Integrated Security Systems Inc. announces that it plans to submit to stockholders for approval a financial restructuring plan. The company’s largest stockholders, Renaissance Capital Growth & Income Fund III Inc. and Renaissance US Growth and Income Trust PLC, have agreed to exchange all their convertible debentures, convertible notes, notes, and accrued interest into a new class of preferred stock. These same stockholders have agreed to advance a combined $1 million in notes to the company in a private placement. The effect of the proposal would be: 1) elimination of debt, debt service requirements and debt covenants to improve operating flexibility; 2) minimum of a $1 million cash infusion; and 3) common stockholders, other than Renaissance, would be diluted.

“The board of directors has considered numerous financing alternatives during the past six months,” says C. A. Rundell Jr., chairman and CEO. “None was as attractive, or presented the same opportunity for intermediate term recovery for the shareholders as this recommended restructuring.” Integrated Security Systems is a high technology company that designs, develops and markets security software to the commercial, industrial and governmental marketplaces.

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