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Colonel's International Proposes Combination With Durakon

26 March 1998

Colonel's International Proposes Combination With Durakon

    MILAN, Mich., March 26 -- The Colonel's International, Inc.
, a manufacturer, distributor and retailer of automotive and
light truck parts and accessories, disclosed today that it had approached
Durakon Industries , one of the largest manufacturers of light
truck accessories with the idea of combining the two companies.
    According to a spokesperson for The Colonel's "the complimentary nature of
the two companies would make the entity a significant factor in serving the
fastest growing sector of the automotive industry."
    Recently published information indicates that there are more light trucks
and sports utility vehicles on the road today than passenger automobiles.
    The Colonel's, which manufacturers, distributes and retails such
accessories as truck bedliners, tonneau covers, and caps and shells, will
report revenues for 1997 of approximately $46.5 million.  It has 30 facilities
in 13 states from which it distributes to its own stores as well as other
truck accessory retail outlets.
    The Company has approximately 24 million shares outstanding and is
expected to report earnings of an estimated $0.14 a share up from $0.10 a year
earlier.
    Durakon, which is the largest manufacturer of truck bedliners and also
manufactures towing and recovery equipment had sales of approximately
$132 million through the nine months ended September 30, 1997 and earnings of
$13,000.  It has approximately 6.2 million shares outstanding.
    The Colonel's spokesperson said that "should Durakon agree with our
thinking we would then offer its shareholders one share of our stock for each
share of theirs."
    Commenting further on the proposed deal, the Colonel's spokesperson
explained that "by manufacturing, distributing and retailing ourselves we are
able to be more competitive in the marketplace, give the consumer a better
deal.
    "With our growing national retail presence, we give Durakon a lucrative
outlet for their products.
    "We also believe that the economies of scale from the combination would
make the new entity the most competitive dealer in the nation."

SOURCE  Colonel's International, Inc.