Banner Aerospace Acquires P B Herndon Company, A $20 Million Specialty Fastener Distributor.

WASHINGTON, DC--(BUSINESS WIRE)--Jan. 16, 1996--Banner Aerospace, Inc. (NYSE: BAR) announced today the purchase of P B Herndon Company, a specialty fastener distributor to the aerospace industry, for an undisclosed amount of cash. P B Herndon, with $20 million in annualized sales operating out of St. Louis, Missouri, will join Banner's hardware group.

P B Herndon distributes its specialty fastener lines and other aerospace related components to the commercial and military aerospace industries, the US Government and direct to original equipment manufacturers.

Warren D. Persavich, Banner's chief financial officer, said, "This is a strategic acquisition complementing our already strong fastener group and dovetails into our overall business plan of growth through acquisitions and increased sales. P B Herndon will enhance our position as a single-source, low-cost provider to the aerospace industry. The acquisition also conforms to our strategy of purchasing only strategically, well-positioned aviation companies that are synergistic to Banner's existing business lines and have demonstrated market leadership and a pattern of sustained growth. We believe these moves will accelerate Banner's overall position in the marketplace."

Jeffrey J. Steiner, chief executive officer, added, "This acquisition will further strengthen Banner's hardware business which is already the world-wide leader in hardware distribution in the aviation industry."

P B Herndon will continue to be directed by its current management team of Scott Herndon, chief executive officer, and Craig Herndon, president.

The purchase of P B Herndon comes about nine months after Banner acquired Harco, Inc., a $40 million specialty fastener distributor in El Segundo, California.

Banner Aerospace is a $400 million diversified family of companies providing the aviation community with reliable, single-source solutions through a global distribution network delivering hardware, rotables, and engines to the original equipment manufacturers and aftermarkets in the commercial, regional and corporate sectors of the aviation industry.

CONTACT: Pat Wegman

Cronin and Company

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Warren D. Persavich

Chief Financial Officer

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