Pavilion Technologies and KFx Subsidiary Agree to Drop Lawsuit

Apr 12, 2001, 01:00 ET from Pegasus Technologies, Inc.

    AUSTIN, Texas and CLEVELAND, April 12 /PRNewswire/ -- Pavilion
 Technologies Inc. and Pegasus Technologies, Inc. today jointly announced that
 they have agreed to dismiss all current litigation presently styled "Pavilion
 Technologies, Inc. v. Pegasus Technologies, Inc. and Pegasus Technologies,
 Ltd.", Civil Action No. 1-01-00053-LW, United States District Court for the
 Northern District of Ohio, Cleveland Division, without prejudice, in order to
 explore possible combinations.
     "This action underscores the high value both Pegasus and Pavilion place on
 our respective neural network technologies," said Gary Nicholson, CEO of
 Pegasus.  "Both of our companies remain committed to the aggressive
 application of this powerful technology to help our target markets solve and
 optimize the complex business problems they face every day.  The market
 opportunity for these strategic IT solutions is growing at a rapid pace and we
 want to focus our energies on delivering the best possible products and
 solutions to our clients," Nicholson added.
     "While Pavilion remains steadfast in the diligent and uncompromising
 protection of our strategically valuable intellectual property, Gary and I
 have concluded that taking these steps together may well provide both
 companies with a singular opportunity to initiate major progress in the
 advancement and delivery of Enterprise Optimization solutions to our target
 markets," said Pete Perialas, CEO of Pavilion.  "The power and utility sectors
 are primed to take advantage of the significant value this technology can
 deliver and Pegasus enjoys a strong presence and domain expertise in these
 segments.  There are a myriad of possible combinations that could leverage the
 proven Enterprise Optimization capabilities of Pavilion and the demonstrated
 domain expertise found in Pegasus," Perialas went on to say.
 
     About Pavilion
     Pavilion Technologies, Inc. is an enterprise decision optimization
 solutions company, helping businesses leverage the power of their information
 assets to make the best automatic decisions.  Through its family of companies,
 Pavilion, Trajecta, and PAVTech New Zealand, Pavilion provides intelligent
 solutions to a variety of industries, from financial services to industrial
 manufacturing.  Pavilion has successfully implemented over 1,700 solutions at
 more than 200 global customer sites worldwide.  Pavilion's engineering and
 consulting expertise coupled with its patented, cutting-edge decision
 technology provides turnkey solutions that enable Pavilion customers to
 realize millions of dollars in recurring benefits.  For more information,
 visit the Pavilion web site at www.pavtech.com.  Established in 1991, Pavilion
 is a privately held corporation with offices in the U.S., Belgium, Japan, and
 New Zealand.
 
     About Pegasus
     Pegasus is the industry leader in neural network based IT applications for
 the power generation market.  The NeuSIGHT suite of combustion optimization
 applications from Pegasus reduce emissions and increase efficiency of fossil
 fueled electric generating units.  The Pegasus web site address is
 www.pegasustec.com.  Pegasus is majority-owned by KFx Inc. (Amex:   KFX). KFx
 provides total fuel solutions for the power industry.  Its patented K-Fuel(R)
 process converts low heating value coal into clean, high energy fuel.  KFx's
 web site address is www.kfx.com.
     The discussion above contains, in addition to historical information,
 forward-looking statements that include various risks and uncertainties.  Such
 forward-looking statements include statements regarding the Company's
 expectations.  The Company's actual results may differ materially from those
 anticipated in such statements.  Factors that might cause such a difference
 include matters discussed in "Business Risk Factors" at Item 1 and in
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations" at Item 7 of the Company's Annual Report on Form 10-K/A for the
 year ended December 31, 1999 and in "Management's Discussion and Analysis of
 Financial Condition and Results of Operations" at Part I, Item 2 of the
 Company's Quarterly Report on Form 10-Q for the quarter ended September 30,
 2000.
 
