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OFFICE FURNITURE RECONDITIONER, MARKETER, GOES PUBLIC; SEEKS DIVERSITY IN MARKET THROUGH MERGERS AND ACQUISITIONS

 PHOENIX, Jan. 7 /PRNewswire/ -- Reconditioned Systems Inc. (RSI), a Tempe, Ariz.-based reconditioner and marketer of modular office work stations, panels, work surfaces, files and other systems furniture, today announced it has become the first office furniture recycling company to have its stock publicly traded.
 Two hundred fifty thousand units of the company's stock (consisting of two shares of common stock, one class A common stock purchase warrant and one class B common stock purchase warrant) are now being quoted on the NASDAQ system under the symbol "RESYU."
 Charles R. Johnson, president of RSI, said the unprecedented listing of the company's common stock "will provide us capital that will allow us to acquire large numbers of used work stations at very favorable terms to satisfy large orders, expand our product lines to additional manufacturers and provide us working capital for nationwide expansion through acquisition and merger activities."
 Founded in 1987, RSI offers a wide range of businesses a low-cost alternative to buying new office furniture by reconditioning old systems and selling them at steep discounts, generally in quantities of 30 to 40 at a time.
 The company had sales in excess of $5.5 million in fiscal 1991- 92.
 "During our first five years in business, we have concentrated on securing and restoring work stations built and marketed by the industry's leading manufacturers," Johnson said. "These companies include Haworth, Herman Miller and Steelcase Inc. -- the three companies that dominate the U.S. market for top-quality systems furniture."
 Industry experts estimate the office furniture business in 1991 generated approximately $8 billion in sales, with the reconditioned market contributing about 10 percent, or $800 million in sales. By the year 2000, authorities estimate sales to total about $10 billion, with 25 percent ($2.5 billion) going to the reconditioned market.
 Johnson is optimistic about the future of RSI. "Our long-range plans call for us to have reconditioned furniture sales in excess of $25 million by the year 2000," he said, matter-of-factly. "Our optimism is spurred by the fact that the quality and appearance of RSI's reconditioned furniture compares favorably with newly manufactured work stations."
 Funding from the recent public offering of RSI stock will be utilized for a number of purposes, Johnson said.
 Three high-priority areas are the acquisition of large quantities of work stations at attractive prices, the diversification of product lines, and the expansion of the RSI network through mergers with, or purchase of, other successful reconditioning companies.
 One of the key elements of RSI's success is the securing of used work stations from manufacturers, dealers, brokers and end-users throughout the United States at prices that allow the company to "re- sell" the units at prices substantially lower than new systems furniture.
 Johnson says "big buys are the best buys, allowing us to purchase furniture at large quantity discounts. After reconditioning takes place, the furniture will be sold to an end-user at a price 30 to 40 percent less than the cost of a new unit."
 Typically, recycled furniture is sold to young and medium-size companies that realize the benefits of systems furniture, but are unable to afford the purchase of new systems from the major manufacturers. Many of these companies will purchase reconditioned furniture in the early stages of their development and later become major contract clients for Haworth, Steelcase and other leading manufacturers.
 In its first five years of existence, RSI has had limited purchasing power, rarely acquiring more than 600 work stations in a single purchase. The infusion of capital resulting from the recent offering will allow the company to purchase larger quantities of furniture, enabling it to satisfy larger orders from its customers and to obtain more favorable purchasing terms.
 "In the past," Johnson stated, "our typical buyer has been a company looking for between 20 and 50 work stations, at an average cost between $2,000 and $3,000 per station. These companies generally do not have national purchasing contracts with one of the major systems manufacturers, so they look to us for high quality, reconditioned systems that meet their overall office needs.
 "By being able to purchase in large quantities, we will be able to meet the needs of larger clients who are in the market for recycled work stations. In very simple terms, we will be expanding our market potential by appealing to a greater number of companies who are already pre-conditioned to the advantages of recycled furniture."
 Diversification of product lines will also play an important role in the company's future, Johnson said.
 Up to now, the majority of RSI's reconditioning work has been on stations manufactured by Haworth, a high-end systems product that is utilized by many of the nation's leading corporate giants.
 "We will continue to work on the Haworth product line," Johnson said, "but we intend to expand our capabilities to include more work on stations of other manufacturers, most notably Herman Miller and Steelcase, through the acquisition of, and merger with, other reconditioning companies that specialize in these and other lines of systems furniture."
 Although the company has not yet identified any potential acquisition of merger candidates, Johnson emphasized the fact that geographic diversification will also play an important role the company's growth.
 "In order to gain the national market share that we envision," Johnson stated, "we must gain a foothold in other areas of the country, most notably the East Coast, Midwest and Pacific Coast. These markets will play an important role in expanding our acquisition of used work stations, identifying and securing potential new customers, and establishing ourselves as the recognized leader in the reconditioned office furniture field."
 As the Tempe-based firm looks to the 1990s and its early years as a publicly owned company, Johnson fully realizes reconditioned office furniture is not part of every company's long-range plans.
 "Many companies will continue to utilize the latest office systems products of Haworth, Herman Miller, Steelcase and other major manufacturers," Johnson predicted. "These companies will continue to develop state-of-the-art products that meet the needs of today's changing office environment. We, in turn, can continue supplying high-quality reconditioned products to that growing list of companies that don't have the needs, or perhaps the resources, for national purchasing contracts, but require systems furniture units that meet their day-to-day business requirements and budgetary constraints."
 -0- 1/7/93
 /CONTACT: Tony Kingsbaker of Cramer Krasselt, 602-277-0600, for Reconditioned Systems/
 (RESYU)


CO: Reconditioned Systems Inc. ST: Arizona IN: SU:

BP-JB -- LA001 -- 2516 01/07/93 09:08 EST
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Date:Jan 7, 1993
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