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ALLEN GROUP ANNOUNCES FIRST QUARTER EARNINGS

 BEACHWOOD, Ohio, May 3 /PRNewswire/ -- The Allen Group Inc. (NYSE: ALN) reported today that its earnings before accounting changes were $.40 per common share for the quarter ended March 31, 1993 as compared to $.26 per common share for the same period last year, an increase of over 54 percent.
 During the first quarter of 1993, the company reported an additional $.21 in primary earnings per common share ($.16 per common share fully diluted) as a result of the cumulative effect of the adoption of an accounting change dealing with income taxes. During the first quarter of 1992, the company reported a charge to earnings of $.47 per common share (both primary and fully diluted) as a result of the cumulative effect of the adoption of an accounting change dealing with postretirement benefits other than pensions.
 Sales for the first quarter of 1993 were $80.9 million, a 37 percent increase from sales of $59.1 million for the first quarter of 1992. This sales increase was primarily due to the acquisition of Alliance Telecommunications Corporation which was completed during the third quarter of 1992.
 Commenting on the first quarter results, Robert G. Paul, president and chief executive officer, stated: "This significant increase in earnings per common share reflects strong growth and improved profits in our Mobile Communications segment and improvement in our Truck Products segment. Our Allen Testproducts division and related leasing subsidiary are the only businesses with lower sales and profits than a year ago and, as previously announced, we have entered into a contract to sell these businesses to SPX Corporation. Since the review of the proposed sale by the U.S. Federal Trade Commission has not yet been completed, we continue to report these businesses as part of our continuing operations. We are hopeful that the Federal Trade Commission will complete its review quickly in order to expedite the consummation of this transaction".
 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 and operates centralized automotive emissions inspection programs.
 The Allen Group Inc.
 Consolidated Statements of Income (Loss)
 (Amounts in Thousands)
 Three Months Ended
 March 31,
 1993 1992
 (Unaudited)
 Manufacturing
 Sales $80,884 $59,058
 Costs and expenses:
 Cost of sales (52,490) (37,499)
 Selling, general and
 administrative expenses (21,857) (18,147)
 Equity in loss of joint ventures (801) (738)
 Interest and financing expense (1,155) (239)
 Income before taxes - manufacturing 4,581 2,435
 Lease Financing
 Lease finance revenue 3,656 4,043
 Interest expense (896) (1,263)
 Selling, general and
 administrative expenses (580) (696)
 Provision for credit losses (808) (480)
 Income before taxes - lease financing 1,372 1,604
 Income before income taxes 5,953 4,039
 Provision for income taxes (930) (570)
 Income before cumulative effect
 accounting changes 5,023 3,469
 Cumulative effect of accounting changes
 (Note A): Postretirement benefits
 other than pensions - (4,599)
 Income taxes 2,102 -
 Net income (loss) $7,125 ($1,130)
 Net income (loss) applicable to
 common stock $6,119 ($2,136)
 Earnings per common share:
 Primary:
 Income before accounting changes $.40 $.26
 Cumulative effect of accounting changes:
 Postretirement benefits other than
 pensions - (.47)
 Income taxes .21 -
 Net income (loss) $.61 ($.21)
 Fully Diluted:
 Income before accounting changes $.40 $.26
 Cumulative effect of accounting changes:
 Postretirement benefits other than
 pensions - (.47)
 Income taxes .16 -
 Net income (loss) $.56 ($.21)
 Note A: In 1992, the company adopted Statement of Financial Accounting Standards ("SFAS") No. 106 "Postretirement Benefits Other Than Pensions" effective as of January 1, 1992. The consolidated statements of income (loss) for the period en have been restated to reflect this change in accounting. Effective January 1, 1993, the company adopted SFAS No. 109 "Accounting for Income Taxes", and has recorded the cumulative effect of this change in accounting in the financial statements for the three months ended March 31, 1993.
 -0- 5/3/93
 /CONTACT: Robert A. Youdelman of The Allen Group, 216-765-5820/
 (ALN)


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

BM -- CL019 -- 3727 05/03/93 11:05 EDT
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Date:May 3, 1993
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