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IMCERA ANNOUNCES COMPONENTS OF MAJOR WORLDWIDE RESTRUCTURING OF ITS PITMAN-MOORE ANIMAL HEALTH CARE UNIT

 NORTHBROOK, Ill., May 19 /PRNewswire/ -- In a significant and previously announced fourth quarter program aimed at improving future earnings prospects, IMCERA Group Inc. (NYSE: IMA) disclosed today a sweeping and planned restructuring of its Pitman-Moore animal health care company's worldwide operations.
 The pivotal components of the Pitman-Moore restructuring include closure of 11 of its 27 production facilities and a work force reduction of about 30 percent, or more than 1,000 jobs. In addition, Pitman-Moore is discontinuing development of Grolene, its porcine somatotropin (pST) product to produce leaner pork.
 "We have said that we would implement parts of our restructuring program at the earliest opportunity before our June 30 fiscal year-end when we will be able to accurately quantify the impact of these major actions," said C. Ray Holman, president and chief executive officer of IMCERA. "The measures taken today are the result of an aggressive and exhaustive performance improvement program at Pitman-Moore that was launched in January.
 "By eliminating costly manufacturing and administrative duplication, primarily from acquisitions made in recent years to create the animal health company, this restructuring will significantly improve Pitman- Moore's profitability and establish a firm foundation on which it can build," Holman said. "These actions also underscore our absolute commitment to returning IMCERA to superior growth next year and beyond."
 Holman added, "We know enough about future direction to justify today's


actions, but the overall program is not yet complete. Over the next few weeks, we will complete strategies intended to result in sustainable, long-term growth. That is the second part of the overall program. Before June 30, 1993, we will complete the second part and determine the full impact of restructuring.
 "The one-time charge for the total restructuring program," Holman said, "will be substantially greater than the approximately $100 million after taxes that has been quoted publicly by some analysts."
 Pitman-Moore Restructuring Details
 Designed to reduce operating costs and increase market responsiveness and customer service, the Pitman-Moore restructuring eliminates excess production capacity, reorganizes and focuses research and development, trims administrative staff worldwide, and strengthens sales and technical and regulatory support services.
 It is expected that approximately half of the 1,000 employees will leave immediately with the remainder departing during the next two years as some products are discontinued and manufacturing is transferred to remaining facilities.
 "The restructuring will focus our organization on becoming the premier customer service company in the animal health industry," said William J. Mercer, president and chief executive officer of Pitman- Moore, which had fiscal 1992 net sales of $642 million. "The plant rationalization will significantly boost capacity utilization from the current inefficient level. Administrative functions worldwide are being streamlined to reduce overhead costs.
 "As we implement the restructuring, a key goal will be to continue high quality, uninterrupted service to our customers," Mercer stated. He said the restructuring will take approximately two years to complete as production is transferred and products are re-registered with government agencies.
 Plants targeted for closure include facilities located in the United States, South America, the United Kingdom and the Pacific Rim.
 Pitman-Moore will consolidate its research and development at a single site in the Chicago area. Development of biologicals and other specialized products designed for specific local markets, as well as technical customer services, will continue to be provided on a regional basis.
 Discontinuance of Grolene Porcine Somatotropin Development
 Pitman-Moore is discontinuing development of its Grolene brand of porcine somatotropin (pST), a product designed to produce leaner pork. "We have concluded that long-term market potential does not justify further investment," Mercer said. "The Grolene opportunity has been substantially reduced by a protracted U.S. Food and Drug Administration approval process, a shrinking market due to improved genetics, expected consumer resistance and numerous competitive products in development."
 Pitman-Moore is exploring various options for the disposition of the new facility in Terre Haute, Ind., dedicated to Grolene. The older Terre Haute plant will continue to make RALGRO, a popular product used to promote additional growth in cattle.
 Going forward, the company expects to focus on key products related to food animal productivity and disease prevention. These include feed ingredients, biologicals, ectoparasiticides and implants. Pitman-Moore also will continue to selectively market veterinary specialties, antimicrobials, anthelmintics and other niche products, both for food and companion animals.
 Early Adoption of Financial Accounting Standards
 Updating prior comments on FAS 106, 109 and 112, IMCERA President and Chief Executive Officer Ray Holman said the standards are expected to be adopted in IMCERA's fourth quarter. Their impact will be disclosed in the fourth quarter along with quantification of the restructuring charge.
 IMCERA, a Fortune 250 company with fiscal 1992 net sales of more than $1.7 billion, provides human and animal health care products and specialty chemicals through its three international, technology-based businesses -- Mallinckrodt Medical of St. Louis; Mallinckrodt Specialty Chemicals of Chesterfield, Mo.; and Pitman-Moore of Mundelein, Ill.
 -0- 5/19/93
 /CONTACT: Dave Prichard of IMCERA, 708-205-2270/
 (IMA)


CO: IMCERA Group Inc. ST: Illinois IN: SU:

PS -- NY017 -- 0147 05/19/93 09:11 EDT
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