Deal Rescinded After Hepatitis Outbreak

Epitope Inc. said it agreed with the former owners of Andrew & Williamson Sales Co. to rescind Epitope’s December 1996 acquisition of the San Diego fruit processor. A&W;’s former owners will return all 520,000 shares of Epitope common stock in exchange for the A&W; common stock Epitope received in the transaction. Two of the former owners will operate A&W;’s business. Also, Beaverton, Ore.-based Epitope, A&W; and the former A&W; owners will release one another from liabilities arising from events that predated the undoing of the deal. Included would be problems arising from A&W;’s handling of Mexican strawberries, fraudulently sold as U.S.-grown to the federal school lunch program. The berries, sliced and frozen at A&W;, have been linked to a recent outbreak of hepatitis A. “Recent events have convinced us that A&W; is no longer a suitable distribution arm for the fruit and vegetable products we are developing,” said Epitope Chief Executive Adolph J. Ferro.