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DISCOVERY ZONE AGREES TO ACQUIRE ENCHANTED CASTLE AND GRANTS DEVELOPMENT RIGHTS IN MEXICO

 CHICAGO, Oct. 4 /PRNewswire/ -- Chicago-based Discovery Zone, Inc. (NASDAQ: ZONE) today announced that it has agreed to acquire all of the outstanding capital stock of two privately held corporations which together own an approximately 42,000-square-foot family entertainment center and restaurant in Lombard, Ill., known as "Enchanted Castle." Consummation of this acquisition is expected to occur in November 1993 and is subject to customary closing conditions.
 Discovery Zone also announced it has reached an agreement in principle with Alfredo Brener, chairman of the board of the sole franchisee of Blockbuster video stores in Mexico, to form a venture for the development of 70 Discovery Zone FunCenters in Mexico over approximately the next four years. Brener and certain management of the venture will control approximately 80 percent, and Discovery Zone will control approximately 20 percent, of the venture. This agreement in principle is subject, among other matters, to the negotiation and execution of definitive agreements between the parties.
 Discovery Zone, Inc. is the nation's largest owner, operator and franchisor of indoor children's playgrounds (FunCenters) that feature a distinct play zone comprised of a series of tubes, ball bins, slides, foam climbing mountains, air and water trampolines, obstacle courses, ramps, stairs and other soft-padded apparatus for crawling, jumping, swinging and climbing. Discovery Zone FunCenters also include a separate play zone for toddlers under 40 inches in height, and an open play area for infants, as well as party rooms, a game room, a food service area, a retail sales area, and a soundproof glass-enclosed parents room.
 As of Sept. 30, 1993, there were 115 Discovery Zone FunCenters operating in 32 states and the Commonwealth of Puerto Rico, 70 company- owned and 45 franchised.
 -0- 10/4/93
 /CONTACT: Robert D. Mitchum, vice president and chief financial officer of Discovery Zone, 312-616-3800/
 (ZONE)


CO: Discovery Zone, Inc. ST: Illinois IN: SU: TNM

MP -- NY067 -- 8361 10/04/93 12:40 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
Words:318
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