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ADAGE AND RELM COMMUNICATIONS COMPLETE MERGER; RELM POSTS PROFITS FOR SIX MONTHS ENDED DEC. 31, 1991

 ADAGE AND RELM COMMUNICATIONS COMPLETE MERGER;
 RELM POSTS PROFITS FOR SIX MONTHS ENDED DEC. 31, 1991
 WEST CHESTER, Pa., Jan. 24 /PRNewswire/ -- Adage, Inc. (NASDAQ: ADGE) and RELM Communications, Inc. (NASDAQ: RGCY) announced today that shareholders of both companies overwhelmingly approved the merger of RELM into Adage, effective today.
 Terms of the merger called for the issuance by Adage of 1,946,183 new shares of common stock. Pursuant to the exchange ratio provided in the plan and agreement of merger, the RELM shareholders will receive 0.191 of a share of Adage for each share of RELM common stock. Following the acquisition there will be 5,290,423 Adage common shares outstanding.
 Robert H. Cahill, president and chief executive officer of Adage, commented that "we see dynamic growth ahead for RELM, due to its increasing presence in the manufacture of electronic demand side management (DSM) systems, which enable utilities to better manage residential and chemical consumption of electricity. Of RELM's $3.4 million backlog, 65 percent is in DSM products. An indication of its importance as the number two producer in this growing marketplace is the fact that Florida Power Corporation has just increased its latest order to 5,000 units per month from 4,000 per month previously.
 "The concentration of RELM's marketing, engineering and financial assets in this sector relates to an executive decision made by Fred Schwecke, who became executive vice president and chief operating officer of RELM in February 1991, prior to which he was vice president of manufacturing. Under Mr. Schwecke's guidance, RELM, which posted deficits in four of the last six years, has experienced a dramatic turnaround and is now profitable for the six months ended Dec. 31, 1991. Mr. Schwecke will remain as chief operating officer of RELM. The merger into Adage eliminates some $600,000 of annual expenses associated with RELM being a public company and, coupled with already implemented reductions in operating expenses, slimming down of unprofitable product lines and a reduction in labor costs, should produce a vigorously growing and nicely profitable electronics company. Further adding to the synergistic benefits of this merger are the savings at Adage from the planned integration of our electronic circuitry board assembly operations of our Allister Access Controls subsidiary in Hendersonville, Tenn., into RELM's 100,000-square-foot state-of-the-art manufacturing facility in Melbourne, Fla. This facility has a capacity of $100 million annually in products, giving us room not only for internal expansion, but for acquisitions of additional product lines which can be manufactured at RELM. We are currently beginning a review program of such products and companies."
 Cahill noted, "On a combined basis Adage is now running a revenue rate of $105-$110 million, a new record. We also anticipate record operating profits in 1992."
 Through various operating subsidiaries, Adage is involved in recycled paperboard and cold drawn steel, as well as electronic access control systems. Said Cahill: "Recycled paper products and sophisticated electronic equipment will remain the focus of Adage as it moves forward."
 -0- 1/24/92
 /CONTACT: Robert H. Cahill, president, or Robert T. Holland, CFO, 215-430-3900, both of Adage, or Sherry Spalter of the Wall Street Group, 212-888-4848, for Adage/
 (ADGE RGCY) CO: Adage Inc.; RELM Communications Inc. ST: Pennsylvania IN: SU: TNM


CK-TS -- NY026 -- 3212 01/24/92 10:53 EST
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Date:Jan 24, 1992
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