TRANSCRYPT SIGNS MOU ON CLASS-ACTION

LINCOLN, Neb.-Transcrypt International Inc. said it signed a memorandum of understanding with lead plaintiffs’ counsel to settle the pending stockholder class-action lawsuits against the company and certain of its current and former officers. The principal terms require a settlement fund to be established. The fund consists of 4.46 million shares of Transcrypt common stock and at least $3.85 million and up to $8.85 million to be paid by Transcrypt’s insurance carriers (depending on the outcome of an arbitration between plaintiffs and one of the insurance carriers). Transcrypt also said it will pay $2 million to the class if Transcrypt is acquired or merges with another company within 18 months of signing the MoU.