TECHNOLOGY - Dec. 3, 1994

Compaq Rejects Power Supply Products: Simi Valley-based Golden Systems Inc. announced that Compaq Computer Corp., citing quality concerns, has rejected about $5 million of goods delivered by Golden Systems during the last six months and has ordered a halt in production of additional units of the affected model. Compaq is Golden Systems’ largest customer, representing more than 70% of its power supply sales during this year. As a consequence of Compaq’s action, Golden Systems is in default under the terms of its lines of bank credit and is implementing emergency cost reduction measures to conserve its cash. Golden Systems’ stock closed unchanged at $1.25 on Nasdaq before the news was announced.