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BALLY MANUFACTURING CORPORATION OFFERS COMMON STOCK TO CURE DEBENTURE AND PREFERRED STOCK DEFAULTS AND PREPAY INTEREST

 BALLY MANUFACTURING CORPORATION OFFERS COMMON STOCK TO CURE
 DEBENTURE AND PREFERRED STOCK DEFAULTS AND PREPAY INTEREST
 CHICAGO, Aug. 27 /PRNewswire/ -- Bally Manufacturing Corporation (NYSE: BLY) announced today that it is commencing the solicitation of consents from the holders of its 10 percent convertible subordinated debentures due 2006, 6 percent convertible subordinated debentures due 1998, and Series D convertible exchangeable preferred stock to receive Bally Manufacturing common stock for interest in arrears and prepaid interest with respect to the debentures and dividends in arrears with respect to the preferred stock.
 Holders of debentures would receive shares of common stock valued at the average reported New York Stock Exchange price for a 15 trading-day- period prior to consummation of the consent solicitations for all accrued interest through the most recent interest payment date (approximately $220.89 per $1,000 principal amount for the 10 percent debentures and approximately $125.51 per $1,000 principal amount for the 6 percent debentures) as well as prepaid interest covering the regularly scheduled interest payments through Dec. 15, 1993 (approximately $139.53 for the 10 percent debentures and approximately $57.40 for the 6 percent debentures).
 Holders of preferred stock would similarly receive shares of common stock in lieu of the $7.00 per share of dividends in arrears on the preferred stock through Aug. 1, 1992, and will be asked to give Bally the option to pay dividends through Nov. 1, 1993, by the future issuance of common stock.
 Each of the consent solicitations will expire at 5:00 p.m., New York City time, on Sept. 25, 1992, in each case, unless extended by Bally.
 The consent solicitations are one of the elements of the restructuring of Bally and its subsidiaries commenced in the fourth quarter of 1990. The transactions comprising the restructuring have included, among other things, amendments to the bank credit agreements of Bally and certain of its subsidiaries, the sales of all or a portion of certain of Bally's products and services businesses, and the purchase by Bally of a portion of its public debt obligations. The consent solicitations are intended to enable Bally to eliminate existing payment defaults under the debentures and bring Bally current on its dividend obligations under the preferred stock as well as to help reduce, temporarily, cash payment requirements, giving Bally additional time to pursue its previously announced restructuring goals.
 The debenture consent solicitations are each subject to the condition, among others, that they shall have been accepted by the holders of not less than 80 percent in principal amount of the respective debentures, and the preferred stock consent solicitation is subject to approval by the holders of a majority of the outstanding preferred stock. Bally expects to pay past due interest (but not prepaid interest) in cash to non-consenting holders of debentures, if any, promptly following consummation of the consent solicitations.
 A copy of the prospectus relating to the consent solicitations may be obtained by contacting the information agent, Mackenzie Partners, Inc., 156 Fifth Ave., New York, NY 10010.
 In addition, Bally Manufacturing Corporation announced last week that its Nevada subsidiary, Bally's Grand, Inc., which owns and operates its Bally's Las Vegas casino hotel resort, reached an agreement with the indenture trustees for Bally's Grand first mortgage notes due April 15, 1996, the official committee representing Bally's Grand creditors, a holder of a significant amount of Bally's Grand's outstanding public debt securities and Bally Manufacturing Corporation, which provides for a consensual resolution of all outstanding issues among the parties with respect to Bally's Grand plan of reorganization. Bally's Grand amended its plan of reorganization based on this agreement. A confirmation hearing with respect to the plan of reorganization is scheduled for Sept. 15, 1992.
 Bally Manufacturing Corporation is one of the world's foremost operators of casino hotel resorts and fitness centers. Bally Manufacturing is listed on the New York Stock Exchange (NYSE: BLY). Other subsidiaries of Bally Manufacturing own and operate Bally's casino hotel resorts located in Atlantic City, N.J., and these subsidiaries are not affected by the bankruptcy of Bally's Grand in Nevada.
 The common stock is being offered only through a prospectus. The consent solicitations are not being made to, and no consents are being solicited from, holders in any jurisdiction in which the consent solicitation or the giving of a consent so solicited would not be in compliance with applicable securities or Blue Sky laws.
 -0- 8/27/92
 /CONTACT: Nina Girgis or Stan Steinreich of MWW/Strategic Communications, 201-342-9500, for Bally/
 (BLY) CO: Bally Manufacturing Corporation ST: Illinois IN: CNO SU: OFR


GK -- NY082 -- 4169 08/27/92 17:48 EDT
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Date:Aug 27, 1992
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