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KAHLER RESOLVES SEC DISAGREEMENT

 ROCHESTER, Minn., Sept. 22 /PRNewswire/ -- Kahler Corporation (NASDAQ: KHLR) announced today that it has settled a long-standing accounting disagreement with the Securities and Exchange Commission (SEC).
 In late 1987, Kahler acquired the University Park Hotel in Salt Lake City, Utah. Kahler anticipated selling the hotel and retaining a management contract. During 1988 and 1989, while Kahler endeavored to sell the hotel, Kahler capitalized approximately $2,300,000 of the hotel's operating losses. In 1990 and thereafter, Kahler included the hotel's operating results in Kahler's operating statements. In mid- 1990, Kahler sold the hotel to an independent investor and retained a management contract. Kahler's independent auditors concurred with this accounting; the SEC disagreed.
 The SEC's inquiry began in 1989. In order to resolve this issue and other questions, the SEC has entered into an agreement requiring Kahler and two of its officers to comply with SEC rules and regulations. Kahler and two of its officers have agreed without admitting any wrongdoing.
 As part of this agreement, Kahler will restate its financial statements. The result will be that the asset value of the University Park Hotel be reduced by the amount capitalized in 1988 and 1989. This reduction in asset value will result in reduced depreciation expense for the years subsequent to 1989. Kahler does not expect the restatement to have a material impact on 1993 earnings.
 -0- 9/22/93
 /CONTACT: Mary Farrell of Kahler Corporation, 507-285-2707/
 (KHLR)


CO: Kahler Corporation ST: Minnesota IN: LEI SU:

AL-DS -- MN016 -- 4778 09/22/93 14:38 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
Words:254
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