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BALLY CHAIRMAN REPORTS PROGRESS OF RESTRUCTURING TO SHAREHOLDERS

 BALLY CHAIRMAN REPORTS PROGRESS OF RESTRUCTURING TO SHAREHOLDERS
 RENO, Nev., June 16 /PRNewswire/ -- At the company's annual meeting here, Bally Chairman and CEO Arthur M. Goldberg issued a report card on his corporate accomplishments since October 1990, when he assumed management responsibility for Bally Manufacturing Corporation (NYSE: BLY). Goldberg told shareholders that during this period the company had significantly reduced its debt (including debt in default) and operating expenses, while continuing to grow the core areas of the business -- casino hotels and health & fitness centers -- in an effort to restore financial health.
 "When I arrived, I found a company with a solid brand awareness whose image was tarnished. The restructuring plan, which we initiated in October 1990, has helped to restore luster to the Bally name and efficiency to our operations," said Goldberg.
 For example, the company significantly reduced its total debt from $1.87 billion ($1.46 billion exclusive of the company's Nevada casinos which are operated by a subsidiary of the company as debtor-in- possession under chapter 11 of the Bankruptcy Code) at Sept. 30, 1990, when Goldberg arrived, to $1.13 billion at March 31, 1992, the end of the company's most recent quarter, a 40 percent decrease. The reduction in debt lowered the company's interest expense from $40.8 million for the first quarter of 1991 to $33.4 million for the same period 1992.
 Bally (and Bally's Grand) have not made certain scheduled principal and interest payments on their public debt. Those nonpayments and other defaults caused $120.7 million of Bally's consolidated debt (excluding the debt of Bally's Grand) to be presented as debt in default at Dec. 31, 1992.
 Bally Manufacturing has also seen its stock price rise from 1 7/8 in January 1991 to 4 7/8 as of June 12, 1992. Pricing of the company's 6 percent convertible debentures increased from a low of 8 in the first quarter of 1991 to 74 in early June 1992.
 Likewise, its 10 percent convertible debentures increased from a low of 10 in the first quarter of 1991 to 95 in early June 1992.
 The Restructuring Process
 In September 1990, Bally Manufacturing was $1.9 billion in debt, had its bank credit lines frozen and faced a severe cash flow problem. Goldberg and his management team effected a new direction for Bally by:
 -- Decreasing its corporate overhead by millions of dollars;
 -- Repurchasing the company's public debt at discounted prices on the open market and in connection with asset sales;
 -- Selling, through a public offering, approximately 33 percent of the common stock of Bally Gaming International in November 1991. Bally formed this subsidiary through the combination of its gaming equipment businesses. Bally has announced plans to sell additional shares of Bally Gaming to further reduce its debt;
 -- Selling Life Fitness, Inc., Bally's computerized fitness equipment business, in July 1991;
 -- Selling Scientific Games, the company's lottery business, in October 1991;
 -- Improving the quality of revenues and assets of its Health & Tennis business;
 -- Further developing its Atlantic City casino hotel properties.
 "As a result of these moves, we were able to save 32,000 jobs, as well as protect our health & fitness and casino hotel businesses and position them for future growth," Goldberg told shareholders at the meeting.
 Poised For The Future
 "Bally Manufacturing has worked to restore the confidence of its customers, shareholders and bondholders alike and will continue to do so," said Goldberg. "Our longer-term goals will reinforce the solid foundation we have laid over the last 18 months."
 The company's long-term plans include:
 -- Additional expansion of casino properties in Atlantic City and possible ventures into other casino and gaming management opportunities;
 -- Additional expansion in major markets for its health & fitness centers, as well as possible franchising, licensing and related product development.
 Founded in 1963 as Lion Manufacturing, Bally Manufacturing is one of the world's foremost operators of casino hotels and fitness centers. Bally is the parent company to subsidiaries primarily in the management and operation of health and fitness, casino hotel and slot and gaming equipment industries. This includes Bally's Health & Tennis, the nation's largest operator of fitness centers; Bally's Park Place and Bally's Grand Casino Hotels in Atlantic City, Bally's Reno and Bally's Las Vegas Casino Resorts, and Bally Gaming International, a manufacturer/distributor of gaming and video lottery machines.
 -0- 6/16/92
 /CONTACT: Michael W. Kempner or Stan Steinreich of MWW/Strategic Communications, Inc., 201-342-9500, for Bally Manufacturing Corporation/
 (BLY) CO: Bally Manufacturing Corporation ST: Illinois IN: CNO SU:


TQ -- NY070 -- 0768 06/16/92 15:04 EDT
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Publication:PR Newswire
Date:Jun 16, 1992
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