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PROSPECT GROUP, RECOGNITION EQUIPMENT ANNOUNCE THE DISTRIBUTION OF REC STOCK

 PROSPECT GROUP, RECOGNITION EQUIPMENT ANNOUNCE
 THE DISTRIBUTION OF REC STOCK
 NEW YORK, April 10 /PRNewswire/ -- The Prospect Group, Inc. (NASDAQ: PROS) and Recognition Equipment Incorporated (NYSE: REC) said today that the previously announced registration statement covering 1,725,625 previously issued and outstanding shares of Recognition common stock held by Prospect was declared effective today by the Securities and Exchange Commission.
 The shares, which represent approximately 14.5 percent of Recognition's common stock outstanding, will be distributed on May 11 to Prospect shareholders of record at the close of business on April 20. Prospect shareholders will receive .074177 shares of Recognition for each share of Prospect.
 The shares were issued to Prospect in July 1991, along with $2.1 million in cash, pursuant to an agreement under which Prospect surrendered and canceled $15.7 million principal amount of 10 percent convertible senior subordinated notes issued by Recognition to Prospect in 1990.
 The distribution by Prospect is the fifth under its plan of complete liquidation and dissolution adopted by shareholders in June 1990. Previous distributions have included shares of Illinois Central Corporation (NYSE: IC), the Forschner Group, Inc. (NASDAQ: FSNR), Sylvan Foods Holdings, Inc. (NASDAQ: SYLN) and a 1,431,800-share block of Recognition, as well as two cash distributions totalling $1.25 per Prospect share.
 Following this distribution, Prospect's principal remaining assets will be approximately $29 million in cash and 435,612 shares of Children's Discovery Centers of America, Inc. (NASDAQ: CDCRA). The company plans no further distribution in the foreseeable future.
 Recognition Equipment, headquartered in Dallas, manufactures, sells and services automated work processing systems worldwide.
 -0- 4/10/92
 /CONTACT: Donald R. Dwight of Prospect Group, 203-661-8480, or Larry H. Lattig of Recognition Equipment, 214-579-6314/
 (PROS REC) CO: Prospect Group Inc.; Recognition Equipment Incorporated ST: New York IN: CPR SU:


TQ-OS -- NY053 -- 7331 04/10/92 15:32 EDT
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Publication:PR Newswire
Date:Apr 10, 1992
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