December 29, 2003 11:25

Struthers Inc Preferred Shareholders Approve Waiver of Conversion Rights
MOUNT PLEASANT, S.C., Dec 29, 2003 (BUSINESS WIRE) -- Struthers, Inc.(OTC Pink Sheets: STRU) announced today the results of a proposal recently submitted to its Preferred Class "B" shareholders.

In a tremendous showing of support for the future progress of the Company, Preferred Class "B" shareholders of Struthers, Inc. (STRU) have overwhelmingly voted to approve a waiver of their rights to immediate conversion of their shares, and agreed to an installment plan providing for partial distributions over an extended period. Under the plan, the Preferred Class "B" shareholders will be able to convert 25% of their remaining shares on each of four quarterly conversion dates, beginning March 31, 2004 and ending December 31, 2004.

According to a Company spokesperson, the proposal to defer conversion of the Preferred Class "B" shares was based on suggestions forwarded to the Board of Directors by several of the Preferred Class "B" shareholders. As of December 14, 2003 there remained 1,924,856 of unconverted Preferred Class "B" shares, from an original issuance of 5,000,000 shares in March and April of 2000. Inasmuch as the shares were currently fully convertible at the option of the holder, it was feared that the trading price of the stock could be destabilized in the event that large numbers of preferred shares were converted and subsequently sold on the open market. With today's announcement, the probability of such an occurrence has been minimized substantially.

Bertram Remley, Secretary/Treasurer commented, "Today's approval by the Preferred "B" shareholders represents a very important element of our plan to restructure the capitalization of Struthers, Inc. At the same time it represents a major sacrifice on the part of our Preferred "B" shareholders and a tremendous vote of confidence in our management team, for which we are very grateful. We hope to continue to earn the trust and confidence of our shareholders in the future, even more than we have to date."

Douglas Beatty, President, stated, "We owe a debt of gratitude to our Preferred "B" shareholders - they were the ones who provided us the capital to grow our business in 2000, and they are the ones who are providing the initiative to help ensure our capital restructuring plan is a success."

Struthers, Inc. Website: http://struthers-inc.com/

SOURCE: Struthers, Inc.