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DRS INDUSTRIES SIGNS LETTER OF INTENT FOR CONVERTIBLE PREFERRED STOCK OFFERING

 NEW YORK, Jan. 3 /PRNewswire/ -- DRS Industries, Inc. (NASDAQ: DRSS), announced today that it has signed a letter of intent with Rodman & Renshaw, Inc., to manage an underwritten public offering of convertible preferred stock. Under the letter, the company anticipates raising approximately $25 million of gross proceeds. The preferred stock would be convertible into common stock at a premium to the market price of the company's common stock on the closing date of the offering. Consummation of the underwritten public offering is subject to a variety of factors including market conditions at the time of the offering and the execution of a definitive underwriting agreement. The company expects that it will file a registration statement with the Securities and Exchange Commission concerning the proposed offering early in 1994.
 DRS intends to use the proceeds of the offering principally to purchase outstanding debt of its Family Bargain Center subsidiary at a discount, to redeem existing DRS convertible preferred stock, and to provide capital to Family Bargain Center for additional store expansion,
 John Selzer, chief executive officer of DRS, said, "The convertible preferred stock offering, if completed, will enable DRS to accelerate the growth of Family Bargain and retire outstanding debt and should enhance future earnings."
 -0- 1/3/94
 /CONTACT: John A. Selzer of DRS Industries, 212-980-9670/
 (DRSS)


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

SH-TW -- NY019 -- 8446 01/03/94 10:24 EST
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Publication:PR Newswire
Date:Jan 3, 1994
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