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KAZARIAN ASSERTS RIGHTS AS CHAIRMAN OF BOARD OF SUNBEAM-OSTER

 PROVIDENCE, R.I., March 30 /PRNewswire/ -- Industrialist/Financier Paul B. Kazarian today filed an action against two of the investment partners in Sunbeam-Oster Equities -- the major shareholder of Sunbeam-Oster Company, Inc. Kazarian is asserting his rights as chairman of the board of Sunbeam-Oster and as general partner of Sunbeam-Oster Equities. Kazarian is widely credited with leading the turn-around of the now burgeoning billion-dollar corporation.
 In an action filed in the Delaware Court of Chancery, Kazarian called for court-directed affirmation of his rights. the complaint specifies:
 -- The investment partners -- Mutual Shares funds and Steinhardt group of funds and partnerships -- "orchestrat(ed) Kazarian's termination" as Sunbeam-Oster chairman in January in a scheme designed to further their efforts to cash in early on their highly profitable investment and deprive him of rightful future gains.
 -- The partners' scheme to remove Kazarian included conspiring with leaders of "a small group of executives who did not have their contracts renewed because of their performance ... and several other executives ... about to be replaced." The contrived discontent among these employees was used as a smokescreen to mask the partners' real motives.
 -- Under a 1990 agreement with the two partners, Kazarian has beneficial rights over approximately 77 percent of the stock in Sunbeam-Oster at least until September, 1995, and to be chairman and one of three members of the company's Executive Committee.
 The complaint said that despite the company's spectacular performance under Kazarian's leadership, (the two partners) devised a scheme to oust Kazarian from his positions within the company and, particularly, to deprive him of the important rights granted to him under the 1990 Agreement.
 For the past year, (the two partners) have pressured Kazarian to allow distribution of their Sunbeam-Oster stock giving them windfall profits at Kazarian's expense, the complaint said.
 "As part of their scheme, (the partners) have sought to expose Kazarian to public humiliation through the media.
 "We are concerned with the welfare of our almost 10,000 employees, our customers, and our shareholders -- all who have benefited so greatly in the turn-around of this company.
 "Greed and self-preservation of mediocrity are hallmarks of decline in American industry," Kazarian said. "Sunbeam-Oster's success in the middle of a recession should not become a victim of the bad habits of the past."
 Kazarian and the investment group bought out for an initial investment of $130 million in 1990 the remaining assets of bankrupt Allegheny International and formed Sunbeam-Oster. That investment based on recent stock price is now worth more than $1.2 billion.
 Under Kazarian's leadership, Sunbeam-Oster's operating income has increased from a $95.3 million loss in 1990 to a profit of $123.4 million in 1992. Ongoing sales in the same period increased from $824 million to $967.2 million.
 -0- 3/30/93
 /CONTACT: Richard E. Nicolazzo of Nicolazzo & Associates, 617-227-4150 (day) or 617-720-4782 (evening)for Paul B. Kazarian/
 (SOC)


CO: Sunbeam-Oster Company ST: Rhode Island IN: FOD SU:

TM -- NE017 -- 1191 03/30/93 16:18 EST
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Publication:PR Newswire
Date:Mar 30, 1993
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