Veritec Reconverted to Chapter 11

GOLDEN VALLEY, Minn., March 9 /PRNewswire-FirstCall/ -- Veritec, Inc. , a Golden Valley, Minnesota, based developer and provider of high data density bar coding for the manufacturing and security industries, was granted its motion by the Bankruptcy Court to reconvert from chapter 7 to chapter 11. Veritec reached agreements with its largest creditors, principally Mitsubishi Corporation and requested that its bankruptcy case be reconverted to chapter 11 to allow presentation of a new plan of reorganization to creditors. The new plan must be confirmed by May 15. It is expected that all creditors other than those with whom Veritec has agreements will be paid in full.

"We are pleased to reach the settlement with Mitsubishi and appreciate their support to make our motion acceptable to the trustee and the Court," said Veritec CEO, Van Tran.

Veritec, a publicly traded company under the symbol VRTC, is a pioneer in two dimensional bar code technology and related software applications.

Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties readers are urged to consider statements labeled with the terms "believes," "belief," "intends," "anticipates," or "plans" to be uncertain and forward looking. The forward- looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.

For further information, contact: Van Tran Veritec, Inc. 2445 Winnetka Ave. N. Golden Valley, MN 55427 U.S.A. [phone] - Phone [phone] - Fax http://www.veritecinc.com/