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ACQUISITION CAPABILITY ANNOUNCES THE FORMATION OF A SUBSIDIARY

 ACQUISITION CAPABILITY ANNOUNCES THE FORMATION OF A SUBSIDIARY
 NEW YORK, June 12 /PRNewswire/ -- Acquisition Capability, Inc. (NASDAQ: ACQN) announced the formation of a new wholly owned subsidiary, American Cooling Industries, Inc. (ACI), which is intended to develop and promote a new proprietary line of products for the air conditioning and refrigeration industry. These new products are intended to be complimentary to the products now being distributed by Actrade, the company's export subsidiary, and are intended to permit the company to offer a full range of related product in this important industry segment.
 Management has developed an operating plan whereby ACI will seek out potential acquisitions of medium sized American manufacturers with established lines of these related products to provide the company with an in-house production capability and; develop and produce such related products under private label arrangements with existing manufacturers. All of these new products will be marketed overseas under the company's own "American Cooling Industries" label.
 Although management has begun its search for possible acquisition candidates, discussions are at a very preliminary stage and no agreements have yet been reached. However, management has reached an understanding in principal with an American manufacturer to produce an initial line of products under the company's "American Cooling Industries" label and has entered into a representation and distribution agreement with a European distributor who will promote the company's new product line. Initial orders and product sales under this distribution agreement are planned to begin during the summer of 1992. Management also plans a promotional campaign to introduce this new product line throughout its overseas network of distributors and suppliers.
 John Woerner, president of this new subsidiary, stated, "although it is much too early to make any projections about potential revenues, we are very excited about the decision to produce a proprietary line of compatible products for the air conditioning and refrigeration industry. In this fashion we believe that we can now offer overseas distributors a complete line of products from a single source. This is a very important factor for foreign distributors in dealing with large end- users in their respective markets. Further, by establishing our own brand name we will have the added benefit of reducing our dependence upon a wide range of small domestic manufacturers who in many cases have been unable to meet the demands of the growing export market."
 ACI has been capitalized with a $500,000 investment by the company which management believes will be adequate to establish commercial operations.
 -0- 6/12/92
 /CONTACT: Amos Aharoni of Acquisition Capability, 212-563-1036/
 (ACON) CO: Acquisition Capability, Inc.; American Cooling Industries, Inc. ST: New York IN: SU:


LR-OS -- NY002 -- 9580 06/12/92 10:00 EDT
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Publication:PR Newswire
Date:Jun 12, 1992
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