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MEDIQ SUBSIDIARY, PCI SERVICES, INITIAL PUBLIC OFFERING ANNOUNCED

 MEDIQ SUBSIDIARY, PCI SERVICES, INITIAL PUBLIC OFFERING ANNOUNCED
 PENNSAUKEN, N.J., Jan. 28 /PRNewswire/ -- MEDIQ Incorporated (AMEX: MED) announced today that its wholly owned subsidiary, PCI Services, Inc. (NASDAQ: PCIS), a leading provider of pharmaceutical packaging services, in an initial public offering, sold 2,875,000 shares of common stock at $10 per share.
 The firm offering, underwritten by Smith Barney, Harris Upham & Co. and Dillon, Read & Co., Inc. commenced Jan. 28, 1992.
 As a result of this offering, MEDIQ will report a net gain of approximately $8.4 million or $.36 per share in the second fiscal quarter ending March 31, 1992. In addition, MEDIQ will receive approximately $19 million in cash which will be used to reduce long-term senior debt. Exercise by the underwriters of a 15 percent over- allotment option could result in additional proceeds to MEDIQ of up to approximately $2.1 million and additional net gain of up to $1.2 million.
 If the underwriters' over-allotment option is exercised in full, MEDIQ will continue to own 46.5 percent of PCI Services, Inc. common stock with a market value of approximately $30 million.
 Bernard J. Korman, president and chief executive officer, described the PCI Services, Inc. stock offering, as another significant step in the implementation of MEDIQ's strategic plan to reshape the company, more narrowly focus its activities, reduce debt and enhance shareholder value.
 On Aug. 15, 1991, MEDIQ and its then majority-owned subsidiary, NutraMax Products, Inc. (NASDAQ: NMPC), in a public offering, sold 2,600,000 shares of NutraMax common stock. MEDIQ continues to own approximately 50 percent of NutraMax with a present market value of $38 million.
 On June 7, 1991, MEDIQ sold Copelco Financial Services Group, Inc. for $66.5 million using the cash proceeds of $62 million to eliminate all short-term debt.
 MEDIQ provides products and services to hospitals, nursing homes, healthcare professionals and consumers. MEDIQ's common stock (MED), preferred stock (MED.pr) and convertible debentures (MED.C) trade on the American Stock Exchange. ------
 PCI Services, Inc. (NASDAQ-NMS: PCIS) announced today that the Securities and Exchange Commission had declared effective the registration statement relating to its initial public offering at a price of $10 per share of 2,875,000 shares of common stock, with a 15 percent over-allotment allocation.
 This firm offering, underwritten by a syndicate of underwriters led by Smith Barney, Harris Upham & Co., Incorporated, and Dillon, Read & Co. Inc., commenced on Tuesday, Jan. 28, 1992.
 PCI Services is a leading provider of pharmaceutical packaging services.
 /delval/
 -0- 1/28/92
 /CONTACT: Michael F. Sandler, senior vp-finance of MEDIQ, and vp and chief financial officer of PCI Services, 609-665-9300, ext. 6005/
 (MED NMPC PCIS) CO: MEDIQ Incorporated; PCI Services, Inc.; NutraMax Products, Inc. ST: New Jersey IN: SU: OFR


CC-JS -- PH014 -- 4227 01/28/92 12:05 EST
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Publication:PR Newswire
Date:Jan 28, 1992
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