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DRS INDUSTRIES SELLS INTEREST IN MANDEL-KAHN

 NEW YORK, June 10 /PRNewswire/ -- DRS Industries, Inc. (NASDAQ: DRSS) today announced that it has sold 100 percent of its interest in its wholesale distribution business, Mandel-Kahn Industries, Inc., to MKI Holding Corp.
 Under the terms of the purchase agreement, DRS will receive from MKI Holding a promissory note equal to the amount of DRS' remaining investment, if any, in Mandel-Kahn as of April 30, 1993, such amount to be determined upon completion of Mandel-Kahn's annual audit. Also under the terms of the purchase agreement, MKI Holding will indemnify DRS in connection with outstanding guarantees of up to $3,500,000 of Mandel- Kahn's debt, for which DRS continues to be liable. MKI Holding will require outside financing to satisfy its indemnity obligation to DRS.
 DRS will also be entitled to receive 100 percent of any cash flow MKI Holding receives in the future as a result of its ownership of Mandel-Kahn, up to the amount of DRS' original investment in that company. Thereafter, DRS will be entitled to 50 percent of any cash flow MKI Holding may receive from or in respect of its ownership of Mandel-Kahn.
 MKI Holding is a newly-formed company organized by Benson A. Selzer and Joseph Eiger, DRS' chairman and vice-chairman, respectively, for the purpose of this transaction. Mr. Selzer and Mr. Eiger also control FIC Holding Corp., which owns a distribution business, and they plan to operate that business and Mandel-Kahn's distribution business under one management structure. FIC Holding Corp. will also guaranty the MKI Holding promissory note to DRS.
 The decision to sell Mandel-Kahn was made after the board of directors DRS determined that Mandel-Kahn would continue to lose money under the present ownership structure. According to a spokesman, as a result of the sale DRS will be able to concentrate on managing and expanding DRS' retail apparel business, Family Bargain Center, and on seeking strategic acquisitions.
 As a result of the sale of Mandel-Kahn, DRS' audited year-end report for the twelve months ended April 30, 1993 will reflect Mandel-Kahn as a discontinued operation.
 Also as a result of the sale, DRS' board of directors voted to change the company's name to "Family Bargain Holdings, Inc." The name change will become effective upon approval by the holders of a majority of DRS' outstanding common stock.
 -0- 6/10/93
 /CONTACT: John A. Selzer, chairman of DRS Industries, Inc., 212-980-9670/
 (DRSS)


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

WB-OS -- NY065 -- 0732 06/10/93 15:05 EST
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Publication:PR Newswire
Date:Jun 10, 1993
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