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IONICS AGREES TO PURCHASE NOTE AND PREFERRED STOCK OF AQUA COOL ENTERPRISES, INC. FOR $8.25 MILLION

 WATERTOWN, Mass., May 5 /PRNewswire/ -- Ionics, Incorporated (NYSE: ION) announced today that it will pay $8.25 million to purchase the outstanding senior note and preferred stock of Aqua Cool Enterprises, Inc. (ACE).
 ACE is an independently owned distributor of Aqua Cool(R) Pure Bottled Water which serves eight metropolitan areas in the Northeast. Aqua Cool Pure Bottled Water is produced and bottled by Ionics.
 Ionics currently holds an option, exercisable until June 30, 1996, to acquire the $12.5 million ACE note and preferred stock for a formula purchase price, based on the performance of ACE, estimated to be in the range of $13 million to $16 million.
 The discount received by Ionics reflects Ionics' agreement to accelerate exercise of the option and to complete the transaction approximately three years sooner than permitted under the existing agreement.
 Upon completion of the purchase of the notes and preferred stock of ACE, Ionics intends to promptly exercise an option to acquire ACE by purchasing its outstanding common stock.
 Commenting on the prospective acquisition of ACE, Arthur L. Goldstein, Ionics' Chairman and Chief Executive Officer, noted that "We are very pleased to have this opportunity to acquire ACE on favorable terms. We are also pleased that this opportunity has come at a time when we are seeing steady improvement in our existing U.S. bottled water business."
 Ionics is a separations technology company involved worldwide in the manufacture and sale of membranes and related equipment for the purification of water, in the supply of purified water and water treatment chemicals, and in the sale of bottled water and home water purifiers.
 -0- 5/5/93
 /CONTACT: T.G. Papastavros or A.T. Coughlin of Ionics, 617-926-2500/
 (ION)


CO: Ionics, Inc. ST: Massachusetts IN: SU:

DD -- NE008 -- 4839 05/05/93 11:38 EDT
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Publication:PR Newswire
Date:May 5, 1993
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