Frequency Electronics Declines to Pursue Merger with Datum Inc

Business Wire, Dec 17, 1999

MITCHEL FIELD, N.Y.--(BUSINESS WIRE)--Dec. 17, 1999--

Frequency Electronics, Inc. (AMEX:FEI), today announced that it has no present intention of pursuing its previously announced proposal to merge with Datum Inc.

In a letter to Datum, Frequency said that it continues to believe that a merger of the two companies is in the best interest of the stockholders, customers and employees of both companies. The letter noted, however, that shortly after receiving Frequency's proposal to merge, Datum's board of directors adopted a rights plan and amended the Datum bylaws, actions which Frequency believes were intended to prevent Datum's stockholders from having the ability to consider and vote on Frequency's proposal. As a result of the Datum board's opposition and the measures it has adopted, Frequency has determined to move forward with its business and is considering selling its shares in Datum.

Frequency's letter to Datum has been included as an exhibit to its amended Schedule 13D filing with the Securities and Exchange Commission.