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DAMARK TO PURCHASE COMB ASSETS; DAMARK AND FINGERHUT COMPANIES SIGN LETTER OF INTENT

 MINNEAPOLIS, June 21 /PRNewswire/ -- DAMARK International (NASDAQ: DMRK) and Fingerhut Companies, Inc. (NYSE: FHT) announced today the signing of a letter of intent for the purchase of the assets of Fingerhut's COMB Corporation subsidiary by DAMARK International. The agreement is expected to be completed by August 31, 1993, and is subject to approval by both companies' boards of directors and other customary closing conditions. Financial terms of the agreement were not disclosed.
 "We are excited about bringing COMB under the DAMARK umbrella. COMB has approximately $100 million in revenues and a 1.3 million active customer list," said Mark A. Cohn, DAMARK chairman and CEO. "Our intent is to continue and nurture the COMB business, maintaining it as a separate catalog entity with its own customer identification and merchandising strategy while leveraging our existing infrastructure." "With Sears leaving the catalog marketplace, it has created an enormous opportunity for our core business which has been growing at 15 percent per year," said Ted Deikel, Fingerhut chairman and CEO. "Therefore we are focusing our resources on our base business, Fingerhut Corporation, as well as our Montgomery Ward Direct joint venture and TV opportunities through USA Direct. The COMB sale will have no material effect on 1993 results."
 Fingerhut Companies, Inc., one of the nation's largest catalog marketing companies, sells brand name and private label merchandise primarily through direct mail to an active base of more than 13 million customers. The company had revenues of $1.6 billion in 1992, and employs approximately 8,500 people in Minnesota, Wisconsin and Tennessee.
 Founded in 1986 and headquartered in Minneapolis, DAMARK International, Inc., is a leading national direct merchandiser of "great deals," offering brand name and other quality merchandise at value- oriented prices. For the twelve months ended December 31, 1992, the company reported sales of $270 million.
 -0- 6/21/93
 /CONTACT: John Mackay or Marian Briggs both of Padilla Speer Beardsley, 612-871-8877; for DAMARK, or Mark Cohen of DAMARK, 612-531-4631, or Ted Diekel of Fingerhut Companies, Inc. 612-936-5410/
 (FHT) (DMRK)


CO: Fingerhut Companies, Inc.; DAMARK International, Inc. ST: Minnesota IN: REA SU: TNM

DB -- MN013 -- 4235 06/21/93 17:53 EDT
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Publication:PR Newswire
Date:Jun 21, 1993
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