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Secom General Sells Certain Assets of Milford Manufacturing for $5.5 Million

19 March 1998

Secom General Sells Certain Assets of Milford Manufacturing for $5.5 Million; Also Slated to Sell Parts Machine for Over $3 Million; One-Time Restructuring Charge May Result in Fiscal Second Quarter Loss

    NOVI, Mich., March 19 -- Secom General Corporation
announced today the completion of the first step of its
business restructuring plan.  Secom's Milford Manufacturing unit has sold the
assets and business relating to the VarityKelsey-Hayes ("VKH") brake fluid
valve machining business.  Secom received $3 million in cash and was relieved
of approximately $2.5 million in liabilities in the transaction.  Secom had
acquired Milford from VKH in late 1996.
    The Milford brake fluid valve machining assets and business were sold to
PGK Acquisition Corp., a company owned by businessman Patrick Kirby.  VKH also
participated in the transaction by acquiring certain Milford fixed assets and
assuming other obligations, although VKH will not be operating the business.
    The Company said it expects within a few days to complete the second major
step of its business restructuring -- the sale of its FX 1250 parts forming
machine from its Uniflow unit.  The Company said it expects to receive $2.5
million in cash at closing and $700,000 over five years.
    "The cash received from the Milford sale and the machine sale will be used
to pay down bank debt.  Future operating results are expected to improve with
the elimination of losses experienced at the Milford unit and the continuing
investment necessary to develop business on the FX parts former," said David
J. Marczak, Secom's chief financial officer.  He added that the Company
expects to record gains on the Milford transaction and machine sale.
    "The FX sale is a major step in Uniflow's retrenchment to its core
business," said Robert A. Clemente, Secom's president and CEO.  He said that
the majority of Uniflow's consolidation plan would be implemented by June 30,
1998.
    "Uniflow will be consolidated into two of its three facilities, while
retaining over 80% of its sales base," said Clemente.  Completion of the steps
in process will result in significantly lower operating expense, while at the
same time, allowing management to focus on Uniflow's traditional press forging
and machining business, added Clemente.
    The Company also said that for its second quarter ending March 31, it
would likely report a loss after charges for one-time nonrecurring expenses.
The Company said it would record asset writedowns relating to discontinuing
various product lines in connection with its business restructuring plan.
    "These measures will improve overall production efficiencies without
impairing market share in our core business," said Clemente.  The
restructuring program and one-time charges will begin to show positive effects
in the coming months, said Marczak.
    Secom is a leading supplier of various metal parts and tooling for
primarily the automotive and trucking industries.  Secom operates in two
business segments:  metal parts forming and tooling for the cold/hot forming
industry.  Sales and manufacturing are completed through four subsidiaries
located in the metropolitan Detroit area.

SOURCE  Secom General Corporation