MUKILTEO, Wash., Sept. 16, 2008 (GLOBE NEWSWIRE) -- CombiMatrix Corporation (Nasdaq:CBMX) clarified today that the Federal Court judgment in its favor against National Union, for $35.7 million, is not affected by AIG's present financial woes. In March of this year, National Union, an AIG member company, posted a bond with the Court, issued by The Insurance Company of the State of Pennsylvania, in the amount of $35.3 million, to satisfy the judgment. This bond provides the funds for collection of the judgment, irrespective of AIG's (and National Union's) financial condition.
In addition, on September 9, 2008, the United States District Court for the Central District of California ordered National Union to increase its bond to $39.2 million, which will cover any increase in the judgment in favor of CombiMatrix during the appeal process. National Union has until September 30, 2008 to increase its bond. In its order, the court specifically noted that the purpose of requiring this bond is to protect CombiMatrix "from the risk of a later uncollectible judgment."
"At the cost of being redundant, I want to reiterate that $35.3 million has already been posted in a bond by National Union. This bond is soon to be increased to $39.2 million dollars. This money is severed from the assets and liabilities of National Union and AIG. No matter what happens to those companies financially, these funds are safe and payable to us upon success in the appeal process. Many of our shareholders have asked about this and I wanted to absolutely clarify this point," Dr. Kumar, President and CEO of CombiMatrix stated.
ABOUT COMBIMATRIX CORPORATION
We are a diversified biotechnology business, through the development of proprietary technologies, products and services in the areas of drug development, genetic analysis, molecular diagnostics, nanotechnology research, defense and homeland security markets, as well as other potential markets where our products and services could be utilized. The technologies we have developed include a platform technology to rapidly produce oligonucleotide arrays for use in identifying and determining the roles of genes, gene mutations and proteins. We make the arrays using our patented in situ electrochemical synthesis process, which provides the ability to easily change array content to stay current with new developments and to meet the evolving needs of our customers. This technology has a wide range of potential applications in the areas of genomics, proteomics, biosensors, drug discovery, drug development, diagnostics, combinatorial chemistry, material sciences and nanotechnology. We have also developed the capabilities of producing arrays that utilize bacterial artificial chromosomes on our arrays, also enabling genetic analysis. Other technologies include proprietary molecular synthesis and screening methods for the discovery of potential new drugs. CombiMatrix Molecular Diagnostics, Inc. ("CMDX"), our wholly owned subsidiary located in Irvine, California, has developed capabilities of producing arrays that utilize bacterial artificial chromosomes, which also enable genetic analysis. CMDX functions primarily as a diagnostics reference laboratory.
Additional information about CombiMatrix Corporation is available at www.combimatrix.com or by calling 1-800-985-CBMX (2269). Additional information about CMDX is available at www.cmdiagnostics.com or by calling 1-800-710-0624.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the recent economic slowdown affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory, and competitive developments, and general economic conditions. Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations, and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.