EDCI Holdings, Inc. Announces Settlement of Subsidiary Patent Litigation

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Aug 20, 2013, 04:15 ET

NEW YORK, Aug. 20, 2013 /PRNewswire/ -- EDCI Holdings, Inc. (FORMERLY PINK SHEETS: EDCI) (the "Company" or "EDCI"), today announced the following developments related to its majority investment in Entertainment Distribution Company, LLC ("EDC").

As previously disclosed, EDC has been a defendant in federal and state patent litigation related to its prior manufacturing operations. Included within the damages pleaded against EDC were amounts that relate to claims the plaintiff was pursuing jointly against EDC and one of its customers, for which EDC believes it has indemnification rights under certain contractual arrangements.

Effective August 20, 2013, the Court has entered an order affirming the voluntary dismissal of all claims, counterclaims and defenses the EDC patent litigation matters as a result of a voluntary mutual settlement. Terms of the settlement are confidential and are not being disclosed.

EDC and EDCI are currently evaluating making a distribution as a result of the settlement. Both companies will still need to maintain reserves necessary to complete the dissolution of EDCI and various subsidiaries, including carrying costs related to the sale of EDC's Kings Mountain, North Carolina facility. EDCI currently estimates the distribution to its stockholders would be approximately $22.7 million, or $3.83 per share.

EDCI reminds its stockholders that effective January 25, 2013, EDCI has closed its transfer books. As such, certificates representing shares of our Common Stock will not be assignable or transferable on our books except by will, intestate succession or operation of law, and we will not issue any new stock certificates, other than replacement certificates. Transactions effected on the Pink Sheets or otherwise are not, accordingly, legally transfers of EDCI stock. Reference to the EDCI Pink Sheet trading ticker in this press release has been made in an effort to ensure the press release is made available on a website that the owners of EDCI stock as of January 25, 2013 have previously used to access updates on EDCI. EDCI is not otherwise undertaking to make any future information available, whether pursuant to any Pink Sheets / OTC Markets / or other disclosure standards.

About EDCI Holdings, Inc.

EDCI Holdings, Inc. (FORMERLY PINK SHEETS: EDCI) is engaged in carrying-out its Plan of Complete Liquidation and Dissolution (the "Plan of Dissolution"), approved by EDCI's stockholders on January 7, 2010. EDCI is also the majority equity-holder of Entertainment Distribution Company, LLC ("EDC").

SOURCE EDCI Holdings, Inc.