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ALCO FORMS JOINT VENTURE IN EUROPE

 ALCO FORMS JOINT VENTURE IN EUROPE
 VALLEY FORGE, Pa., Oct. 5 /PRNewswire/ -- Alco Standard Corporation


(NYSE: ASN) announced today that it has entered into an agreement to acquire a substantial equity interest in IMM Office Systems Holding GmbH, Germany's largest independent distributor of office equipment, for an undisclosed amount of cash.
 The resulting joint venture links a major office equipment dealer network in Europe with Alco Office Products, the largest copier dealer network in North America.
 IMM, based in Munich, has 95 outlets in Germany, Austria, Czech Republic, Hungary, Poland, Russia, Slovakia, Slovenia and Switzerland. IMM Office Systems projects 1992 revenues of DM 610 million, approximately $440 million at current exchange rates.
 Under the terms of the agreement, Alco Standard will own 49.9 percent of IMM Office Systems stock. Other equity participants in IMM include DBG, a subsidiary of Deutsche Bank AG, and Bankers Trust GmbH. The agreement provides for the continuation of the joint venture until June 30, 1999. However, under certain circumstances, Alco may acquire the remaining shares prior to that date.
 The equity partnership with IMM marks the entry of Alco Standard's office products group into the European market. Alco Office Products (AOP) has more than 400 outlets in the United States and Canada. AOP's 1992 revenues are projected to exceed $1.2 billion.
 In making the announcement, Ray B. Mundt, chairman and chief executive officer of Alco Standard, said, "We are extremely pleased to have acquired such a prestigious partner as IMM Office Systems. Their broad dealer network and extensive customer base give us substantial market presence in Europe, establishing, in a single stroke, what otherwise could have taken years to build."
 Mundt noted, "IMM is very ably positioned to grow, particularly in Germany's New Federal States as well as the emerging markets in former Eastern Bloc countries. Alco will provide the resources needed to expand IMM's presence in Europe."
 In a related development, Mundt announced that Alco will divest Alco Diversified Services (ADS) in order to focus corporate financial resources on its core businesses: paper and office products distribution. ADS includes the industrial and aviation service companies of Alco's former Triumph Group and has annual revenues of approximately $230 million. In keeping with a long-standing Alco practice, the corporation said it plans to sell ADS in a management-led buyout. Proceeds from the sale of ADS are expected to substantially offset the cost of the IMM equity purchase.
 Alco Standard strategy calls for the internationalization of its core businesses, a process accelerated this year with the purchases of four large, Canadian paper distributors, according to Mundt. "This partnership with IMM Office Systems is another major step in achieving our strategic plan to make Alco a world-class competitor in paper and office products. We believe that building shareholder value in the '90s requires that we adopt a global approach to our businesses. The Canadian paper acquisitions and this joint venture with IMM should leave no doubt that Alco intends to be a global player in paper and office products distribution."
 Alco Standard Corporation, headquartered in Valley Forge, is a publicly owned paper and office products distribution company. For its fiscal year ended Sept. 30, 1991, revenues were $4.8 billion.
 /delval/
 -0- 10/5/92
 /Editors: David B. Kirkland may be reached at The Pierre in New York between 8 a.m. and 6 p.m. on Monday, Oct. 5. The telephone number is 212-838-8000, ext. 1025./
 /CONTACT: David B. Kirkland of Alco Standard, 215-296-8000, or, home, 215-542-9025/
 (ASN) CO: Alco Standard Corporation; IMM Office Systems Holding GmbH; Alco
 Office Products; Alco Diversified Services ST: Pennsylvania IN: SU: JVN


CC -- PH001 -- 6379 10/05/92 07:48 EDT
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Date:Oct 5, 1992
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