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SCHWINN ACCEPTS ACQUISITION OFFER, SUBJECT TO FURTHER BIDS; COURT GRANTS REQUEST FOR ACCELERATED SCHWINN AUCTION PROCESS

 CHICAGO, Jan. 7 /PRNewswire/ -- A federal bankruptcy court judge today approved the request of Schwinn Bicycle Company, its lenders and official creditors committee to accelerate the auction process currently underway. Judge Jack B. Schmetterer approved a process whereby Schwinn will be sold to the Zell-Chilmark Fund and Scott USA on Jan. 19, unless a better offer is made in the interim. Zell-Chilmark had previously made an unsolicited offer that was rejected by Schwinn.
 The process originally approved by the court on Dec. 21 contemplated sealed bids being received by Feb. 1. However, last Thursday (Dec. 31), Zell-Chilmark made an improved offer -- worth a total of more than $60 million, including forgiveness of debt -- which received the approval of Schwinn, its lenders and official creditors committee. These parties asked the court to expedite the process by eleven days to maximize the value of Schwinn's assets.
 Under the terms approved by the court today, any competing bid for Schwinn's assets must exceed the Zell-Chilmark bid by at least $4,075,000. In addition, Zell-Chilmark would receive $1.25 million as a "break-up" fee if it is not the ultimate purchaser of the company.
 Edward R. Schwinn, president and chief executive officer of Schwinn Bicycle Company, said, "Three weeks ago we didn't expect to be in this position. But Zell-Chilmark came back with a much better offer that makes sense for us. It's a great benefit to avoid a piecemeal sale of assets. It also reduces the risk considerably to have a firm offer on the table."
 Schwinn noted that since the auction process was announced, the company has been contacted by more than 500 prospective bidders. He said, "An accelerated auction process will quickly identify the serious bidders. We're pleased with the improved offer from the Zell-Chilmark group, but we are keeping the door open."
 Schwinn filed for Chapter 11 bankruptcy protection on Oct. 7.
 Established in 1895, privately held Schwinn Bicycle Company carries one of the best recognized names in the world. It distributed bicycles and fitness equipment in the United States, Canada and various overseas markets.
 -0- 1/7/93
 /CONTACT: Doug Kramer for Schwinn Bicycle Co., 312-454-7500 or 312-565-1200/


CO: Schwinn Bicycle Co., Zell-Chilmark Fund, Scott USA ST: Illinois IN: LEI SU: TNM

LD -- NY107 -- 2885 01/07/93 19:56 EST
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Date:Jan 7, 1993
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