Measurement Specialties Announces Plans to Restate Prior Periods; Update on Filing Financial Results

Aug 21, 2002, 01:00 ET from Measurement Specialties

    FAIRFIELD, N.J., Aug. 21 /PRNewswire-FirstCall/ --
 Measurement Specialties (Amex:   MSS) today announced that, based on the
 recently completed analysis conducted by the Company and its auditors, the
 Company intends to restate earnings for the 2001 fiscal year, as well as the
 previously released 2002 fiscal quarters.  The decision was based largely on a
 detailed evaluation of capitalized overhead.  Along with representatives from
 Grant Thornton, LLP (the Company's current auditors who replaced Arthur
 Andersen), the Company has determined that the previously released financials
 do not accurately reflect operations, and therefore should be restated.
     As a result of restating fiscal 2001 (and given that the previously issued
 financial statements for fiscal 2001 and the Arthur Andersen report thereon,
 and the previously issued quarterly results for fiscal 2002, may no longer be
 relied upon), the Company will be required to have its fiscal 2001 results
 re-audited before completing the fiscal 2002 annual report and filing its Form
 10-K for the fiscal year ending March 31, 2002.  Accordingly, the Company will
 not be able to resume trading on the American Stock Exchange until its filings
 are complete.  As a result of the continued delay in filing its FY02 Form 10-K
 and first quarter FY03 Form 10-Q, AMEX has indicated they intend to initiate
 delisting proceedings, which the Company will appeal.  The Company, along with
 its auditors, is aggressively trying to complete all filings prior to the
 conclusion of the delisting proceeding; however, the Company cannot guarantee
 that it will be successful in doing so.
     "I am relieved to have reached a decision relative to the treatment of
 capitalized expenses, and look forward to getting this issue behind us and
 turning our attention to the future," commented Frank Guidone, CEO of
 Measurement Specialties.  "The future prospects remain strong as we continue
 to make solid progress on our restructuring efforts.  As previously announced,
 the restructuring is based on four key initiatives: (1) closing the Shaevitz,
 UK operation (located in Slough, UK), (2) selling the ICS wafer fabrication
 facility (located in Milpitas, CA), (3) downsizing the Piezo operation
 (located in Valley Forge, PA) and (4) selling Terraillon (located in Chatou
 Cedex, France).  Once complete, we anticipate these initiatives will return
 the Company to profitability and sufficiently reduce debt to allow a
 successful refinancing.  We have largely completed the first three
 initiatives, and are making good progress on the fourth.  It is unfortunate
 that the accounting challenges and continued delays have put us at risk of
 being delisted; we have every intention of completing the work required to
 become current with our filings and circumvent that process if at all
     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," "resume trading on the AMEX," "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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