Trans-Lux responds to shareholder, justifies sale of entertainment division

By Lisa Kerner

Charlotte, N.C., July 16 - Trans-Lux Corp., in response to a letter from Gamco Investors, Inc., said it retained Jesup & Lamont Securities Corp. as its financial adviser to seek out potential buyers for the company's entertainment division and that the price negotiated with Marwit Capital was the best one obtainable.

The cinema operator previously announced that it would sell its entertainment division to Marwit Capital for $24.5 million including debt.

Trans-Lux's entertainment division operates 10 theaters and 69 screens in New Mexico, Colorado, Arizona and Wyoming.

Gamco was also advised that not all assets of the entertainment division are being sold.

In addition, Trans-Lux said two of its executive officers, Matthew Brandt and Thomas Brandt, will be employed full time by Marwit Capital and will resign as employees and officers of Trans-Lux.

An independent third party noted that the proposed sale of the theater and related assets is fair to the stockholders of Trans-Lux from a financial point of view, according to a form 8-K filed with the Securities and Exchange Commission.

Gamco recently reported a 47% ownership interest in a schedule 13D filing with the SEC.

Trans-Lux, based in Norwalk, Conn., designs, manufactures and installs large-scale indoor and outdoor LED electronic display systems for applications in the financial, banking, gaming, advertising, corporate, retail, transportation, entertainment and sports industries.

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