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GALAGRAPH REPORTS ACQUISITION

 GALAGRAPH REPORTS ACQUISITION
 TEL AVIV, Israel, Feb. 11 /PRNewswire/ -- Galagraph Limited,


(NASDAQ: units-GALUF, shares-GALAF; Bulletin Boards warrants-GALWF) announced today that it has reached an agreement with TAT-Aero Equipment Industries Ltd., the company's principal stockholder, pursuant to which Galagraph has acquired TAT's Heat Exchanger and Electronics Heat Dissipation Equipment Division.
 The division owns and utilizes advanced technical capabilities with state-of-the art technology in the development and production of compact and sophisticated heat exchangers primarily for the aerospace industry (commercial and military), and advanced heat removal and dissipation equipment for electronics hardware (both airborne and groundbase), such as radars, avionics, EW (electronic warfare), FLIRs (Forward Looking Infra-Red) and pods.
 Pursuant to the terms of this agreement, Galagraph has acquired all of the assets, inventory and operations of the division, including product lines, manufacturing licenses and know-how, as well as goodwill, inventories, tooling, equipment, customer orders, backlog, buildings, vehicles, realty and all other assets directly or indirectly related to the division. The acquisition is effective as of Dec. 31, 1991. As part of this agreement, 38 TAT employees transferred to Galagraph.
 The appraised value of the division as of Dec. 31, 1991, is $4 million, not including inventories and tooling in production process as of Dec. 31, 1991.
 As consideration for the acquisition, Galagraph has agreed to issue to TAT 4,670,000 unregistered ordinary shares valued at 75 cents per share, for an aggregate purchase price for such assets of $3,502,500.
 In addition, subject to the audit of financial statements of the division for the year ended Dec. 31, 1991, TAT will loan to Galagraph $497,500 plus the audited value of the inventory and tools in production process, at an interest rate of 1.5 percent above the LIBOR rate. The loan can be converted by TAT at $1.00 per share until Dec. 31, 1994.
 As a result of this transaction, TAT's equity ownership in Galagraph will increase from 64.61 percent to 75.52 percent.
 This transaction will raise the equity on a pro forma unaudited basis of Galagraph, as of Dec. 31, 1991, to $1.3 million, with total assets in excess of $3.8 million. The pro forma unaudited net profit of Galagraph as of Dec. 31, 1991, will be approximately $698,000.
 Galagraph designs and develops high-performance, high-resolution graphics controllers. The products are integrated as add-on systems in XT, AT, MCA and EIBA PC platforms.
 Galagraph's products are designed to provide high-resolution graphics performance and speed, allowing PCs to be used as multipurpose graphics work stations for CAD, CAM, DTP and OEM applications.
 Galagraph is now in an intensive development process for a special design of graphics and imaging systems (hardware and software) for certain major Israeli OEM customers.
 Galagraph also designs and develops graphics integrated with video and video digitization controllers for the same platforms. These products are used especially in OEM applications.
 Galagraph is involved in the development of special real-time display recording, simulation and test systems as a subcontractor of certain Israeli industries as well as military measurement systems and automotive fleet control systems for "Dan," one of the largest public transportation companies in Israel.
 -0- 2/11/92
 /CONTACT: Shlomo Ostersetzer, chairman of Galagraph, in Israel, 972-3-455-565/
 (GALAF) CO: Galagraph Limited; TAT-Aero Equipment Industries Ltd. ST: IN: CPR SU: TNM


GK-SM -- NY048 -- 8848 02/11/92 13:49 EST
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Publication:PR Newswire
Date:Feb 11, 1992
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