American Recreation Centers receives cash offer of $7.50 per share from Fulcrum Capital Partners.

PROVIDENCE, R.I.--(BUSINESS WIRE)--March 15, 1995--Fulcrum Capital Partners, a Providence-based investment partnership with interests in the direct marketing industry, announced today that it has asked American Recreation Centers Inc.'s (NASDAQ:AMRC) board to consider its all cash offer to acquire American Recreation Centers Inc. in a transaction valued at $37.6 million.

The offer from Fulcrum Capital Partners came in the form of a letter to AMRC's board dated March 10, 1995.

The majority of AMRC's revenues are derived from its investment in 62.5 percent of The Right Start (NASDAQ:RTST), a cataloger and retailer of children's products. AMRC also operates 39 bowling centers that are principally located in California.

In making its offer, Michael G. Lederman, the managing partner of Fulcrum Capital Partners, stated, "We made this cash offer because AMRC's board has recently embarked upon a course of organic change within the company. An alternative being seriously considered by the board is to bust-up the company by selling off RTST at a price near its historical low. We have been led to believe that AMRC's management is also considering bringing the bowling business private after RTST is sold. AMRC's process smacks of a degree of entrenchment and self-interest that we as investors owning nearly 250,000 AMRC shares, cannot tolerate and will vigorously oppose."

Lederman added that, "Fulcrum Capital Partners' offer which equals $7.50 per AMRC share is a direct alternative to a course apparently being undertaken by AMRC's board, and this offer could be increased materially should due diligence indicate a higher value."

Lederman, who was instrumental in bringing Sunbeam-Oster (NYSE:SOC) out of bankruptcy and returning it to financial health as a public company, has long been a proactive investor in brand name companies.

CONTACT: Jaffoni & Collins Inc. New York 

Joseph N. Jaffoni or David C. Collins, 212/505-3015