STOCKHOLM, Sweden, April 23, 2003 (PRIMEZONE) -- Gambro AB (Other OTC:GAMOF) (Other OTC:GAMBF) (Stockholmsborsen:GAMBa), a leading international medical technology and healthcare company, today announced that a jury verdict was received in a lawsuit that had been pending in a United States court in Florida for approximately six years. As outlined in the Gambro Annual Report 2002 (Note 31), the lawsuit, Ginsburg et al. vs. Gambro et al., relates to a 1995 tender offer to all public stockholders in REN Corporation US (REN) pursuant to which Gambro, Inc. acquired all of the remaining outstanding shares of REN for a total consideration of nearly US $190M. In 1997 a former REN stockholder sued Gambro making various allegations regarding the transaction.
Trial began March 17, 2003 and the verdict was received on April 16, 2003. The jury awarded approximately US $3.7M in compensatory damages to the plaintiffs even though the plaintiffs had, during the trial, requested significantly higher compensatory damages, and would have requested punitive damages of several times the compensatory damages. The jury declined to award any punitive damages. Based on the level of compensatory damages awarded, pre-judgment interest in the amount of approximately US $2M is expected to be added. Gambro has filed a motion to reduce the amount of compensatory damages and accompanying interest on several legal grounds. When a final judgment is rendered, by the judge, certain attorneys fees and costs are expected to be added in amounts that have not yet been established. Once the judgment is entered both parties will have a limited period of time to appeal the verdict.
Gambro will accrue for the US $3.7M as an additional acquisition cost in the March 31, 2003 balance sheet (increase of goodwill and accruals), but, pending the final judgment no interest expense or legal fees subsequent to March 31 will be included in the first quarter income statement. These amounts are expected to be established before the end of the second quarter and will be reported accordingly.
For further information please contact: Bengt Modeer, Senior Vice President, Corporate Communications tel. +46-8-613 65 33, +46-70-513 65 33 Pia Irell, Investor Relations Director, Corporate Finance tel. +46-8-613 65 91, +46-70-513 65 91 Kevin Smith, President Gambro Inc., Investor Relations U.S. tel. +1-303 231 4750
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