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.
November 11, 1999
Martin B. Bloch
President and Chief Executive Officer
Frequency Electronics, Inc.
55 Charles Lindbergh Boulevard
Mitchell Field, New York 11553
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
Erik H. van der Kaay
President and Chief Executive Officer
SOURCE Datum, Inc.
/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/
CO: Datum, Inc.; Frequency Electronics, Inc.
ST: California, New York
SU: TNM SRP
-0- Nov/12/1999 6:30
EOS (PRN) Nov/12/1999 06:30 85
-0- (PRN) Nov/12/1999 6:45
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