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OMNI USA RETAINS HARPER & PEARSON AS ITS NEW AUDITING FIRM

 HOUSTON, Nov. 15 /PRNewswire/ -- OMNI USA (NASDAQ: OUSA, OUSAE), designer, manufacturer and marketer of gears for agricultural and industrial equipment, today announced the appointment of Harper & Pearson Co., Houston, as its independent auditor.
 The Houston firm replaces BDO Seidman which resigned Nov. 3, 1993 over a disagreement with the company as to how to classify certain equity securities.
 Seidman, also of Houston, had served as auditor only for a short time, since June 1, 1993, taking over for Coopers & Lybrand, the company's long-time auditor which was replaced as a result of the company's relocation from Del Mar, Calif. to Houston.
 In an 8-K filing with the Securities & Exchange Commission, the company said the disagreement concerned the companies "consistent practice, in accordance with generally accepted accounting principles, to reflect equity contract notes in the equity section of the company's balance sheet. This treatment of equity contract notes has been consistently reflected in prior years' Forms 10-K and 10-Q. The company's prior accountants, Cooper & Lybrand, was in agreement with this presentation."
 The company added that it is "unaware of any changes to generally accepted accounting principles or the circumstances surrounding the equity contract notes which warrant a change in the application of accounting principles."
 The company also reported to the SEC that Coopers & Lybrand's relationship with OMNI USA was terminated "due to a move of the company's headquarters and not as a result of any disagreement on any matter of accounting principles or practices, financial statement disclosure, or auditing principles or procedure."
 The equity contract notes in question were issued to OMNI USA president Edward Daniel for assuming approximately $3 million of company debt. Daniel said all of the debt he assumed from the company has since been retired and that the company is free of all debt excepting normal trade payables.
 Daniel said that as a result of the change in auditors, the filing of the 10-K annual report with the SEC and results of the first fiscal quarter ended Sept. 30, 1993 will take place in early December.
 -0- 11/15/93
 /CONTACT: Paul Keil or Larry Gibson, 800-421-7915/
 (OUSA)


CO: OMNI USA; Harper & Pearson ST: Texas IN: SU:

NY-LM -- SD003 -- 4264 11/15/93 09:31 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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