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OPTICAL RADIATION BOARD ANNOUNCES PLANNED SPIN-OFF OF OPTICAL GROUP

OPTICAL RADIATION BOARD ANNOUNCES PLANNED SPIN-OFF OF OPTICAL GROUP
 AZUSA, Calif., March 16 /PRNewswire/ -- Optical Radiation Corp. (NASDAQ: ORCO) today announced that its board of directors has approved a plan to spin off the company's Consumer Optical Group to stockholders as a free-standing, publicly traded company.
 Richard D. Wood, president of Optical Radiation, said under the plan, stockholders will receive 1 1/2 shares in the newly formed corporation for each share owned of Optical Radiation. He said the new company will be headed by William T. Sullivan, as president and chief executive officer. Sullivan is currently group vice president.
 Wood stated it is the company's intention to complete the spin-off and list the new company on the New York Stock Exchange by the close of its fiscal year, July 31, 1992. He said the plan is principally conditioned upon a favorable Internal Revenue Service ruling that the transaction will be a tax free distribution.
 The company's Consumer Optical Group, which will be renamed prior to the close of the transaction, had sales of $82 million for the fiscal year ended July 31, 1991. It is comprised of Omega Optical Co., the nation's largest processor of high quality prescription eyewear, headquartered in Dallas, with branch operations in St. Cloud, Minn., Tampa, Fla., and Portland, Ore.; the Orcolite division, based in Azusa, which manufactures a full line of hard resin and polycarbonate lens blanks and serves more than 1,000 wholesale and retail optical locations throughout the United States; and the Electroforming division, also based in Azusa, which serves the Orcolite division in the design and manufacture of tooling in addition to manufacturing metallic electroformed parts and optics for industrial customers.
 "The spin-off will permit Optical Radiation to concentrate more closely on the development of emerging medical technologies to bring new ophthalmic surgical products and procedures to the marketplace," said Wood. "It also will better allow the newly formed company to pursue the significant growth potential of the highly fragmented and rapidly growing consumer vision care market. In addition, the spin-off reflects management's and the board's objective of enhancing value for our stockholders by permitting Optical Radiation to better meet competitive challenges."
 After the spin-off, ORC will consist of two business sectors, the Ophthalmic Surgical Products (OSP) division and the Scientific and Industrial Group. The OSP division is a world leader in the design and manufacture of intraocular lenses (IOLs), which are implanted in the eye to replace the human crystalline lens that is removed during cataract surgery. The division anticipates requesting premarket approval from the U.S. Food and Drug Administration this fall on the company's MemoryLens (R) IOL. This major program for development of a small incision lens was initiated and has been under clinical studies for over five years. In addition, through the recent acquisition of Corneal Contouring Inc. the division is completing the development of a procedure for surgically correcting vision. The Scientific and Industrial Group manufactures electro-optical systems and components for the photolithographic, theater, fiber optics and specialty lighting markets.
 Optical Radiation designs and manufactures a wide range of precision optical components and systems for medical, industrial and scientific applications.
 -0- 3/16/92
 /CONTACT: Richard D. Wood of Optical Radiation Corp., 818-969-3344; or Roger S. Pondel of Rifkind Pondel & Parsons, 310-207-9300, for Optical Radiation Corp./
 (ORCO) CO: Optical Radiation Corp. ST: California IN: HEA MTC SU:


JL -- LA025 -- 8443 03/16/92 16:04 EST
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Publication:PR Newswire
Date:Mar 16, 1992
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