 

SOURCE Pegasus Technologies, Inc.
    AUSTIN, Texas and CLEVELAND, April 12 /PRNewswire/ -- Pavilion
 Technologies Inc. and Pegasus Technologies, Inc. today jointly announced that
 they have agreed to dismiss all current litigation presently styled "Pavilion
 Technologies, Inc. v. Pegasus Technologies, Inc. and Pegasus Technologies,
 Ltd.", Civil Action No. 1-01-00053-LW, United States District Court for the
 Northern District of Ohio, Cleveland Division, without prejudice, in order to
 explore possible combinations.
     "This action underscores the high value both Pegasus and Pavilion place on
 our respective neural network technologies," said Gary Nicholson, CEO of
 Pegasus.  "Both of our companies remain committed to the aggressive
 application of this powerful technology to help our target markets solve and
 optimize the complex business problems they face every day.  The market
 opportunity for these strategic IT solutions is growing at a rapid pace and we
 want to focus our energies on delivering the best possible products and
 solutions to our clients," Nicholson added.
     "While Pavilion remains steadfast in the diligent and uncompromising
 protection of our strategically valuable intellectual property, Gary and I
 have concluded that taking these steps together may well provide both
 companies with a singular opportunity to initiate major progress in the
 advancement and delivery of Enterprise Optimization solutions to our target
 markets," said Pete Perialas, CEO of Pavilion.  "The power and utility sectors
 are primed to take advantage of the significant value this technology can
 deliver and Pegasus enjoys a strong presence and domain expertise in these
 segments.  There are a myriad of possible combinations that could leverage the
 proven Enterprise Optimization capabilities of Pavilion and the demonstrated
 domain expertise found in Pegasus," Perialas went on to say.
 
     About Pavilion
     Pavilion Technologies, Inc. is an enterprise decision optimization
 solutions company, helping businesses leverage the power of their information
 assets to make the best automatic decisions.  Through its family of companies,
 Pavilion, Trajecta, and PAVTech New Zealand, Pavilion provides intelligent
 solutions to a variety of industries, from financial services to industrial
 manufacturing.  Pavilion has successfully implemented over 1,700 solutions at
 more than 200 global customer sites worldwide.  Pavilion's engineering and
 consulting expertise coupled with its patented, cutting-edge decision
 technology provides turnkey solutions that enable Pavilion customers to
 realize millions of dollars in recurring benefits.  For more information,
 visit the Pavilion web site at www.pavtech.com.  Established in 1991, Pavilion
 is a privately held corporation with offices in the U.S., Belgium, Japan, and
 New Zealand.
 
     About Pegasus
     Pegasus is the industry leader in neural network based IT applications for
 the power generation market.  The NeuSIGHT suite of combustion optimization
 applications from Pegasus reduce emissions and increase efficiency of fossil
 fueled electric generating units.  The Pegasus web site address is
 www.pegasustec.com.  Pegasus is majority-owned by KFx Inc. (Amex:   KFX). KFx
 provides total fuel solutions for the power industry.  Its patented K-Fuel(R)
 process converts low heating value coal into clean, high energy fuel.  KFx's
 web site address is www.kfx.com.
     The discussion above contains, in addition to historical information,
 forward-looking statements that include various risks and uncertainties.  Such
 forward-looking statements include statements regarding the Company's
 expectations.  The Company's actual results may differ materially from those
 anticipated in such statements.  Factors that might cause such a difference
 include matters discussed in "Business Risk Factors" at Item 1 and in
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations" at Item 7 of the Company's Annual Report on Form 10-K/A for the
 year ended December 31, 1999 and in "Management's Discussion and Analysis of
 Financial Condition and Results of Operations" at Part I, Item 2 of the
 Company's Quarterly Report on Form 10-Q for the quarter ended September 30,
 2000.
 
 SOURCE  Pegasus Technologies, Inc.