Danzer Corporation Continues Discussions and Reaches Tentative Agreement With Obsidian Capital Partners, Ltd.

    HAGERSTOWN, Md., April 30 Danzer Corporation
(OTC Bulletin Board: DNZR) today announced that it is continuing its
discussions and reached a tentative agreement with Obsidian Capital Partners,
L.P. and two of its principals (collectively referred to as "Obsidian") with
regard to a business combination with four entities controlled by Obsidian.
At this time, the parties expect to close the transaction in May 2001.
    Danzer and Obsidian have reached a tentative agreement whereby Danzer
would acquire from Obsidian its equity ownership in four separate operating
companies in exchange for convertible preferred stock of Danzer representing
80.12% of the issued and outstanding equity interests of Danzer on a fully
diluted and as converted basis.  Obsidian Capital Partners, L.P.,
headquartered in Indianapolis, Indiana, is a private equity leveraged buyout
fund that specializes in buying controlling positions in small companies.
    Four companies are expected to be consolidated into Danzer:  a
manufacturer of custom, high-end racecar transporters and specialty trailers;
the sole supplier of reclaimed butyl rubber to the domestic tire, tape and
tube industry in the Western Hemisphere; a leading manufacturer of specialty
racing, cargo and ATV trailers; and a leading provider of custom high-end
luxury entertainer coaches that are rented to a variety of customers in the
corporate and entertainment industries.  Obsidian purchased each of the
entities through leveraged transactions.
    Based on unaudited financial statements and estimates provided solely by
Obsidian, on a combined basis, Danzer and its new subsidiary companies would
have had approximately $66 million in gross sales, $8.1 million of adjusted
EBITDA, and $1.3 million of net income on a proforma basis for the calendar
year 2000.  Moreover, in 2001 the combined companies are anticipated to
generate over $74 million in revenue, $9.5 million in EBITDA, and over
$2.7 million in net income.
    Although a tentative agreement with regard to certain terms of the
proposed combination has been reached with Obsidian, any transaction between
Obsidian and Danzer will be subject to the negotiation, execution and delivery
of definitive documentation, the approval of Danzer's Board of Directors, the
satisfaction of any regulatory requirements, completion of the parties
respective due diligence and the obtaining of any necessary approvals from
third parties.
    None of the convertible preferred stock of Danzer proposed to be issued in
exchange for equity securities of Obsidian has been or will be registered
under the Securities Act of 1933, as amended, or the securities laws of any
state and none of such securities may be offered or sold in the United States
of America absent registration under the Securities Act of 1933, as amended,
and any applicable state securities laws or the availability of an exemption
from such registration requirements.  No assurance can be given that any
definitive agreement relating to a proposed transaction among Danzer and
Obsidian will be reached, what the material terms of any such agreement will
be, or if the transactions contemplated in any such agreement, if reached,
will ultimately be consummated.

    This press release contains "forward looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, which can be
identified by the use of forward looking terminology, such as "may," "will,"
"expect," "anticipate," "estimate," or "continue" or the use of the negative
thereof or other variations thereon or comparable terminology.  In particular,
any statement, express or implied, concerning future events is a forward
looking statement.  There can be no assurance that any expectation expressed
or implied herein will prove to be correct, or that any contemplated event or
result will occur as anticipated.  Among other factors, the uncertainties
associated with due diligence review and negotiation of definitive
documentation , the difficulties inherent in combining previously independent
businesses and the uncertainties associated with economic conditions
generally, the operations of particular businesses, and the uncertainty of
managing leveraged entities may cause actual results to differ materially from
those anticipated.

    For more information contact Mel Williams of Danzer Corporation,
301-582-0345.

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