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UNITED STATES BANKNOTE TO ACQUIRE BRAZIL'S LEADING SECURITY PRINTER

 NEW YORK, June 8 /PRNewswire/ -- United States Banknote Corporation (NYSE: UBK) announced today that it had signed a definitive purchase agreement to acquire Thomas De La Rue Grafica e Servicos Ltda. (De La Rue - Brazil), a wholly owned subsidiary of De La Rue plc, for $45 million, consisting of cash and approximately 940,000 shares of common stock of the company. De La Rue - Brazil is the country's largest private check printer as well as its leading credit and telephone card manufacturer. It is also the leading supplier of a variety of security printed documents including motor vehicle registration forms, luncheon vouchers and drivers' licenses. De La Rue - Brazil is based in Rio de Janeiro and also has a manufacturing facility in Sao Paulo. For its recent fiscal year ended March 31, 1993, the Brazilian company's unaudited results included sales of approximately $52 million and pre- tax income in the $8-9 million range after converting from cruzeiros to dollars under U.S. GAAP FAS No. 52 reporting guidelines.
 In commenting on the proposed acquisition, Morris Weissman, chairman and chief executive officer of United States Banknote Corporation, stated, "This proposed acquisition signals the return of our American Bank Note subsidiary to Brazil where, until the early 1970's it had printed the Brazilian currency and was well known and respected throughout the country. Our strategy of continued expansion in the Americas it well advanced with this acquisition in the world's fifth largest nation. We believe that the business climate in Brazil is now on the upswing and U.S. Banknote will be well positioned to benefit from the anticipated economic recovery given its dominant market position in Brazil. In addition, we intend to take advantage of the potential synergies between the Brazilian and U.S. manufacturing facilities which should allow for further consolidations and cost efficiencies. We also plan to expand exports from Brazil, particularly to other Latin American countries and the United States. The continuing reduction in trade barriers between the Mercosur countries of Brazil, Argentina, Paraguay and Uruguay will help facilitate this."
 In a separate, but related, transaction, U.S. Banknote agreed to reacquire from De La Rue plc the 20 percent interest in its American Bank Note Holographics subsidiary that it sold in 1989. Simultaneously, U.S. Banknote will sell De La Rue plc its 20 percent interest in De La Rue Holographics, which U.S. Banknote acquired in 1989. The parties have agreed to cross-license certain of their technologies and to terminate a technology sharing agreement executed in 1989. The net consideration to be paid to De La Rue for this transaction will be $15 million. Upon consummation, U.S. Banknote will once again own 100 percent of its holographic subsidiary.
 The transactions are expected to close by the end of June and will be financed through the use of a new $25 million revolving credit agreement provided by Citibank, as agent, as well as the company's existing credit facility and its own cash. Later in the year, U.S. Banknote expects to refinance these borrowings on a longer term basis with a view toward maintaining its existing capitalization ratios.
 United States Banknote is the largest printer of security documents in North America. The company prints United States food coupons, postage stamps, treasury checks, stock and bond certificates, travelers cheques and currency for foreign countries using the intaglio method. Through its American Bank Note Holographics subsidiary, the company is also the world's leading producer of holograms used for security applications.
 -0- 6/8/93
 /CONTACT: Jeffrey A. Oberg, vice president - finance & development of United States Banknote Corporation, 212-582-9200; or Gregory W. Miller, senior vice president of Robinson, Lake, Lerer & Montgomery, 212-484-7404, for United States Banknote/
 (UBK)


CO: United States Banknote Corporation; Thomas De La Rue
 Grafica e Servicos Ltda.; De La Rue, plc ST: New York IN: FIN SU: TNM


SM-LR -- NY013 -- 6412 06/08/93 09:35 EDT
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Publication:PR Newswire
Date:Jun 8, 1993
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