SOURCE: Innovative Designs, Inc.

September 12, 2007 07:00 ET

Innovative Designs Announces Legal Battle Nears Close

PITTSBURGH, PA--(Marketwire - September 12, 2007) - Innovative Designs, Inc. ("IDI") (OTCBB: IVDNQ) is pleased to announce that its lengthy legal battle with Eliotex, SRL ("Eliotex") and Elio D. Cattan ("Cattan") is drawing to a close, and that all claims against IDI relating to the judgment entered by Eliotex and Cattan are being withdrawn.

The judgment entered against Innovative Designs by Eliotex and Cattan has been purchased by French company Greystone, Inc. ("Greystone"). Greystone was involved in litigation with Eliotex and Cattan in arbitration proceedings in France on claims similar to those in dispute between IDI and Eliotex/Cattan. The Greystone matter was fully adjudicated by a French arbitration panel which found in favor of Greystone and entered an award against Eliotex and Cattan, jointly and severally.

Greystone, after determining that Eliotex/Cattan had no assets in Europe with which to pay the award, reduced its award to judgment in the U.S. District Court for the Western District of Pennsylvania and subsequently evidenced the judgment in the Court of Common Pleas of Allegheny County, Pennsylvania and commenced execution proceedings. At sheriff's sale conducted September 5, 2007, Greystone purchased the Eliotex/Cattan judgment against Innovative Designs, and is now the record owner of the judgment.

Greystone and IDI have reached an accommodation that provides for all claims against IDI relating to the judgment to be withdrawn. The Eliotex/Cattan judgment was the basis for the Involuntary Bankruptcy Petition filed against IDI, and Greystone will shortly be filing a Withdrawal of Claim in the United States Bankruptcy Court for the Western District of Pennsylvania, after which Innovative Designs will seek the dismissal of the Case.

IDI Chief Executive Officer Joseph Riccelli noted that the legal proceedings had been fierce and protracted, and that IDI still intends to pursue vindication through its pending appeal before the Third Circuit Court of Appeals. "Both the company and I have been through hell, but the battle is basically over, although our lawyers tell me some mopping up is left to be done," said Riccelli. "I want to thank the employees, shareholders and suppliers who never lost their faith in us. It was a long fight, but I always knew in my heart that we were in the right."

"IDI's future looks bright, and for the first time in a long time there are no clouds on the horizon. We're all excited about what this company can do, now that we can put the legal issues behind us. I think there are some amazing times ahead for the company and for the people who stuck with us."

The Company

Innovative Designs, Inc. manufactures the Arctic Armor™ Line, hunting apparel, swimwear, wind shirts, jackets, sleeping bags, and the multi-function "All in One" under the "i.d.i.gear" label featuring INSULTEX™. INSULTEX™ is the thinnest, lightest and warmest insulator in the market today. For more information, please visit http://www.idigear.com.

Disclaimer

Certain statements in this press release constitute "forward-looking" statements as defined by federal law. Such statements are based on assumptions, but there is no assurance that actual outcomes will not be materially different as those implied. Any such statements are made in reliance on the "Safe Harbor" protections provided under the Private Securities Reform Act of 1995 and are subject to various factors, including the risks and matters discussed in the Company's SEC filings available at http://www.sec.gov.

Contact Information

  • Contact:
    Gregory P. Domian
    Phone, 412-799-0350
    Cell, 412-551-7558