NEW YORK, Oct. 7, 2004 (PRIMEZONE) -- PubliCARD, Inc. (OTCBB:CARD) reported today that, as contemplated by an agreement between the Company and the Pension Benefit Guaranty Corporation ("PBGC"), the PBGC has terminated the Publicker Retirement Income Plan (the "Plan") and been appointed as the Plan's trustee. As such, the PBGC has assumed responsibility for the pensions of approximately 400 retired and former employees of the Company. The Company believes that all retirement benefits payable under the Plan are within the limits guaranteed by the PBGC.
Under the terms of the termination, the Company is liable to the PBGC for the amount of the unfunded guaranteed benefit payable by the PBGC to Plan participants in the amount of $7.5 million. The Company satisfied this liability by issuing a non-interest bearing note payable to the PBGC with a face amount of $7.5 million. The note payable is secured by all of the Company's assets and is due in September 2011. Earlier repayments on the note will be made to the PBGC if the Company achieves certain cash recovery thresholds.
About PubliCARD, Inc.
Headquartered in New York, NY, PubliCARD, through its Infineer Ltd. subsidiary, designs smart card solutions for educational and corporate sites. The Company's future plans revolve around a potential acquisition strategy that would focus on businesses in areas outside the high technology sector while continuing to support the expansion of the Infineer business. However, the Company will not be able to implement such plans unless it is successful in obtaining additional funding, as to which no assurance can be given. More information about PubliCARD can be found on its web site www.publicard.com.
Special Note Regarding Forward-Looking Statements: Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. Such factors include general economic and business conditions, the ability to fund operations and need to raise capital, the ability to identify and consummate acquisitions and strategic alliances, business and product development, time to market, the loss of market share, ability to attract and retain employees, development of competitive products by others, ability to protect our intellectual property, impact of pending litigation, liquidity of our common shares, market makers choosing not to make a market for our common shares on the OTC Bulletin Board and other factors over which PubliCARD has no control. For more information on the potential factors which could affect financial results, refer to the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2003, and quarterly reports on Form 10-Q for the quarters ended March 31, 2004 and June 30, 2004, as filed with the SEC.