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Newcom, Seized by Lender, Sees Delisting

May 26, 1999

Westlake Village-based Newcom Inc. said it expects to be delisted from the Nasdaq after the seizure of the computer accessory distributor's inventory by its lender, the shuttering of its headquarters and the firing of its employees.

Newcom said it hasn't sold a "material" amount of goods since January, when Deutsche Financial Services cut off Newcom's working capital line of credit. It said it failed to restructure its financing agreement with the lender, and has been unable to find new financing.

In addition to seizing its inventory, Deutsche has sued Newcom for more than $8 million in unpaid debt.

Newcom was spun off from El Segundo-based Aura Systems in 1997.

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