Fingermatrix emerges from Chapter 11 bankruptcy

Business Wire, April 17, 1995

DOBBS FERRY, N.Y.--(BUSINESS WIRE)--April 17, 1995--Fingermatrix Inc. (NASDAQ EBB:FINXC) emerged Monday from its 19 months in Chapter 11 bankruptcy when the Trustee's Plan of Reorganization approved by the U.S. Bankruptcy Court March 31 became effective.

Hal M. Hirsch, trustee in bankruptcy for the company since last August, said the new management, headed by Tom Harding, president, will now assume full responsibility for the company's operations, reporting to a new board of directors which will be named shortly. Harding was brought aboard by Hirsch last Dec. 5.

Under the recapitalization called for in the Plan, 3 million new common shares with attendant A-Warrants will be distributed later this week. Fifty percent of that equity will remain in the hands of present shareholders, while the remainder will go to creditors, and investors and lenders who have provided capital for the company's exit from Chapter 11 and for on-going operations. The new shares will begin trading Tuesday, April 18 under FINX.

Old shares are null and void as of this date in accordance with the Plan of Reorganization.

Although the Plan involves approximately a one-for-12 reverse split in the common stock, each new share carries with it 1 2/3 A-Warrants exercisable at $1.00 per share for nine months. And, if the holder exercises the A-Warrants, he will receive one B-Warrant for each two A-Warrants exercised, with the B-Warrants exercisable at $2.00 over 21 months.

The Plan includes settlement of numerous claims made by Michael Schiller, the former chairman and president, and members of his family who were related to the company. Schiller and his son, Scott Schiller, formerly manager of investor relations, were both discharged by the trustee last November.

Fingermatrix invented electronic fingerprinting technology and has a variety of patents, including two covering the most advanced technology in the field, Hirsch said. All the company's systems and devices are currently being upgraded and refined, with the first advanced system slated for introduction before the end of this month, he added.

Hirsch will shortly transfer his control of the company to the new board of directors and management, and conclude his trusteeship except for certain limited functions.

CONTACT: Official Fingermatrix Equity Holders Committee

Gordon Molesworth, Chairman, 520/625-0035