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ALLEN GROUP ADOPTS NEW ACCOUNTING STANDARD AND CHARACTERIZES 1992 EARNINGS

 BEACHWOOD, Ohio, Jan. 22 /PRNewswire/ -- The Allen Group Inc. (NYSE: ALN) announced today that it will adopt, effective Jan. 1, 1992, the new accounting standard related to retiree medical and life insurance benefits. This new standard (Statement of Financial Accounting Standard No. 106) requires companies to accrue future retiree benefits over the estimated working life of eligible employees, rather than the current method of expensing these claims as they are paid.
 At an analysts meeting earlier this week, the company responded to questions relating to its earnings per share for the year ended Dec. 31, 1992 by indicating that it expected earnings per common share from continuing operations to be within the $1.50-$1.70 range of analysts' estimates. This earnings range does not include the one-time non-cash charge of $4.6 million ($.47 per common share or 2.9 percent of stockholders' equity) representing the cumulative effect, as of Jan. 1, 1992, of applying the new standard to all prior years.
 This earnings range does, however, include the increase in the 1992 expense for these retiree benefits, as required by the new accounting standard. In 1992, such expenses will be approximately $432,000 ($.04 per common share) higher than under the old method. Financial results for the first three quarters of 1992 will be restated and the fourth quarter results will reflect the applicable portion of the 1992 expense.
 In commenting on this matter, Robert G. Paul, president and chief executive officer of Allen, stated, "Except for the one-time cumulative charge for prior years to adopt the new accounting standard for retiree benefits, we continue to expect to report earnings per common share for 1992 within analysts' estimates of $1.50-$1.70 per common share. This range is after absorbing the current year impact of $.04 per common share for the new standard."
 The Allen Group Inc. (NYSE symbol - ALN) manufactures and markets electronic and other products, principally for the telecommunications and automotive industries, including mobile communications equipment, automotive test equipment and truck components.
 -0- 1/22/93
 /CONTACT: Robert A. Youdelman of The Allen Group, 216-765-5820/
 (ALN)


CO: The Allen Group ST: Ohio IN: AUT TLS SU: ACC

KK -- CL012 -- 8006 01/22/93 15:19 EST
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Date:Jan 22, 1993
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