Franklin Electronic Publishers, Inc. Update

Apr 02, 2001, 01:00 ET from Franklin Electronic Publishers, Inc.

    BURLINGTON, N.J., April 2 /PRNewswire/ -- Franklin Electronic Publishers,
 Inc. (NYSE:   FEP) today announced that the Chairman of its Board of Directors,
 Dr. James H. Simons, has subscribed for 3500 shares of convertible preferred
 stock of the Company in consideration for the payment of $3,500,000.  The
 preferred shares are convertible into common stock of the Company at a
 conversion price of $5.00 per share and bear interest at the rate of 10% per
 year, payable in kind every six months.  As a result of this investment and
 the results of operations during its fourth fiscal quarter, the Company
 expects that its 2001 fiscal year end balance sheet will reflect shareholders'
 equity in excess of $50,000,000.  The continued listing standards of the New
 York Stock Exchange require at least that level of shareholders' equity.
 Because of the recent decline in the price of the Company's common stock, the
 Company does not presently meet the other continued listing requirement of
 $50,000,000 in market capitalization.  Accordingly, no assurance can be given
 that Franklin's common stock will continue to be listed on the New York Stock
 Exchange.  As a result, the Company is investigating the listing of its common
 stock on other markets.
     Franklin Electronic Publishers, Inc. (NYSE:   FEP), the worldwide market
 leader in handheld electronic books, is the designer and distributor of the
 award winning multimedia eBookMan(R) platform.  The Company is the exclusive
 producer and distributor of the ROLODEX(R) Electronics brand of personal
 information management products.  Franklin has sold more than 25,000,000
 electronic books and currently publishes more than 200 titles, including
 dictionaries and bilingual dictionaries; encyclopedias; Bibles; entertainment
 titles; education and tutorial publications; and medical reference works.
 Franklin products, available in sixteen languages, are sold in 45,000 retail
 outlets worldwide, through catalogs and on line at franklin.com.  The Company
 has sales and distribution subsidiaries in the United Kingdom, France,
 Germany, the Benelux countries, Canada, Australia and Mexico, and production
 management offices in Tokyo and Hong Kong.
     ROLODEX(R) is a registered trademark of Berol Corporation, a subsidiary of
 Newell Rubbermaid, Inc.
 
     Except for the historical information contained herein, the matters
 discussed throughout this release, including, but not limited to, those that
 are stated as Franklin's belief or expectation or preceded by the word
 "should" are forward looking statements that involve risks to and
 uncertainties in Franklin's business, including, among other things, the
 timely availability and acceptance of new electronic books and organizers,
 changes in technology, the impact of competitive electronic products, the
 management of inventories, Franklin's dependence on third party component
 suppliers and manufacturers, including those that provide Franklin-specific
 parts, and other risks and uncertainties that may be detailed from time to
 time in Franklin's reports filed with the Securities and Exchange Commission.
 
 

SOURCE Franklin Electronic Publishers, Inc.
    BURLINGTON, N.J., April 2 /PRNewswire/ -- Franklin Electronic Publishers,
 Inc. (NYSE:   FEP) today announced that the Chairman of its Board of Directors,
 Dr. James H. Simons, has subscribed for 3500 shares of convertible preferred
 stock of the Company in consideration for the payment of $3,500,000.  The
 preferred shares are convertible into common stock of the Company at a
 conversion price of $5.00 per share and bear interest at the rate of 10% per
 year, payable in kind every six months.  As a result of this investment and
 the results of operations during its fourth fiscal quarter, the Company
 expects that its 2001 fiscal year end balance sheet will reflect shareholders'
 equity in excess of $50,000,000.  The continued listing standards of the New
 York Stock Exchange require at least that level of shareholders' equity.
 Because of the recent decline in the price of the Company's common stock, the
 Company does not presently meet the other continued listing requirement of
 $50,000,000 in market capitalization.  Accordingly, no assurance can be given
 that Franklin's common stock will continue to be listed on the New York Stock
 Exchange.  As a result, the Company is investigating the listing of its common
 stock on other markets.
     Franklin Electronic Publishers, Inc. (NYSE:   FEP), the worldwide market
 leader in handheld electronic books, is the designer and distributor of the
 award winning multimedia eBookMan(R) platform.  The Company is the exclusive
 producer and distributor of the ROLODEX(R) Electronics brand of personal
 information management products.  Franklin has sold more than 25,000,000
 electronic books and currently publishes more than 200 titles, including
 dictionaries and bilingual dictionaries; encyclopedias; Bibles; entertainment
 titles; education and tutorial publications; and medical reference works.
 Franklin products, available in sixteen languages, are sold in 45,000 retail
 outlets worldwide, through catalogs and on line at franklin.com.  The Company
 has sales and distribution subsidiaries in the United Kingdom, France,
 Germany, the Benelux countries, Canada, Australia and Mexico, and production
 management offices in Tokyo and Hong Kong.
     ROLODEX(R) is a registered trademark of Berol Corporation, a subsidiary of
 Newell Rubbermaid, Inc.
 
     Except for the historical information contained herein, the matters
 discussed throughout this release, including, but not limited to, those that
 are stated as Franklin's belief or expectation or preceded by the word
 "should" are forward looking statements that involve risks to and
 uncertainties in Franklin's business, including, among other things, the
 timely availability and acceptance of new electronic books and organizers,
 changes in technology, the impact of competitive electronic products, the
 management of inventories, Franklin's dependence on third party component
 suppliers and manufacturers, including those that provide Franklin-specific
 parts, and other risks and uncertainties that may be detailed from time to
 time in Franklin's reports filed with the Securities and Exchange Commission.
 
 SOURCE  Franklin Electronic Publishers, Inc.