Directors sees no merit in pursuing a merger between our two companies. We are convinced that our prospects as an independent company are significantly greater than would be the prospects of the merged company, and that our current strategic business plan will produce superior value for our stockholders. We have invested heavily in research and development for the next generation of products to serve our customers' needs as we move into the 21st century, and we believe we are favorably positioned to reward our stockholders for their patience over the last two years. Accordingly, the Datum board of directors has unanimously voted to reject your unsolicited merger proposal. Cordially, Erik H. van der Kaay President and Chief Executive Officer SOURCE Datum, Inc. -0- 11/12/1999 /CONTACT: David A. Young, Chief Financial Officer of Datum, Inc., 949-598-7575; or Dan Burch, 212-929-5748, or Larry Dennedy, 212-929-5239, both of MacKenzie Partners, Inc., for Datum, Inc./ /Web site: http://www.datum.com/ (DATM FEI) CO: Datum, Inc.; Frequency Electronics, Inc. ST: California, New York IN: CPR SU: TNM SRP -0- Nov/12/1999 6:30 EOS (PRN) Nov/12/1999 06:30 85 â -0- (PRN) Nov/12/1999 6:45
DATUM BOARD REJECTS UNSOLICITED MERGER PROPOSAL
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