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ALLEN GROUP UPDATES ACQUISITION PROGRESS AND CHARACTERIZES SECOND QUARTER EARNINGS

 ALLEN GROUP UPDATES ACQUISITION PROGRESS AND
 CHARACTERIZES SECOND QUARTER EARNINGS
 MELVILLE, N.Y., July 14 /PRNewswire/ -- The Allen Group Inc. (NYSE: ALN) today announced that its board of directors has approved certain changes to the agreement pertaining to Allen's acquisition of Alliance Telecommunications Corporation.
 The initial purchase price has been reduced by $6 million (from $50 million to approximately $44 million) but provides Alliance shareholders the opportunity to obtain additional purchase price based on the sales performance of specified product lines of Alliance through 1994. The reduction, as well as the additional purchase price, are both to be reflected in the amount of subordinated convertible debentures to be issued. All other elements of the transaction remain basically the same. Most of the contingencies for closing have been satisfied. Alliance Telecommunications, whose sales in 1991 were $64 million, is the recognized leader in microcell products, which are expected to become a major factor in improving cellular telephone coverage and capacity.
 This transaction is still subject to the approval of a majority of the Alliance shareholders at a meeting scheduled for July 30. Holders of 89 percent of the Alliance shares have agreed to vote in favor of the acquisition. It is still anticipated that the transaction will close on or about July 31.
 At the same time, Allen characterized its second quarter earnings per common share from continuing operations as being in line with its expectations and expects them to be between $.36 and $.39 per common share, which is 20 to 30 percent above the same quarter last year. Allen expects the acquisition of Alliance not to be dilutive of earnings per common share in the second half of 1992 and to add to earnings per common share, thereafter.
 The Allen Group Inc. manufactures and markets electronic and other products, principally for the telecommunications and automotive industries, including mobile communications equipment, automotive test equipment and truck components.
 -0- 7/14/92
 /CONTACT: Robert A. Youdelman of the Allen Group, 516-293-5500/
 (ALN) CO: The Allen Group Inc.; Alliance Telecommunications Corporation ST: New York IN: CPR SU: ERP


GK-SM -- NY063 -- 9142 07/14/92 13:13 EDT
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Publication:PR Newswire
Date:Jul 14, 1992
Words:355
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