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BROOKE GROUP LTD. ISSUES STATEMENT

 NEW YORK, Oct. 15 /PRNewswire/ -- In response to inquiries, Brooke Group Ltd. (NYSE: BGL) today stated that its Oct. 6 distribution of SkyBox shares to Brooke shareholders is both legally and financially sound.
 Brooke further stated, "The CVR holders, many of whom are Wall Street professionals who only own the CVRs and not Brooke stock, have tried every which way to wage a manipulative public relations campaign using the courts, the media, and the securities market to try to reap financial gains at the expense of Brooke shareholders.
 "We have been advised by legal counsel that the recent amended CVR lawsuit in Delaware is without merit. The CVR holders' attack on the $152 million appraisal of SkyBox ignores the fact that the appraiser was approved by the CVR Trustee and that the appraiser's valuation is, therefore, conclusive and binding on both the CVR holders and the company. We believe that the CVR Trustee's request to the court for instructions regarding the disposition of collateral is defective. We further believe that the Trustee is in breach of its obligations by failing to return that portion of the collateral which Brooke requested and which the Brooke CVR Agreement clearly requires be returned to Brooke promptly upon request.
 "It, therefore, would appear that this latest legal ploy by the CVR holders in reality is part of a last ditch, desperate, attempt by them to avoid speculative losses."
 -0- 10/15/93
 /CONTACT: David Kronfeld or Robert Siegfried, both of Kekst and Company, 212-593-2655/
 (BGL)


CO: Brooke Group Ltd. ST: New York IN: TOB SU:

TM -- NY086 -- 2970 10/15/93 17:54 EDT
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Publication:PR Newswire
Date:Oct 15, 1993
Words:270
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