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DRS INDUSTRIES COMPLETES FIRST PHASE OF DEBT RESTRUCTURING PROGRAM

 NEW YORK, Nov. 17 /PRNewswire/ -- DRS Industries, Inc. (NASDAQ: DRSS) said today that it has completed the first phase of its previously announced debt restructuring program through the exchange of $6.2 million of indebtedness into convertible preferred stock and the sale of $5.6 million of common stock through a private offering. DRS has received commitments for an additional $2.7 million of liabilities to be exchanged. DRS also announced that it has retired $2.8 million of indebtedness. As a result of these completed actions, DRS has restored its capital to a positive amount in excess of $1.5 million; upon completion of the remaining $2.7 million in exchange commitments, the Company's capital will exceed $4.2 million.
 DRS completed the exchange of $6.2 million of its outstanding 15 percent secured exchangeable promissory notes and 12 percent secured convertible debentures into a new Series A Convertible Preferred Stock. Substantially all of the 15 percent notes and the 12 percent notes have been either exchanged into preferred or retired. As a result of the debt restructuring, substantially all of the collateral securing the indebtedness has been released. DRS expects to complete the remaining $2.7 million of exchanges shortly.
 DRS also completed the sale of $5.6 million in common stock through a private offering. The Company had originally intended to raise $3.5 million but increased the offering when the initial amount was oversubscribed. DRS will use the additional funds for working capital and to finance the continued expansion of its operations.
 John Selzer, Chief Executive Officer, said, "As a result of the completion of our balance sheet restructuring, DRS has simplified our company's structure to place all of our emphasis on the growth and profitability of our Family Bargain Center operation."
 -0- 11/17/93
 /CONTACT: John A. Selzer of DRS, 212-980-9670/
 (DRSS)


CO: DRS Industries, Inc. ST: New York IN: REA SU: RCN

LG -- NY069 -- 5534 11/17/93 13:26 EST
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Publication:PR Newswire
Date:Nov 17, 1993
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