Command Security Corp. announces finalization of agreement to resolve ISS dispute; acquisition of Worldwide Security Services Inc

Business Wire, Nov 6, 1996

LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--Nov. 6, 1996--Command Security Corp. (NASDAQ:CMMD) announced Wednesday that has finalized its agreement to resolve all pending issues with ISS International Service System Inc., in connection with its October 1993 acquisition of certain security guard assets.

Under the terms of the agreement the purchase price of the customer lists has been reduced by $500,000 which will be offset against the current $1 million note. Command has paid $100,000 of the remaining $500,000 due, with the balance of the note ($400,000) to be paid by Jan. 31, 1997.

Command also announced Wednesday that has completed the acquisition of the assets of Worldwide Security Services Inc. (WW), a provider of uniformed security services, based in Hinsdale, Ill. WW's annual revenue is in excess of $700,000. The purchase price before any adjustments for client retention, was approximately $140,000 paid via a combination of subordinated notes and cash.

William C. Vassell, chairman of the board of Command said: "We are pleased to have resolved the ISS matter which will improve our balance sheet and reduce amortization expense by more than $100,000 per year for the next four years."

Vassell added, "We expect the acquisition of Worldwide to fold-in nicely with our current operations in Chicago, consistent with our strategy to consolidate this fragmented industry."

Command Security Corp. provides security services through company owned offices in New York, New Jersey, California, Illinois, Connecticut and Florida and provides back-office service agreements to independent security companies nationwide.

CONTACT: Command Security Corp.

William C. Vassell, Chairman of the Board

914/454-3703

or

H. Richard Dickinson, Chief Financial Officer

212/689-6565

or

Radcliffe & Associates Inc.

Donald Radcliffe, 212/605-0174