SOURCE: Nashua

December 05, 2006 16:10 ET

Nashua Corporation Announces Ruling in Cerion Litigation

NASHUA, NH -- (MARKET WIRE) -- December 5, 2006 -- Nashua Corporation (NASDAQ: NSHA), a manufacturer and marketer of labels and specialty papers today announced that on November 29, 2006 the Supreme Court of Illinois declined to hear the appeal by the plaintiffs in a case against Cerion Technologies, Inc., Nashua Corporation, and others. Earlier this year, the Appellate Court of Illinois had dismissed the plaintiffs' appeal of an August 16, 2005 Order of the Circuit Court of Cook County, which had granted defendants' motion for summary judgment. On August 4, 2006, the plaintiffs filed a petition with the Supreme Court of Illinois for leave to appeal the Appellate Court's order.

The suit was initially filed by Phillippe Olczyk and others in 1996. The original complaint alleged that Cerion Technologies, Inc., a former subsidiary of Nashua Corporation, had issued materially false and misleading statements and omitted the disclosure of certain material facts in connection with its initial public offering (IPO). The defendants denied any wrongdoing regarding statements about Cerion Technologies Inc., which ceased operations in November 1998.

Tom Brooker, Nashua's President and Chief Executive Officer said: "We are pleased with the Supreme Court's decision, which resolves a long-standing legacy issue."

About Nashua

Nashua Corporation manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The Company's products include thermal coated papers, pressure-sensitive labels, bond, point of sale, ATM and wide format papers, entertainment tickets, as well as ribbons for use in imaging devices. Additional information about Nashua Corporation can be found at: www.Nashua.com.

Forward-looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "plan," "should," "will," "expects," "anticipates" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the Company's future capital needs and resources, fluctuations in customer demand, intensity of competition from other vendors, timing and acceptance of new product introductions, delays or difficulties in programs designed to increase sales and profitability, general economic and industry conditions, the settlement of various tax issues, and other risks set forth in the Company's filings with the Securities and Exchange Commission, and the information set forth herein should be read in light of such risks. In addition, any forward-looking statements represent the Company's estimates only as of the date of this press release and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if its estimates change.

Contact Information

  • Contact:
    Tom Brooker
    Nashua Corporation
    847-318-1797

    John Patenaude
    Nashua Corporation
    603-880-2145

    Rich Coyle
    Citigate Sard Verbinnen
    212-687-8080