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Melville, New
York, April 2, 2003 - Andrea Electronics Corporation (AMEX: AND)
announced today that it has entered into an agreement to sell its
Aircraft Communications Products division to a private investor
group for $3.25 million, subject to net receivables and inventory
adjustments as of the balance sheet closing date. The Aircraft Communications
Products division is engaged in the manufacture and sale of intercommunications
systems and amplifiers primarily used on legacy military aircraft.
For the year-ended December 31, 2002, this business segment generated
approximately $3.3 million in revenue, and total operating profit
of approximately $688 thousand. Pursuant to the terms of the purchase
agreement, the Company will receive $2.5 million in cash by the
closing date, which management expects will be on or about April
11, 2003. The balance of the purchase price will be payable in equal
installments over the succeeding eleven month period.
"As previously
stated, we have been exploring various options to generate necessary
working capital to fund our Anti-Noise and DSP Microphone and Audio
Software products divisions," said Christopher P. Sauvigne,
President and Chief Executive Officer of Andrea Electronics. "We
expect the sale of this non-core business to enable Andrea to pursue
existing opportunities in the personal computer, video and audio
conferencing, telematics and call center communications markets."
As a result
of this transaction, and its effect upon the Company's ability to
prepare information necessary for its year end audit, Andrea Electronics
filed a Form 12b-25 with the Securities and Exchange Commission,
under Rule 12b-25, a notification of late filing of the Company's
Annual Report on Form 10-K. The Company expects that the Annual
Report on Form 10-K will be filed within the permitted extension
period. In addition, the Company will conduct its fourth quarter
and year-end conference call on April 14, 2003 at 10:30 AM EST.
Additional details regarding the conference call will be released
at a later time.
About Andrea
Electronics:
Andrea Electronics
Corporation designs, develops and manufactures audio technologies
and equipment for enhancing applications that require high performance
and high quality voice input. The Company's patented Digital Super
Directional Array (DSDA®), patented PureAudio®, patented
EchoStop® and patent-pending Directional Finding and Tracking
Array (DFTA®) far-field microphone technologies enhance a wide
range of communications products to eliminate background noise and
ensure the optimum performance of voice applications. Visit Andrea
Electronics' website at http://www.AndreaElectronics.com,
or call 1-800-442-7787.
This press release
may contain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. The words
"anticipates," "believes," "estimates,"
"expects," "intends," "plans," "seeks,"
variations of such words, and similar expressions are intended to
identify forward-looking statements. These statements are not guarantees
of future performance and involve matters that are subject to certain
risks, uncertainties and assumptions that are difficult to predict,
including economic, competitive, governmental, technological and
other factors, that may affect the business and prospects of Andrea
Electronics Corporation (the "Company"'). These and other
similar factors are discussed under the heading "Cautionary
Statement Regarding Forward-looking statements" included in
the Management's Discussion and Analysis of Financial Condition
and Results of Operations in the Company's Annual Report on Form
10-K and Annual Report not filed with the SEC, and in documents
subsequently filed by the Company with the Securities and Exchange
Commission.
AT ANDREA ELECTRONICS
CORP.
Richard Maue
Chief Financial Officer
Lauren Rivera
Marketing Communications Manager
(800) 442-7787
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