VLFG Valley Forge Scientific Corp (MM)

KING OF PRUSSIA, Pa. and O'FALLON, Mo., Sept. 21 /PRNewswire-FirstCall/ -- Valley Forge Scientific Corp. (NASDAQ:VLFG)(BSE:VLF) and Synergetics, Inc. ("Synergetics"), a privately-held corporation, announced today that a federal jury found yesterday that Charles Richard Hurst, Jr. and Michael McGowan, each believed to be a fifty percent owner of Innovatech Surgical, Inc. (Innovatech), intentionally interfered with Synergetics' business relationships including any current Innovatech customers who are also former Synergetics customers. The jury further found that Hurst and McGowan misappropriated trade secrets, breached confidentiality agreements, breached fiduciary duties, including the duty of loyalty. The jury awarded Synergetics $1,759,165 in actual damages and $586,388 in punitive damages. Synergetics had originally filed this suit against these two ex-employees and principals of Innovatech on February 11, 2004. Innovatech is a competitor of Synergetics and a partner and supplier to Iridex, also a competitor of Synergetics. "We are pleased with this positive outcome for Synergetics shareholders and employees," said Gregg D. Scheller, president and chief executive officer of Synergetics. "Synergetics is a medical technology company that relies heavily on its trade secrets for success in the marketplace. Synergetics has and will continue to vigorously defend these trade secrets from those who wish to misappropriate them." Synergetics and Valley Forge are currently parties to a pending merger transaction. About Synergetics, Inc. Synergetics designs, manufactures and markets medical devices for use in ophthalmic surgery and neurosurgery. Synergetics' products are designed and manufactured to support micro or minimally invasive surgical procedures. In addition to Synergetics' surgical devices and equipment, it also designs and manufactures disposable and non-disposable supplies and accessories for use with such devices and equipment. Synergetics sells its products primarily to hospitals, clinics and surgeons in approximately 70 countries. About Valley Forge Scientific Valley Forge is a medical device company that develops, manufactures and sells medical devices for use in surgery and other healthcare applications. Its core business involves the sale of bipolar electrosurgical generators and other generators, based on its DualWave(TM) technology, and complementary instrumentation and disposable products. Its current line of products is used in neurosurgery, spine surgery, pain control and in dental applications. Forward-Looking Statements Some statements in this release may be "forward-looking statements" for the purposes of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements are based upon current expectations and beliefs and are subject to a number of factors. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward- looking statements, including but not limited to: the effects of local and national economic, credit and capital market conditions on the economy in general, and on the medical device industry in particular, and the effects of foreign exchange rates and interest rates; the ability to obtain or meet the closing conditions in the merger agreement between Valley Forge and Synergetics, and to otherwise complete the merger in a timely manner; the ability to timely and cost-effectively integrate the operations and management of Valley Forge and Synergetics; the ability to realize the synergies and other perceived advantages resulting from the merger; the ability to retain and attract key personnel both before and after the merger; the ability of each company to successfully execute its business strategies; the extent and timing of market acceptance of new products or product indications; the ability of each company to procure, maintain, enforce and defend its patents and proprietary know how; changes in laws, including increased tax rates, regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; the ability of the combined company to continue to increase customer loyalty; the ability to recoup costs of capital investments through higher revenues; environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues; the effects of environmental and structural building conditions relating to the combined company's properties; acts of war or terrorism incidents; the effects of operating and market competition; and other important factors disclosed previously and from time to time in the combined company's filings with the SEC and in the Joint Proxy Statement/Prospectus filed by Valley Forge and Synergetics with the SEC. Valley Forge undertakes no obligation to update these forward-looking statements. VALLEY FORGE SCIENTIFIC CORP. SYNERGETICS, INC. 3600 Horizon Drive 3845 Corporate Centre Drive King of Prussia, Pennsylvania 19406 O'Fallon, Missouri 63368 (484) 690-9000 (636) 939-5100 http://www.vlfg.com/ http://www.synergeticsusa.com/ Attn: Jerry L. Malis Attn: Pamela G. Boone, President and CEO Chief Financial Officer DATASOURCE: Valley Forge Scientific Corp. CONTACT: Jerry L. Malis, President and CEO, +1-484-690-9000, of Valley Forge Scientific Corp.; or Pamela G. Boone, Chief Financial Officer, +1-636- 939-5100, of Synergetics, Inc. Web site: http://www.vlfg.com/ http://www.synergeticsusa.com/

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