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TRANSTECH INDUSTRIES, INC. ANNOUNCES RESULTS OF ARBITRATION REGARDING PAYMENT DUE UNDER 1997 SETTLEMENT
PISCATAWAY, N.J., October 31, 2002- Robert V. Silva, President and Chief Executive Officer of Transtech Industries, Inc. (OTC BULLETIN BOARD:TRTI) announced that an arbitrator has ruled against the Company's interpretation of certain provisions of a 1997 Settlement Agreement (the "1997 Agreement"). As a result, the Company is obligated to pay a portion of the proceeds the Company received earlier this year from its 2001 settlement of claims against certain excess insurance carriers to certain parties to the 1997 Agreement.
As previously disclosed, during 1997 the Company entered into a series of agreements that settled litigation regarding the allocation of remediation costs related to the Kin-Buc landfill. Pursuant to one of the settlement agreements, SCA Services. Inc., together with its affiliates including Waste Management Inc. (the "SCA Parties"), agreed, among other things, to defend and indemnify the Company from certain liabilities for and in connection with the remediation of the landfill. The Company in-turn committed, among other things, to pay a portion of its proceeds, not to exceed $3.5 million, from its litigation with its excess insurance carriers. The 1997 Agreement provided a methodology for calculating the amount due to the SCA Parties. The recent arbitration addressed disputes regarding the components of such calculation, and resulted in findings in favor of the Company on some issues, and in the favor of SCA on others.
A revised calculation of the amount due is to be submitted to the arbitrator and the SCA Parties on or before November 10, 2002. The Company had placed $3.5 million of the insurance proceeds into escrow pending resolution of this issue. The Company will recognize a charge to income equal to the amount due the SCA Parties once such amount is determined.
This news release may contain forward-looking statements as defined by federal securities laws, that are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risks and uncertainties include among others, the following: general economic and business conditions; the ability of the Company to implement its business strategy; the Company's ability to successfully identify new business opportunities; changes in the industry; competition; the effect of regulatory and legal proceedings. The forward-looking statements contained in this news release speak only as of the date of release; and the Company does not undertake to revise those forward-looking statements to reflect events after the date of this release.
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