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ASSOCIATED HEALTHCARE INDUSTRIES ANNOUNCES CONTRACT TO PURCHASE CONTOUR FABRICATORS

 CLEARWATER, Fla., Jan. 14 /PRNewswire/ -- Associated Healthcare Industries, Inc. (OTC Bulletin Board: AHII) (AHII) announces that a contract for the purchase of Contour Fabricators, Inc. and Contour Fabricators of Michigan (jointly known as CFI) has been signed. The contract sets the terms for the purchase and certain reorganization plans within the AHII corporate structure. Pending shareholder approval of these terms and conditions, closing for the acquisition has been set for Feb. 15, 1993.
 The terms for the purchase of CFI includes the payment of $6 million in the redeemable preferred stock of AHII, $2 million in convertible preferred stock with warrants included for purchase of an additional $2 million of the common stock of AHII.
 As a part of the contracted agreement AHII has agreed to a $6 million secondary offering of its common stock; $2 million of the gross proceeds of this proposed offering will go to selling shareholders with the balance of $4 million in gross proceeds to go to the operations of the combined companies. AHII management has secured a letter of intent for a firm commitment offering for the $6 million. This agreement is to be executed prior to the contract closing. The proposed offering is expected to be effective within the following six months.
 Contour Fabricators, Inc. has an 18-year operating history within the medical product manufacturing arena. 1992 operating revenue is in excess of $4 million with net pre-tax profits expected to exceed $1 million.
 The founding management of CFI will remain in operating control of the combined corporations after the acquisition.
 -0- 1/14/93
 /CONTACT: Joe DuRant of Associated Healthcare Industries, 813-573-3312/
 (AHII)


CO: Associated Healthcare Industries, Inc.; Contour Fabricators, Inc.;
 Contour Fabricators of Michigan ST: Florida, Michigan IN: HEA SU: TNM


AW-JB -- FL003 -- 4750 01/14/93 09:53 EST
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Publication:PR Newswire
Date:Jan 14, 1993
Words:299
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