EVANSTON, Ill., Aug. 30 /PRNewswire-FirstCall/ --
Northfield Laboratories Inc. (Nasdaq: NFLD), a leading developer of an oxygen-
carrying blood substitute for trauma and elective surgery situations, today
issued the following statement in response to recent misstatements made by
dissident shareholder C. Robert Coates:
"In recent weeks, Mr. Coates has issued a series of press releases and
announcements in which he has made what we believe are a number of baseless
and harmful allegations. We understand that Mr. Coates is entitled to voice
his opinions, even if we disagree with them. We feel strongly, however, that
he has no right to solicit shareholder votes based on unsubstantiated claims
and false allegations.
We particularly object to the following statements made by Mr. Coates:
-- He claims that in 1997 Northfield "reportedly" refused a buyout offer
from an unnamed pharmaceutical company at a price "rumored" to exceed
$30 per share. This statement is completely false. Northfield has
never received or rejected an offer of this type from any
pharmaceutical company or other potential buyer.
-- He alleges that our "manufacturing operating procedures appear not to
be in compliance" with FDA requirements. This allegation has no basis
in fact. Northfield's manufacturing operations are conducted in
compliance with applicable FDA requirements. We have never received any
complaint, from the FDA or any other source, regarding our
manufacturing operations.
-- Mr. Coates has claimed that Northfield's independent nominating
committee "refused to discuss" his credentials or to meet with his
other board nominee. In fact, he met by phone with the members of our
nominating committee and discussed his qualifications and reasons for
seeking nomination as a director. Mr. Williams, his other board
nominee, didn't even bother to respond to our offer to discuss his
qualifications with Northfield's nominating committee.
Unfortunately, Mr. Coates has a long track record of making claims that
are unsupported by the facts. When he first threatened Northfield with a
proxy contest two years ago, he filed reports with the SEC in which he falsely
claimed that his tax consulting company, Management Insights, was a "venture
capital and investment firm" that acted as "fund manager" to "ProxyCapital LP,
a value-oriented hedge fund." The SEC forced him to retract these statements
when it became apparent they were complete fabrications -- public records
showed that his supposed "hedge fund" never even existed.
Mr. Coates appears prepared to say anything, true or not, to garner votes.
He has argued that Northfield shareholders would be in a "no-lose" situation
if we were to expand the size of our board to accommodate Mr. Coates and his
director nominee.
Contrary to his assertions, we think that the Coates/Williams slate
presents a "lose-lose" proposition for Northfield shareholders. Ask yourself
what is the value of expanding a board only to add directors who are so
apparently lacking in the necessary qualifications and experience to
effectively serve Northfield shareholders. We believe that Mr. Coates' recent
disruptive behavior -- including his numerous unfounded allegations and false
and misleading statements -- has demonstrated that his election as a director
would not be in the best interests of Northfield's shareholders.
The annual meeting of shareholders is only two weeks away and each vote is
important. Northfield urges it shareholders to act today to protect the value
of their investment by signing, dating and returning the BLUE proxy card
today."
Statements in this release that are not strictly historical are
"forward-looking" statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks, which may cause
the company's actual results in the future to differ materially from expected
results. These risks include, among others: competition from other blood
substitute products; the company's ability to obtain regulatory approval to
market PolyHeme commercially; the company's and/or its representative's
ability to successfully market and sell PolyHeme; the company's ability to
manufacture PolyHeme in sufficient quantities; the company's ability to obtain
an adequate supply of raw materials; the company's ability to maintain
intellectual property protection for its proprietary product and to defend its
existing intellectual property rights from challenges by third parties; the
availability of capital to finance planned growth; and the extent to which the
hospitals and physicians using PolyHeme are able to obtain third-party
reimbursement, as described in the company's filings with the Securities and
Exchange Commission.
Visit the Northfield website at: http://www.northfieldlabs.com .
SOURCE Northfield Laboratories Inc.
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Related links:
http://www.northfieldlabs.com
CONTACT:
Steven A. Gould, M.D., Chief Executive
Officer of Northfield Laboratories, +1-847-864-3500, or
Investors, Lisa Fortuna, +1-312-640-6779, or Media, Cindy Martin,
+1-312-640-6741, both of FRB Weber Shandwick
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