Measurement Specialties Announces Bridge Loan; Q2 Sales

Nov 01, 2002, 00:00 ET from Measurement Specialties

    FAIRFIELD, N.J., Nov. 1 /PRNewswire-FirstCall/ --
 Measurement Specialties (Amex:   MSS) today announced it has closed a
 $9.3 million bridge loan from Castletop Capital, L.P., a limited partnership
 controlled by Mort Topfer, Vice Chairman of MSS. The loan proceeds were used
 to refinance the existing bank term loan and revolving debt. The new loan is
 secured by substantially all of the assets of the Company, and matures January
 31, 2003. Castletop Capital, L.P. also received a warrant to purchase up to
 2.49% of the Company's common stock.
     "The proceeds of this loan have allowed us to satisfy all of our
 outstanding obligations under the previous bank credit agreement which, under
 the forbearance agreement, matured November 1, 2002," commented Frank Guidone,
 Company CEO. "Once the second quarter is closed, we will resume our efforts to
 secure a new revolving credit facility and retire the bridge loan."
     The Company also announced strong sales for the quarter ended
 September 30, 2002. Total Consumer sales, boosted by strong promotional demand
 for tire gauges, were approximately $19 million. Total Sensor sales, at
 approximately $13.5 million, enjoyed a record quarter (including intercompany
 shipments, sensor sales exceeded $15 million).  For the six months ended
 September 30, 2002, total third party sales were approximately $56 million.
     "While the Company has been tackling difficult issues throughout the
 restructuring" continued Guidone, "we have worked very hard to maintain our
 commitments and service levels to our customers. Our customer support has been
 strong, which is evident in the top line."
     Measurement Specialties is a designer and manufacturer of sensors, and
 sensor-based consumer products.  Measurement Specialties produces a wide
 variety of sensors that use advanced technologies to measure precise ranges of
 physical characteristics, including pressure, motion, force, displacement,
 angle, flow, and distance.  Measurement Specialties uses multiple advanced
 technologies, including piezoresistive, application specific integrated
 circuits (ASICs), micro-electromechanical systems (MEMS), piezopolymers, and
 strain gages to allow their sensors to operate precisely and cost effectively.
     This release includes forward-looking statements within the meaning of
 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
 Securities and Exchange Act of 1934, as amended, including but not limited to,
 statements regarding the continued production of current product lines.
 Forward looking statements may be identified by such words or phases as
 "intends", "are expected to", "will continue", "is anticipated", "estimated",
 "projected", "may", "continued listing on the exchange", "we believe", "future
 prospects", "continue to make solid progress", "return the Company to
 profitability" or similar expressions.  The forward-looking statements above
 involve a number of risks and uncertainties.  Factors that might cause actual
 results to differ include, but are not limited to, success of any
 reorganization; consummation of any contemplated sale of assets; ability to
 raise additional funds; the outcome of the class action lawsuits filed against
 the Company; the outcome of the current SEC investigation of the Company;
 conditions in the general economy and in the markets served by the Company;
 competitive factors, such as price pressures and the potential emergence of
 rival technologies; interruptions of suppliers' operations affecting
 availability of component materials at reasonable prices; timely development
 and market acceptance, and warranty performance of new products; success in
 integrating prior acquisitions; changes in product mix, costs and yields,
 fluctuations in foreign currency exchange rates; uncertainties related to
 doing business in Hong Kong and China; and the risk factors listed from time
 to time in the Company's SEC reports.  The Company is involved in an announced
 active disposition program.  Forward-looking statements do not include the
 impact of acquisitions or dispositions of assets, which could affect results
 in the near term.  Actual results may differ materially.  The Company assumes
 no obligation to update the information in this issue.
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SOURCE Measurement Specialties