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BLACK HAWK HOLDINGS, INC. ANNOUNCES FURTHER INFORMATION REGARDING THE ACQUISITION OF EAGLE PLASTICS, INC.

 MINNEAPOLIS, Oct. 22 /PRNewswire/ -- Black Hawk Holdings, Inc. (OTC Bulletin Board: BHHI), a Minneapolis-based public company, announced on September 16 that it had signed a definitive purchase agreement to acquire approximately 91 percent of Eagle Plastics, Incorporated. The acquisition is scheduled to be completed by the end of November.
 Acquisition funds will come from approximately $15,000,000 of debt and $3,000,000 of cash. It is anticipated that the debt will be in two components, approximately $10,000,000 of senior secured debt, $6,000,000 of which to provide a revolving credit line for Eagle, and $5,000,000 of subordinated debt.
 In conjunction with the acquisition, Black Hawk and Eagle have prepared financial statements for the eight month period ended Aug. 31, 1993 and prepared pro forma statement of operation data on a combined basis as if the acquisition of Eagle occurred on the first day of the appropriate period. The following reflects, on a selected basis, such information.
 Selected Financial Information
 Statement of Operations Data:
 BLACK HAWK EAGLE
 Year Eight Months Year Eight Months
 Ended Ended Ended Ended
 12/31/93 8/31/93 12/31/92 8/31/93
 Net
 Revenues $72,297 $12,604 $23,248,765 $17,202,671
 Net (Loss)
 Earnings (690,557)(169,093) 1,629,999(a) 1,138,450(a)
 Pro Forma
 Net (Loss)
 Income(a) -- -- 984,999 689,450
 Deficiency in
 Income Required
 to Pay Preferred
 Stock Dividends -- -- -- --
 PRO FORMA
 Year Ended Eight Months
 Ended
 Net Revenues $23,321,062 $17,215,276
 Net (Loss)
 Earnings (697,558) (129,643)
 Pro Forma
 Net (Loss)
 Income(a) -- --
 Deficiency in
 Income Required
 to Pay Preferred
 Stock Dividends (890,058) (257,976)
 (a) Eagle elected to have its income taxed as an S corporation under the provisions of the Internal Revenue Code; therefore, taxable income or loss was reported to the individual stockholders for inclusion in their respective tax returns. No provision for federal and state income taxes is included in determining net income. The pro forma net (loss) income reflects net income which would have been reported had Eagle not elected to be taxed as an S corporation.
 Balance Sheet Data:
 As of August 31, 1993
 Black Hawk Eagle
 Actual Actual
 Current Assets $412,311 $6,145,211
 Total Assets 499,948 10,951,063
 Current Liabilities 56,070 4,144,281
 Long Term Liabilities --- 2,056,113
 Minority Interest --- ---
 Total Stockholders'
 Equity 443,878 4,750,669
 The complete financial and other information is available upon request from Black Hawk. Black Hawk's Common Stock is traded on the NASDAQ Bulletin Board under the symbol BHHI.
 -0- 10/22/93
 /CONTACT: Melissa Quinn of Padilla Speer Beardsley, 612-871-8877, for Black Hawk Holdings; or William H. Spell of Black Hawk Holdings, 612-371-9650/
 (BHHI)


CO: Black Hawk Holdings, Inc. ST: Minnesota IN: FIN SU: TNM

AL-DS -- MN019 -- 5860 10/22/93 15:59 EDT
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Publication:PR Newswire
Date:Oct 22, 1993
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