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RYDER TO SPIN OFF AVIATION BUSINESSES

 MIAMI, June 30 /PRNewswire/ -- Ryder System, Inc. (NYSE: R) announced today that its board of directors has authorized the spin off of its aviation businesses into a new, Dallas-based public company. The spin-off will be accomplished through the distribution of all of the shares in the new company to Ryder System shareholders. The pro-rata distribution is expected to be tax free to Ryder and its shareholders.
 In announcing the decision, Ryder Chairman, President and Chief Executive Officer M. Anthony Burns said, "This action is a further step in accomplishing our vision of providing customers with the best transportation services in the world. Our highway transportation and aviation businesses operate in distinctly different markets, and they have very different market opportunities. Separating the aviation businesses from our highway transportation services will allow both companies to focus more sharply on the significant opportunities in their respective markets.
 "The spin off will signify a new beginning for each of the companies. Each of them will enjoy leadership positions in its respective markets, each will be better able to focus on its own markets and opportunities, and each will be free to increase value for shareholders by following its own strategies and approaches. We expect both companies to perform well after the separation, and we believe both our customers and our stockholders will benefit in the long run."
 Burns added that he expects the total of the dividends to be paid by Ryder and the new aviation company to equal or exceed Ryder's current dividend of $0.60 per year. He also said that he believes the spin off will improve Ryder's cost of capital and that, as a public company, the aviation businesses will have improved access to capital. He further noted that as an independent public company, the aviation businesses will have the opportunity to develop stock-based compensation programs which will be directly aligned with the new company's performance in its own markets.
 In connection with the spin off, Ryder will treat its aviation segment as a discontinued operation for financial reporting purposes and will take a restructuring charge in the second quarter of $169.4 million after tax. The charge will cover costs associated with actions to be taken to focus the aviation businesses more heavily toward the major, regional and commuter airline markets, including the planned disposition of certain businesses; a write off of goodwill associated with those dispositions; the consolidation of some aviation facilities; and costs associated with accomplishing the spin off.
 Ryder's aviation segment is, and will continue to be, the world's largest independent provider of turbine aircraft engine repair and overhaul and the world's largest distributor of aviation parts and supplies. The segment, which will be smaller and more focused after the restructuring, had revenue in 1992 of $1.2 billion and year-end 1992 assets of $1.2 billion.
 The company to be spun off will include Ryder Airline Services, Ryder Aviall, and Inventory Locator Service. Marshall B. Taylor, currently president of Ryder Airline Services, Inc., will be president and chief executive officer of the new company.
 As part of the spin off process, Ryder intends to sell Ryder Aviall's business aviation and helicopter engine repair business; Ryder Aviall's aircraft and terminal services operation at Love Field in Dallas; and Ryder Airline Services' Aviation Sales unit in Miami.
 Ryder expects to accomplish the spin off before the end of 1993. Completion of the action will require consents from Ryder's banks and institutional lenders, the arrangement of satisfactory financing for the aviation businesses, and final declaration of the distribution of the new aviation company's shares by Ryder's board of directors.
 -0- 6/30/93
 /NOTE TO EDITOR: Ryder System, Inc. is the parent of a group of companies which provide high-quality highway transportation services and aviation services. Revenue for the 12 months ended March 31, 1993 was $5.2 billion; assets at March 31, 1993 were also $5.2 billion.
 Ryder's stock is a component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index.
 CONTACT: Art Stone of Ryder System, Inc., 305-593-3180/
 (R)


CO: Ryder System, Inc. ST: Florida, Texas IN: AIR TRN SU:

AW-JB -- FL001 -- 7006 06/30/93 08:50 EDT
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Publication:PR Newswire
Date:Jun 30, 1993
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