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BRIO INDUSTRIES INC. - SHARE ACQUISITION

 VANCOUVER, British Columbia, Dec. 3 /PRNewswire/ -- Hermann J. Reipl, president, announces that the company has acquired all of the issued shares of H.P.I. Beverages Ltd. (Vancouver: BNI) for $10,350,000 (Cdn). The purchase price was comprised of $3,000,000 cash, a promissory note for $1,750,000 payable in three equal installments and the issuance of 800,000 shares of Brio at a deemed price of $7.00 per share.
 H.P.I. was formed in 1972 and has since that time been engaged in carbonated and non-carbonated beverage production and packaging, on an increasingly successful level. Grant Smith, the founder and principal of H.P.I., has joined the Board of Directors of Brio and will remain responsible for day to day operations as president of H.P.I.
 The company provides in-store, private-label beverage lines for three of the largest supermarket chains in western Canada: Safeway, IGA and Overwaitea/Save-On Foods.
 H.P.I.'s revenues have tripled over the last five years. Results from operations for those years are as follows:
 Year Revenue Gross Margin
 1993 (estimated) $27,023,000 $3,981,000
 1992 17,646,000 2,162,000
 1991 15,359,000 2,295,000
 1990 14,813,000 1,925,000
 1989 12,084,000 1,800,000
 1988 9,122,000 1,733,000
 Cash flow from operations is estimated at $1,900,000 for 1993.
 The recent substantial increase in sales volume is due primarily to the addition of a new long-term contract with a major food retailer. Originally a cash-and-carry retailer, H.P.I. has evolved into a successful private labeller and now completes with the larger bottlers such as Coca-Cola, Pepsi and Cott.
 Senior management, led by Smith, have a long-term focus and have embraced the theory of continuous improvement in their business and products. Other key factors in the company's success include consistent quality of product, keeping costs as low as possible and maximizing volume to keep unit costs of production low.
 H.P.I. operates its business from its owned premises in Edmonton, Alberta and from a leased location in the Greater Vancouver area. The company's present facilities have a combined capacity of 2,700,000 cases of bottles, 5,200,000 cases of cans and 300,000 cases of bottled water. The company has 59 employees, with 46 at its Edmonton location and 13 in the Vancouver area.
 H.P.I. also operates a cooler and bottled water business in Edmonton through its Alberta Bottled Water division. This business is complementary to Brio's existing Springfield Water operation in the Greater Vancouver area.
 With Brio's financial capability behind it, H.P.I. will have substantial capital for expansion and should be able to improve its already impressive growth record in both revenue and earnings.
 By its acquisition of H.P.I., management of Brio has continued the company's string of success in the beverage industry and aci?eved the goal set by management last spring, which was to direct Brio's resources into an established, revenue producing. From its initial financing of Clearly Canadian in 1988 through to its receipt of more than $23,000,000 from the buyout of its U.S. royalty and distribution rights earlier this year, management has worked diligently to firmly establish the company's position as a leader in the beverage industry. This has further been assisted by the tremendous success of Brio's recent short-term investments and the future looks even brighter.
 -0- 12/3/93
 /CONTACT: Hermann J. Reipl, president, 604-436-5876/
 (BNI.)


CO: Brio Industries Inc. ST: British Columbia IN: SU:

MF -- LA024 -- 0298 12/03/93 14:59 EST
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Publication:PR Newswire
Date:Dec 3, 1993
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