Command Security Corp. announces agreement in principal to resolve ISS dispute

Business Wire, Sept 17, 1996

LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--Sept. 17, 1996--Command Security Corp. (NASDAQ:CMMD) announced Tuesday that has reached an agreement in principle 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 and Command has agreed to pay $100,000 of the remaining note to ISS immediately and the balance of the note ($400,000) by Jan. 31, 1997.

William C. Vassell, chairman of the board of Command said: "This agreement will have a positive impact on our balance sheet by immediately reducing our short term debt by $500,000 and Intangible Assets by $500,000. This will result in a reduction of more than $100,000 per year in amortization expense for the next four years."

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