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MEI DIVERSIFIED ANNOUNCEMENT

 MINNEAPOLIS, April 23 /PRNewswire/ -- MEI Diversified, Inc. announced today that it executed financing documents on April 23, 1993 with LaSalle National Bank, Chicago, for a $10 million debtor-in- possession loan facility. The transaction was pre-approved by the United States Bankruptcy Court on April 16, 1993.
 In connection with this financing, MEI repaid in full the principal and accrued interest of the $3 million emergency interim financing that was provided to MEI by Carl R. Pohlad, chairman of MEI, in early March, 1993. Pohlad has personally guaranteed $3 million of the new LaSalle facility.
 "In our view, completion of this transaction serves two main functions," said Gary L. Hollister, MEI Salon Corp. president and chief executive officer. "It provides us with the flexibility we need to implement our reorganization plan, and it reflects confidence in our ability to turn the business around."
 MEI's principal operating subsidiaries include its majority owned beauty salon business, MEI Salons, which owns Essanelle Salon Co., Maxim's Beauty Salons, Inc. and The Glemby Company, Inc. The three subsidiaries operate professional beauty salons in the United States and Canada, principally in licensed premises in major department stores and other mass merchandisers. Only the United States salon operations, encompassing approximately 1,550 salons, are included in MEI Salons and its subsidiaries Chapter 11 filing. In addition, MEI's other principal business segment, NDM Acquisition Corp., a medical products company, is not included in the Chapter 11 filing.
 MEI entered the department store beauty salon business in 1990 through the acquisition of the three principal beauty salon chains in affiliation with Regis Corporation which operated two of the department store beauty salon companies. MEI said its bankruptcy filings are substantially the result of unprofitable operating results from these acquired salons.
 -0- 4/23/93
 /CONTACT: James A. Cesario, vice president-controller, MEI Diversified, 612-339-8853; or Gary L. Hollister, president, MEI Salon Corp., 612-936-4301/


CO: MEI Diversified Inc. ST: Minnesota IN: SU: FNC

KH -- MN012 -- 0111 04/23/93 13:31 EDT
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Date:Apr 23, 1993
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