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FUQUA SIGNS DEFINITIVE AGREEMENT TO PURCHASE DP(R) (DIVERSIFIED PRODUCTS CORPORATION)

 ATLANTA, May 3 /PRNewswire/ -- Fuqua Industries (NYSE: FQA) announced today that it has signed a definitive agreement with Diversified Products Corporation to acquire substantially all the assets of DP(R) (Diversified Products Corporation).
 DP(R), based in Opelika, Ala., with fiscal year 1992 sales of approximately $190 million, is one of the largest and best known fitness and recreation equipment companies in the United States.
 The net purchase price consists of a cash payment of $12 million, the issuance of Fuqua Common Stock equal to $12 million at current market prices, and the assumption or payment by Fuqua's wholly owned subsidiary, DP(R) Acquisition, of certain specific liabilities which include trade payables and a working capital credit line. Fuqua has also agreed to guarantee the $12 million common stock market value for a specified period of time.
 DP(R), which markets and manufactures a wide variety of fitness and recreation products, has a diverse distribution network, including direct marketing, key mass merchandising retailers, and sporting goods retailers in the United States, Canada, and Mexico. The company, whose trademark includes "Fit for Life," has extensive product lines including skiers, steppers, home gyms, treadmills, exercise bicycles, baseball/softball trainers, and other fitness and recreation products.
 Steve O'Brien, chief executive officer of DP(R) since late 1991, gained extensive business leadership experience during a 30-year career with General Electric. Recognizing the potential of the fitness/recreation/leisure industry, O'Brien has been the driving force behind DP(R)'s major thrusts in the areas of new product development, product quality and superior customer service.
 Among the new products recently brought to market by DP(R)'s leadership are the Body-By-Jake Firm Flex, 15 new BodyShaping products, and a dramatically new high-tech Concourse Treadmill product line. Marketing innovations include the development of DP(R)'s direct marketing and highly successful infomercials for its Body-By-Jake line. Additionally, the company benefits from product exposure on the national broadcasts of the top-rated "BodyShaping" program, produced by High Bar Productions, as well as the Body-By-Jake program, hosted by Jake Steinfeld.
 Commenting on Fuqua's purchase of DP(R), O'Brien stated: "We are excited about being part of a corporation that is clearly and aggressively focused on the rapidly growing fitness/recreation/leisure industry. This is the best thing that could have happened to DP(R) and we are committed to making a significant contribution to Fuqua's future growth."
 Charles R. Scott, president and chief executive officer of Fuqua, stated: "DP(R)'s complete line of fitness and recreation equipment fits perfectly into our strategy of becoming a growth company with its major focus on the $65 billion life sports/leisure industry. This acquisition is a significant step in achieving our goal and vision for Fuqua."
 Fuqua anticipates that the closing of this transaction will occur in approximately 30 days and is subject to customary closing conditions and consents.
 Fuqua Industries, Inc. currently has four companies engaged in the broader leisure industry: Qualex (photofinishing), a joint venture with Eastman Kodak (NYSE: EK); Hutch Sports USA (sporting goods equipment); Nelson/Weather-Rite
(camping and outdoor products); and Willow Hosiery (athletic hosiery). These companies provide high-quality, brand name consumer products through distribution channels to retail markets across the United States.
 -0- 5/3/93
 /CONTACT: Michael A. Lustig, vice president-Corporate Development, or Bridget B. Sullivan, manager-Investor Relations of Fuqua Industries, 404-658-9000/
 (FQA EK)


CO: Fuqua Industries, Inc.; Diversified Products Corporation ST: Georgia, Alabama IN: HOU SU: TNM

BR-BN -- AT012 -- 3715 05/03/93 10:57 EDT
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Publication:PR Newswire
Date:May 3, 1993
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