Cybex International, Inc. announced that the Superior Court of Pennsylvania has affirmed the previously reported $2,452,783 judgment entered March 31, 2004 against the company in the Kirila v. Cybex International, Inc. litigation. Cybex said it continues to believe that the basis for that judgment was in error, and it intends to file a Petition for Allowance of Appeal with the Supreme Court of Pennsylvania.
CYBEX is in the process of analyzing whether any net adjustment to its litigation reserve is required, including in connection with the Kirila judgment and related costs and expenses, including interest. The Company anticipates that, if a litigation charge is necessary, the impact on fourth quarter 2005 pre-tax operating income will not exceed $900,000. While CYBEX intends to continue its appeal in the Kirila matter, it has sufficient liquidity to satisfy the judgment if its appeal to the Supreme Court of Pennsylvania is ultimately unsuccessful.
