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GRUMMAN CONTINUES DEBT REDUCTION

 /REPEATING FROM YESTERDAY FOR POINTS NEEDED/
 /NOTE TO EDITORS: The following is a revised version of NY079,


moved earlier today. Information has been added to the second paragraph, fourth line./
 BETHPAGE, N.Y., June 17 /PRNewswire/ -- Grumman Corporation (NYSE: GQ) announced today that it will redeem all of its outstanding 9-1/4 percent convertible debentures.
 On July 7, 1993, Grumman is calling $50 million of 9-1/4 percent sinking fund debentures, due Aug. 15, 2009. The redemption price is 101.85 percent of the principal amount, plus accrued interest. Alternatively, from June 18 through July 7, 1993, the debentures may be converted into shares of common stock at a conversion price of $34.75 per share. Bankers Trust Company is the agent for these transactions.
 "We continue to build our financial strength, and enhance shareholder value," said J. Robert Anderson, vice chairman and chief financial officer. "By the end of July, our total debt will be $256 million -- an impressive 72 percent drop from the first quarter of 1991, when it stood at $892 million."
 After this latest call, Grumman will have only one issue of outstanding publicly traded debt: $200 million of 10-3/8 percent notes, due 1999.
 In 1992, Grumman paid off its entire bank debt of $250 million, redeemed its $32.3 million of preferred stock, and repurchased $19.4 million of 10-1/2 percent debentures. In February 1993, the company redeemed its $75 million of 9-1/2 percent notes. In April, it redeemed the remaining $56 million of 10-1/2 percent sinking fund debentures.
 The company is buying back up to $100 million of its common stock, and, on April 15, announced a 20 percent increase in its quarterly dividend, from 25 cents to 30 cents per share.
 "We've worked hard to chip away at debt and improve our balance sheet," said Anderson. "Our interest cost this year will be below $40 million -- less than half what it was in 1991. This is a solid contribution to net income, and it puts us in the financial position to take advantage of attractive business opportunities. Our balance sheet is one of the best in the aerospace industry."
 Grumman is widely known as an international aerospace company. Other businesses range from sophisticated integrated information and electronics systems to U.S. Postal Service delivery trucks. The company employs 20,000 people. Sales were $3.5 billion in 1992.
 -0- 6/17/93 R
 /CONTACT: Robert Harwood of Grumman, 516-575-5287/
 (GQ)


CO: Grumman Corporation ST: New York IN: ARO SU:

SH -- NY079A -- 3480 06/18/93 10:07 EDT
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Publication:PR Newswire
Date:Jun 18, 1993
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