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DRS INDUSTRIES COMPLETES ACQUISITION OF FBS HOLDINGS

 NEW YORK, Dec. 31 /PRNewswire/ -- DRS Industries, Inc. (NASDAQ: DRSS and DRSSU) today announced that it has completed the acquisition of 79 percent of the common stock and 88 percent of the series B preferred stock of FBS Holdings, Inc., which operates and owns 100 percent of Family Bargain Center, an off-price apparel retailer headquartered in San Diego, Calif. The stock was purchased from Batra, Inc., a company affiliated with the principal stockholders of DRS.
 The acquisition was consummated after DRS obtained an independent fairness opinion. As consideration, DRS will reimburse the expenses incurred by Batra and assume Batra's obligations with respect to its acquisition of the FBS stock. Batra will also receive a newly created 8 percent convertible redeemable preferred stock of DRS. The new preferred is redeemable upon DRS meeting certain earnings and liquidity tests and is convertible after six months into common stock. Batra will also receive common stock of DRS contingent on the earnings of FBS for the 12 month periods ending April 1994 and April 1995.
 FBS has been operating under Chapter 11 of the U.S. Bankruptcy Code since July 1992 as a result of excessive leverage incurred by the previous owners of FBS, who are unaffiliated with Batra or DRS. Upon confirmation of a reorganization plan satisfactory to DRS, DRS will invest $3 million in FBS and own at least 80 percent of the common stock. Family Bargain Center presently operates 94 stores in California, Arizona, Washington, New Mexico and Oregon. Family Bargain Center generated sales of $140 million for the fiscal year ended January 1992.
 -0- 12/31/92
 /CONTACT: John A. Selzer of DRS Industries, Inc., 212-980-9670/
 (DRSS)


CO: DRS Industries, Inc.; FBS Holdings, Inc. ST: New York, California IN: REA SU: TNM

PS-OS -- NY007 -- 0858 12/31/92 10:36 EST
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Publication:PR Newswire
Date:Dec 31, 1992
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