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MICROPROSE ANNOUNCES PRELIMINARY AGREEMENT

 HUNT VALLEY, Md., June 8 /PRNewswire/ -- MicroProse, Inc. (NASDAQ: MPRS) today announced preliminary agreement on a term sheet with institutional investors, but added that its financial situation remains unresolved. The company last week announced substantial estimated losses for fiscal 1993 and loan defaults asserted by its principal bank lenders.
 The term sheet, which is non-binding, contemplates a possible investment of $8 million or more in 8 percent subordinated notes due in 1998, convertible into common stock at the lower of $3 per share or the average of the closing bid prices of the common stock for the ten trading days commencing on June 11, 1993. The investors would also receive warrants for at least 1,333,333 shares exercisable at a price per share of 150 percent of the conversion price of the notes. The proposal includes a search for a new chief executive officer. Through arrangements with company's principal stockholder, J.W Stealey, and the right to nominate a majority of the board of directors, the investors may collectively have the ability to control the company. Consummation would require favorable resolution of issues with the lenders and other parties, execution of a definitive agreement and other conditions.
 The company depends on forbearance and further advances from its lenders for cash to fund current operations. The company has reached a preliminary agreement with its domestic lender to forbear temporarily and to fund certain current operating expenses of the company.
 The company cannot predict whether or when it may successfully complete a financing transaction.
 -0- 6/8/93
 /CONTACT: Ronald J. Bueche, vice president, chief financial officer, 410-771-6718 or fax, 410-785-8963, or Gerald R. Blair, vice president, marketing, 410-771-6720 or fax, 410-785-8963, both of MicroProse/
 (MPRS)


CO: MicroProse, Inc. ST: Maryland IN: CPR SU:

TM-WB -- NY085 -- 6739 06/08/93 17:26 EDT
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Publication:PR Newswire
Date:Jun 8, 1993
Words:302
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