MITCHEL FIELD, N.Y.--(BUSINESS WIRE)--Oct. 9, 2002--At its Annual
Meeting of Shareholders held today at Mitchel Field, Martin Bloch,
President and Chief Executive Officer of Frequency Electronics, Inc.
(AMEX- FEI), said that, based on the present view, the Company expects
a profitable year.
He noted that despite the current business climate the Company in
recent months has experienced improved revenues and earnings, and that
backlog is increasing. This is in contrast to other companies in
Frequency's peer group which have recently disclosed significant
declines in projected revenues with larger than expected losses.
Mr. Bloch also discussed the proposal the Company had made to the
board of directors of Datum Inc. (NASDAQ- DATM) on September 26, 2002,
to merge the two companies. Frequency had proposed to acquire each
outstanding share of Datum common stock for $2.00 in cash and 1 share
of Frequency common stock. The proposal was subject only to
negotiation of a definitive agreement containing customary conditions.
In a letter and press release dated October 7, 2002, Datum's board of
directors rejected the proposal without contacting Frequency to
discuss it. Subsequently, in a letter to Datum dated October 8, 2002,
Mr. Bloch expressed disappointment in Datum's response. Frequency has
no plans to make another proposal at this time.
In response to a Shareholder question, General Joseph Franklin,
Chairman of the Board, confirmed that the Company has recently
purchased, and continues to purchase, limited amounts of its common
stock in the open market.
The Company also declared its regular semi-annual cash dividend,
which is the subject of a separate press release.
About Frequency Electronics
Frequency Electronics, Inc. is a world leader in the design,
development and manufacture of high-technology frequency, timing and
synchronization products for satellite and terrestrial voice, video
and data telecommunications. The Company's technologies provide unique
solutions that are essential building blocks for the next generation
of broadband wireless and fiber optic communications systems, and for
the ongoing expansion of existing wireless and wireline networks.
Additional information is available on FEI's website:
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The Statements in this press release regarding
future earnings and operations and other statements relating to the
future constitute "forward-looking" statements pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
ability to integrate operations and personnel, actions by significant
customers or competitors, general domestic and international economic
conditions, consumer spending trends, reliance on key customers,
continued acceptance of the Company's products in the marketplace,
competitive factors, new products and technological changes, product
prices and raw material costs, dependence upon third-party vendors,
competitive developments, changes in manufacturing and transportation
costs, the availability of capital, and other risks detailed in the
Company's periodic report filings with the Securities and Exchange
Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or
changes after the date of this release.
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