Wynnefield Capital requests more information from White Electronic Designs

By Lisa Kerner

Charlotte, N.C., Oct. 20 - White Electronic Designs Corp. shareholder Wynnefield Capital, Inc. named several concerns it still has with the company in an Oct. 16 letter to White Electronic's board of directors.

According to Wynnefield, White Electronic failed to address these concerns in a recent news release.

In the Oct. 16 letter, Wynnefield requested that:

• White Electronic's strategic committee complete its analysis and publicly present its recommendations to the board and the shareholders by Dec. 1;

• The board wait to find a new chief executive officer until after the strategic committee has fulfilled its mandate and publicly presented its recommendations; and

• The board immediately appoint Brian Kahn of Kahn Capital Management LLC as a director to fill the vacancy on the board and to also be a member of White Electronic's strategic review committee.

White Electronic recently announced it will operate exclusively as a defense electronics manufacturer and supplier following the disposal of its display systems division.

The division is a Hillsboro, Ore., supplier of enhanced flat panel display systems.

It was previously reported that White Electronic's board formed a special committee in August comprised of two of the company's independent directors, Paul Quadros and Thomas Toy.

In a Sept. 29 letter to White Electronic, Wynnefield, a 5.8% shareholder, asked the company's board to provide specifics regarding its process to review strategic alternatives.

Wynnefield also asked for the names of strategic review committee members, the committee's responsibilities and the identity of any financial advisers assisting the committee.

White Electronic is a Phoenix-based manufacturer of microelectronic and display components and systems.

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