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AMERICAN EDUCATIONAL PRODUCTS ARRANGES $5 MILLION ACQUISITION LINE OF CREDIT

 BOULDER, COLO., May 18 /PRNewswire/ -- American Educational Products, Inc. (NASDAQ:AMEP) today announced it has arranged a $5 million standby line of credit with Colorado National Bank to support acquisition activities. Draws against the line will be subject to the bank's prior approval. The line is in addition to a $2.4 million revolving line of credit for working capital purposes the company already has with the bank.
 American Educational Products (AEP), with 1992 revenues of $13 million and earnings of 30 cents per share, has steadily expanded through internal growth and the acquisition of compatible businesses. The market for supplemental educational materials, AEP's primary focus, is estimated at $1.2 billion. The industry is highly fragmented, with few large companies, and AEP believes there are significant acquisition opportunites. The company will use the line of credit to fund the acquisition of assets, products or companies that fit its business. The new line of credit is available to AEP at a rate of prime plus one percent, and draws against the line will be amortized over five years.
 American Educational Products, Inc., headquartered in Boulder, is comprised of three wholly owned subsidiaries: Summit Learning, Hubbard Scientific and Scott Resources. In late 1992, AEP completed the acquisition of Redco Science, a manufacturer and distributor of physical science products. AEP's subsidiaries develop, manufacture and distribute hands-on educational products for the K-12 market.
 -0- 5/18/93
 /CONTACT: Curt Swenson of Swenson Falker Eilertsen, 612-371-0000, for American Educational Products; or John E. Panasewicz of American Educational Products, 303-443-0020/
 (AMEP)


CO: American Educational Products, Inc. ST: Minnesota, Colorado IN: SU: FIN

DB -- MN006 -- 9726 05/18/93 11:40 EDT
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Publication:PR Newswire
Date:May 18, 1993
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