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REVELL-MONOGRAM, INC. ANNOUNCES RESTRUCTURING PLAN TO CONSOLIDATE OPERATIONS AND IMPROVE CUSTOMER SERVICE

 MORTON GROVE, Ill., Dec. 23 /PRNewswire/ -- Revell-Monogram, Inc. (AMEX: RVL) today announced that it will take a one-time charge to fourth quarter pre-tax earnings of $1.4 million, approximately $0.20 per share, to cover costs associated with a restructuring of U.S. operations. The restructuring plan includes a consolidation of facilities and a streamlining of manufacturing processes to further reduce inventories and operating costs. The Company's fiscal year-end is Dec. 27, 1992, and the Company anticipates releasing final results, including the effect of the restructuring charge, late in January, 1993.
 "Following an extensive study of customer service requirements, we are restructuring U.S. operations and investing in forecasting and order entry systems to better control inventories and improve order fill ratios and delivery time, and increase our flexibility to meet the needs of our customers," said Timothy J. Cawley, chief executive officer.
 "The restructuring plan is expected to result in more than $1 million in cost savings during 1993 as the plan is implemented and, when fully implemented, is expected to reduce operating expenses by as much as $4 million per year as a result of lower manufacturing, selling, and administrative costs, as well as reduced interest expense related to a projected reduction in inventory," said Theodore J. Eischeid, president.
 "We are also investing in CAD (Computer-Aided Design) systems to support our ongoing strategy of reducing new product lead times and developing high margin products that respond to changing consumer lifestyles and technology," added Eischeid.
 "A key example of our new product strategy will be unveiled in the first quarter of 1993 at The American International Toy Fair in New York and The Toy Fair in Nuremburg, Germany. Revell will introduce the first multimedia CD-ROM software product that combines animated assembly instructions for building four different model kits with a challenging and realistic road and track race where you can drive the same cars you can build. The software product will be packaged with one of the four model kits and distribution will be targeted to mass merchandisers, toy chains, hobby shops and software retailers," said Cawley.
 The Company plans to release and ship three versions of the new software product in 1993. Two releases will feature cars and one will feature aircraft.
 "This new product is revolutionary in the model kit category and represents the most significant change in model building to be introduced in the past 20 years," added Cawley.
 Revell-Monogram, Inc. is the world's largest maker of plastic model kits. The Company also designs and markets hobby accessories, high quality metal die cast vehicles and children's scientific toys.
 -0- 12/23/92
 /CONTACT: Ted Eischeid, president of Revell-Monogram, Inc., 708-966-3500; or Dawn Dover or Jim Fingeroth both of Kekst and Company, 212-593-2655, for Revell-Monogram, Inc./
 (RVL)


CO: Revell-Monogram, Inc. ST: Illinois IN: HOU SU: ERN

LR -- NY006 -- 9435 12/23/92 08:45 EST
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Publication:PR Newswire
Date:Dec 23, 1992
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