Symbol Technologies Announces Settlement Agreement with PSC, Inc.

Symbol Technologies, Inc. today announced that it had entered into a settlement agreement with PSC, Inc., which is intended to resolve all current disputes between the parties. Currently the parties have two pending litigations relating to alleged breaches of supply agreements that were entered into as part of a settlement agreement reached in November 2000.

PSC is seeking to complete a Chapter 11 plan of reorganization that will, among other matters, adopt the settlement agreement reached by the parties. The settlement agreement between the parties is subject to bankruptcy court approval, as well as confirmation of PSC's plan of reorganization that is consistent with the settlement agreement.

Key provisions of the settlement are as follows:

• Symbol will receive a cash payment of $6 million on the effective date of PSC's plan of reorganization.
• The parties will dismiss all claims against each other in all pending litigations, terminate existing supply agreements relating to bioptic scanners and hand-held laser scanners.
• PSC will enter into a new long-term supply relationship with Symbol for the purchase of Symbol laser scan engines, permitting PSC to manufacture certain scanner-integrated terminals and industrial hand-held laser scanners using Symbol laser scan engines.
• PSC will continue to be a licensee of designated Symbol patents pursuant to an amended license agreement.

Leonard H. Goldner, Symbol executive vice president and general counsel, said, "I am pleased that we have reached an amicable settlement of the pending disputes between the companies. We believe that this settlement represents a fair resolution for both companies and provides Symbol with reasonable compensation for dismissing the litigation it brought against PSC last year and terminating the supply agreements relating to bioptic scanners and hand-held laser scanners. It also allows PSC to continue as a licensee of Symbol and a purchaser of Symbol scan engines."