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DR PEPPER/SEVEN-UP COMPANIES, INC. ANNOUNCES WITHDRAWAL OF OFFER TO TAKE THE SOFT DRINK MAKER PUBLIC

 DR PEPPER/SEVEN-UP COMPANIES, INC. ANNOUNCES WITHDRAWAL
 OF OFFER TO TAKE THE SOFT DRINK MAKER PUBLIC
 DALLAS, July 1 /PRNewswire/ -- Citing an unfavorable market environment for initial public offerings, Dr Pepper/Seven-Up Companies, Inc. today announced that it has withdrawn its offer to take the company public.
 The nation's third largest soft drink maker announced in April a refinancing plan (amended June 26) that included an initial public offering (IPO) of approximately 38 million shares of common stock priced at between $17-$18 per share. The issue was expected to raise approximately $602 million. The other two financial components of the company's refinancing plan included new bank borrowings of some $714 million, at significantly lower interest rates, and utilization of more than $143 million of cash on hand.
 "The decision to cancel the IPO is based clearly on market conditions," said John R. Albers, chairman, president and chief executive officer of Dr Pepper/Seven-Up Companies, Inc. "A price of $18 cannot, at this time, attract a sufficient institutional base of buyers to meet the objectives of our refinancing plan. Any price below $18 does not reflect the fair value of a company that has demonstrated a capability to grow in a highly competitive marketplace.
 "It is unfortunate that the current investment climate leaves us no alternative but to withdraw our refinancing effort. The company will wait until market conditions improve before proceeding with a public offering."
 Albers said that Dr Pepper/Seven-Up Companies, Inc., paced by its lead brands Dr Pepper, Diet Dr Pepper, 7UP and Diet 7UP, is growing at a rate three to four times faster than the industry, estimated at less than 2 percent growth in 1992 by industry analysts.
 With four brands in the top 15, Dr Pepper/Seven-Up Companies, Inc. reported record first quarter sales for 1992. Net sales of $161.5 million were up 18 percent compared to the same quarter of 1991 while operating profit rose 20 percent to $37.8 million. The company reported record net sales in 1991 of $600.9 up 11 percent over the previous year. Operating profit increased 12 percent to $138.2 million.
 Effect of the IPO withdrawal will terminate the company's tender offers for its 15-1/2 percent senior subordinated discount notes due 1998 and for Dr Pepper Company's 11-1/2 percent guaranteed senior secured notes due 1996 and $1.375 senior exchangeable preferred stock. Each of the tender offers was scheduled to expire today at 5:00 p.m., New York City time. All tendered securities will be returned promptly.
 Dr Pepper/Seven-Up Companies, Inc. was formed in 1988 as a holding company for its two principal subsidiaries, Dr Pepper Company and The Seven-Up Company. Other major brands of the company include Cherry 7UP, Diet Cherry 7UP, Welch's carbonated soft drinks and I.B.C. Root Beer and Cream Soda. The company's products are manufactured and distributed through some 600 licensed bottlers and wholesale brokers in the U.S.
 Headquartered in Dallas, Dr Pepper/Seven-Up Companies, Inc. has 912 employees. The company manufactures its syrups, extracts and concentrates in St. Louis. Dr Pepper was first sold in 1885 and is the industry's largest selling non-cola soft drink. Seven-Up is a leader in the lemon-lime flavor category and has been sold since 1929.
 -0- 7/1/92
 /CONTACT: Jim Ball, 214-360-7813, or Tom Bayer, 214-360-7817, both of Dr Pepper/Seven-Up Companies, Inc./ CO: Dr Pepper/Seven-Up Companies, Inc. ST: Texas IN: SU:


AH -- NY128 -- 5968 07/01/92 19:47 EDT
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Date:Jul 1, 1992
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