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TIE/COMMUNICATIONS, INC., SELLS ITS CANADIAN DISTRIBUTION BUSINESS

 TIE/COMMUNICATIONS, INC., SELLS ITS CANADIAN DISTRIBUTION BUSINESS
 SEYMOUR, Conn., Sept. 1 /PRNewswire/ -- TIE/communications Canada Inc. said that on Aug. 31, 1992, it closed on an agreement to sell its Canadian key system distribution business to Nitsuko America Corporation in a cash transaction. The transaction, which was announced on Aug. 10, 1992, does not affect the continuing direct sales and service business of TIE/telecommunications Canada Limited, a 63 percent-owned subsidiary of TIE/communications, Inc. (U.S.) (AMEX: TIE).
 Terms of the transaction were not immediately disclosed. George N. Benjamin III, TIE's president and chief executive officer, said the effect would be reported in the company's next quarterly earnings report.
 Following the transaction, TIE Canada is a mirror image of its U.S. parent, which sold its U.S. distribution business to Nitsuko America on July 1, 1991. The transaction eliminates dual and sometimes competing sales networks for TIE products -- one through a network of distributors and another through the company's own efforts to market its products and services directly to its small- and medium-sized business customers.
 In addition to TIE Canada's direct sales and service operation -- the 12-branch TIE network -- the company will also continue to operate its repair, refurbishing and peripheral products unit, TAI.
 "The divestiture of a conflicting channel of distribution within our Canadian subsidiary will provide the same favorable results to TIE in Canada as it did in the U.S.," said Benjamin. "It allows us to refocus our Canadian company as a direct sales and service organization concentrating on business communications products and services."
 TIE/telecommunications Canada Limited, based in Markham, Ontario, recently reported second quarter net income of 2 cents a share, down from net income of 5 cents a share in the same quarter in 1991. The company cited unfavorable comparisons with one-time 1991 gains and the weak Canadian economy for the decline and noted that its gross margin percentage was unchanged from the previous year, a consequence of vigorous cost cutting.
 TIE, with 56 offices in the United States and 12 in Canada, is a member of The Marmon Group of companies, an international association of more than 60 autonomous manufacturing and service companies with sales of nearly $4 billion. TIE shares are traded on the American Stock Exchange. Shares of TIE/telecommunications Canada Limited are traded on the Toronto and Montreal stock exchanges.
 -0- 9/1/92
 /CONTACT: Gordon Tingets of TIE, 416-513-4703/
 (TIE) CO: TIE/communications Canada Inc.; TIE/communications, Inc. ST: Connecticut, Ontario IN: TLS SU: TNM


GK-OS -- NY039 -- 5398 09/01/92 11:30 EDT
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Date:Sep 1, 1992
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