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MAGNA GROUP AND MGI GROUP ANNOUNCE DEFINITIVE AGREEMENT FOR THE ACQUISITION OF MGI

 ST. LOUIS, Aug. 27 /PRNewswire/ -- Magna Group, Inc. (NASDAQ-NMS: MAGI) and MGI Group, Inc. (MGI) today jointly announced that they have entered into a definitive agreement for the acquisition of MGI by Magna.
 MGI, an independent St. Louis-based financial services company with $3.5 million in revenue and client holdings in excess of $200 million, delivers non-bank financial products and services to customers through offices located in Magna banks. MGI is comprised of MGI Investments, Inc., MGI Advisory Company, Inc. and MGI Insurance Agency, Inc., and offers a range of products that includes stocks and bonds, mutual funds and annuities.
 The agreement provides for the issuance of Magna common stock with a market value of $3.8 million. The acquisition is expected to be completed by year-end 1993, and it is subject to, among other conditions, regulatory approval. Upon completion of the acquisition, MGI will become a subsidiary of Magna Bank of Missouri, and will do business in all Magna markets, including Illinois.
 "This acquisition represents an opportunity to bring MGI in-house as part of the Magna team to offer our customers 'one-stop shopping' investment opportunities through their bank," said William S. Badgley, chairman of the board and chief executive officer of Magna Group, Inc. "MGI is a profitable company with an excellent sales staff. They also have a strong management team, and we look forward to their continued leadership."
 "We have had an excellent working relationship with Magna over the past few years," said Roy W. Fischer, president of MGI Group, Inc. "This acquisition will offer increased profitability for both companies, and MGI will benefit from the cost efficiencies realized by joining a large company." Fischer will continue to serve as president of MGI post-acquisition.
 Magna also will acquire Inbank Group, Inc., the sister company of MGI Group, Inc., which provides non-bank investment products and services to customers through offices in non-Magna banks. Inbank is comprised of Inbank Investments, Inc. and Inbank Insurance Agency, Inc.
 Magna Group, Inc., with $3.6 billion in assets, is the third-largest bank holding company based in St. Louis and operates 85 community banking locations in Illinois and Missouri.
 -0- 8/27/93
 /CONTACT: Betsy Heck, 314-963-2530 or Gary Hemmer, 314-963-3016, both of Magna Group/
 (MAGI)


CO: Magna Group, Inc.; MGI Group, Inc. ST: Missouri IN: SU: TNM

SH -- NY051 -- 6725 08/27/93 15:48 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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