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WESTINGHOUSE, LEHMAN BROTHERS AGREE

 PITTSBURGH, April 8 /PRNewswire/ -- Westinghouse Electric Corporation (NYSE: WX) announced today that it has agreed to sell most of the remaining commercial real estate assets of its financial services unit for approximately $1 billion in cash, an amount which exceeds the reserved value of the assets.
 The transaction also enables Westinghouse to share in the future value of the assets to be sold.
 Gary M. Clark, president and acting chief executive officer, said that the pending sale, combined with asset sales already scheduled, will enable Westinghouse to substantially liquidate its commercial real estate assets by mid-year.
 The assets, which have a book value before reserves of $1.7 billion, are being sold for approximately 52 percent of original book value to LW Real Estate Investments, L.P., a newly formed partnership. An affiliate of the investment banking firm Lehman Brothers will be the general partner. Westinghouse will invest about $150 million in a 49 percent limited partnership interest and Lehman Brothers will invest a similar amount for its equity interests in the partnership. LW Real Estate Investments will assume certain off-balance-sheet financing commitments related to the assets.
 "This sale accelerates our planned withdrawal from the financial services business," Clark said. "It also demonstrates the effectiveness of our strategy of packaging these assets to provide the best value to Westinghouse."
 "The partnership is an innovative way to immediately monetize these real estate assets while maintaining a 49 percent interest in any potential upside," said Robert A. Watson, chairman and chief executive officer of Westinghouse Financial Services, Inc. "The partnership intends to liquidate assets as quickly as possible through securitizations and other accelerated sales and disposition techniques.
 "We're making significant progress in our asset sales," Watson said. "In addition to the $1 billion sale we're announcing today, over the last two quarters we have sold assets for $1.3 billion in cash, at values which exceed our reserved levels. We expect similar asset sale activity in the second quarter. That will mark three consecutive quarters of asset sales each in excess of $600 million and each at favorable prices."
 The sale is expected to be completed as soon as possible following satisfaction of certain closing conditions. Proceeds from the sale are expected to be used to pay down debt.
 "By teaming up with Lehman Brothers, which has the expertise and track record in real estate-related dispositions and securitizations, we expect the partnership to achieve maximum value from these assets," Watson said.
 Lehman Brothers is a leader in commercial real estate/mortgage acquisitions, dispositions and securitizations. The firm is also one of the top lead managers of mortgage-backed securities, having underwritten more than $42 billion in mortgage securities in 1992.
 Morgan Stanley advised Westinghouse on this transaction and will continue to advise Westinghouse on the future liquidation of any remaining commercial and residential real estate.
 Clark said the sale marks an important milestone in the corporation's comprehensive plan to rebuild its value. The plan, announced last November, refocuses the corporation's business strategy and provides for an orderly withdrawal from the financial services business.
 "We've still got a lot of work to do, but achievements like this -- in one of the more difficult areas of our plan -- make it clear that we're on the right path," Clark added.
 /delval/
 -0- 4/8/93
 /CONTACT: Jay McCaffrey of Westinghouse Electric, 412-642-3366/
 (WX)


CO: Westinghouse Electric Corporation; LW Real Estate Investments, L.P.
 Lehman Brothers ST: Pennsylvania IN: FIN RLE SU: TNM


DM -- PG005 -- 4070 04/08/93 08:45 EDT
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Publication:PR Newswire
Date:Apr 8, 1993
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