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INNOVEX ANNOUNCES DIVESTITURES OF PHOTO GROUP AND MAR ENGINEERING

 INNOVEX ANNOUNCES DIVESTITURES OF PHOTO GROUP AND MAR ENGINEERING
 HOPKINS, Minn., Oct. 8 /PRNewswire/ -- Innovex, Inc. (NASDAQ-NMS: INVX) today announced the signing of a letter of intent to sell a majority interest of its Photo Equipment Market Group. The company also reported it has divested a substantial portion of its Mar Engineering subsidiary.
 Thomas W. Haley, Innovex's chairman and chief executive officer, said these divestitures would significantly strengthen the company's profitability in fiscal 1993 by allowing it to focus solely on high- growth opportunities for its fine wire technology in the disk drive and medical markets. He said these moves would also reduce the company's total revenues by approximately 50 percent over the short term.
 Haley said the company intends to sell 100 percent of the assets of its Photo Equipment Market Group, less certain receivables, to Lucht Acquisition Corporation (LAC), an investment group headed by Jean R. Stiegemeier and Rob Furst.
 The company would initially hold a 40 percent ownership interest in LAC and the Stiegemeier group a 60 percent interest. Under certain conditions, the Stiegemeier group would have the ability to acquire an additional 20 percent interest after one year. At that point, the company would continue to hold a 20 percent ownership interest in LAC.
 With estimated sales in excess of $17 million for the fiscal year ended Sept. 30, 1992, the photo group is the nation's largest manufacturer of multi-image printers and related automated systems for professional photo laboratories.
 Haley said he expects to enter a definitive agreement with LAC and complete this transaction in November. Due to accounting requirements, the normal seasonal loss of the photo group through the anticipated date of sale will be accrued in the fiscal 1992 earnings.
 Haley also announced that the head gimbel assembly technology and related assets of Mar Engineering have been sold to Martronics, Inc. This new company is headed by James J. Ressmeyer, formerly Mar's general manager.
 The remaining portion of Mar's business, consisting primarily of high-precision grinding systems, has been downsized and merged into the company's disk drive group. The company said it expects to incur an after-tax charge against fiscal 1992 earnings of $.03 to $.05 per share, associated with writing off Mar's remaining assets.
 Innovex is the nation's leading manufacturer of lead wire assemblies for thin-film disk drives. The company's common stock is traded on the National Market System under the NASDAQ symbol INVX.
 -0- 10/08/92
 /CONTACT: Thomas W. Haley, chairman and CEO of Innovex, 612-938-4155/
 (INVX) CO: Innovex, Inc.; Lucht Acquisition Corporation ST: Minnesota IN: CPR SU:


KH -- MN014 -- 8100 10/08/92 17:22 EDT
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Publication:PR Newswire
Date:Oct 8, 1992
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