PRESS RELEASE
Published on June 16, 2003
NEWS RELEASE
FOUNDATION GROWTH INVESTMENTS RESPONDS TO EXEGENICS' BOARD OF DIRECTORS MEASURES
DESIGNED TO ENTRENCH MANAGEMENT
CHICAGO, Illinois, June 13, 2003 - Foundation Growth Investments expressed its
disappointment that the board of directors of eXegenics Inc. (NasdaqSC: EXEG)
has adopted a number of measures designed to prevent its own stockholders from
selling their stock in the all-cash tender offer, while at the same time
spending enormous amounts of the company's money in order to further entrench
themselves.
Timothy Leonard, President of EI Acquisition Inc., made the following statement
today:
"It is evident from eXegenics' board's refusal to recommend our all-cash offer
and blatant attempts to impede stockholder democracy, that eXegenics' board is
not seriously committed to realizing stockholder value.
Our tender offer price is $0.40 per share in cash. Such price takes into account
the potential contingent liabilities facing eXegenics and other factors,
including the costs management is incurring to further entrench themselves.
eXegenics' recommendation to its stockholders filed with the SEC yesterday
contains many glaring inaccuracies. Among its many problems, the Schedule 14D-9
filed by eXegenics yesterday lists the wrong number of shares of common stock
that are outstanding, identifies the wrong market on which the common stock
trades, incorrectly asserts that its quarterly financials are audited, and
grossly inflates the value of its assets on a per share basis by ignoring the
significant liabilities and commitments management has incurred solely to enrich
and protect itself. eXegenics' position that stockholders should not tender is
based on, among other things, a financial opinion that is not independent and
that explicitly ignores all contingent liabilities and existing litigation
against eXegenics.
eXegenics' management makes much of the "market price" of its stock in its
filing. What management does not state is that the market for its recently
volatile stock is highly illiquid and that Nasdaq will cease quoting its stock
in five weeks.
Prior to May 29, management's most consistent achievement was its ability to
deplete the company's resources. Since May 29, management has demonstrated a
zeal in thwarting stockholder value: the eXegenics board has adopted numerous
measures in an attempt to prevent stockholders from selling their shares in the
tender offer and to entrench management.
As we state in our Offer to Purchase, our cash offer price is $0.40 per share."
NOTICE FOR EXEGENICS STOCKHOLDERS
The complete terms and conditions of the offer are set forth in an offer to
purchase, letter of transmittal and other related materials which have been
filed with the Securities and Exchange Commission on May 29, 2003 and
distributed to eXegenics stockholders. eXegenics stockholders and other
interested parties are urged to read the tender offer documents because they
will contain important information. Investors will be able to receive such
documents free of charge at the SEC's web site, www.sec.gov, or by contacting
Morrow & Co., Inc., the Information Agent for the transaction, at (800)
607-0088.
THIS ANNOUNCEMENT IS NEITHER AN OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER
TO SELL SHARES OF EXEGENICS INC.