Mtc Shareholders Committee Receives Letters Of Support From Chinese Government; Reports On Executive Compensation Plan Tied To Market Performance; Says No Need For Grande's Cash Infusion

Business Wire, Dec 9, 1994

NEW YORK--(BUSINESS WIRE)--December 9, 1994--The Shareholders Committee to Rescue MTC Electronics Technologies Company, Ltd. (NASDAQ: MTCFE) today said that it has received letters of support from the Chinese Bureau of Post and Telecommunications as well as the Guangdong Public Security Bureau, currently a joint venture partner with MTC in China, indicating that they will reenergize the joint venture if the Committee's slate of directors is elected to office.

Harry Edelson, of the Shareholders Committee, also told shareholders that the Committee is committed to the company's success and creating value for all shareholders. He said that his proposed slate would only receive a compensation benefit when it had created a benefit in value to shareholders. He proposed a stock option plan for the Board of Directors and Executive Committee not to exceed 1.4 million shares (when issued) which would only be triggered at incremental market prices above the current level, in 20% tranches, at $5, $8, $11, $14 and $20. "This way, the benefit for our risk and dedicated effort to turn MTC around can only be attained commensurate with a return to all investors," Edelson said.

Continuing, Edelson noted, "MTC management is trying to solicit stockholder votes with plans of a cash infusion of $10 to $20 million when there is no need for additional capital and when it will only penalize existing shareholders. What MTC needs is not more cash, rather effective utilization of the nearly $30 million in cash on hand into exciting projects that will elevate the stock price!"

CONTACT: Harry Edelson

              Edelson Technology Partners
              201/843-4590
                    or
              Ruder Finn, Inc.
              Robert Ferris, 212/715-1573
              Caryn Carter, 212/715-1683