The Supreme Court of Pennsylvania will not hear the Cybex International, Inc.’s or Mr. Kirila’s respective appeals of the previously reported $2,452,783 judgment entered against the Company in the Kirila v. Cybex International, Inc. litigation. Cybex officials expressed disappointment in this result, and continue to believe that the basis for that judgment was in error, but they do not intend to further pursue appeals.

The Company is discussing with plaintiffs counsel the amount of post-judgment interest to be added to the judgment, plus related costs, if any. The Company believes the total amount which the Company will be required to satisfy is covered by the Company’s litigation reserves, and accordingly the payment of the judgment, anticipated for the third quarter of this year, should not result in a charge to earnings.