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JETRONIC INDUSTRIES, INC. ANNOUNCES RESTRUCTURING

 JETRONIC INDUSTRIES, INC. ANNOUNCES RESTRUCTURING
 PHILADELPHIA, Oct. 6 /PRNewswire/ -- Daniel R. Kursman, chairman of


Jetronic Industries, Inc. (AMEX: JET), announced today that agreement had been reached with the holders of its 10 percent and 14.5 percent convertible subordinated debentures to restructure its convertible subordinated debt.
 Jetronic has $6,632,000 principal amount of such debentures issued and outstanding and 422,610 shares of Series A and Series B preferred stock issued and outstanding. There is interest accrued on the debentures through July 31, 1992 in the amount of $895,000.
 The 422,610 shares of redeemable preferred stock will immediately be converted into 817,579 additional shares of common stock of the company. This corresponds to the existing conversion ratio, but relieves the company of the potential obligation to redeem the preferred shares for $782,000.
 The debentureholders have agreed to waive and forgive the interest payments in the amount of $895,000 accrued through July 31, 1992.
 The debentureholders have additionally agreed to satisfy $2,321,200 principal amount of the existing debentures for 740,000 shares of common stock of the company. There will remain outstanding $4,310,800 principal amount of debentures which will no longer be convertible into common stock of the company, but which will continue at the same interest rates and maturity dates.
 The debentureholders have also modified the mandatory redemption provisions of the debentures so that there will be no amounts required for mandatory redemption until 1994 and thereafter.
 Jetronic Industries, Inc., will report a net loss of $3,824,000 for the year ended Jan. 31, 1992 (substantially all of which related to the liquidation and discontinuance of the company's retail furniture operations), which, before reflecting the transactions outlined above, would have resulted in a deficit common equity of approximately $2,250,000. After reflecting the transactions outlined above, the net equity of the company, as adjusted, as at Jan. 31, 1992, will be $1,050,000.
 The company will report profits for the first quarter ended April 30, 1992, of $26,000 and profits for the second quarter ended July 31, 1992, in the amount of $164,000.
 Upon completion of the restructuring, Jetronic will have 4,014,991 shares of common stock issued and outstanding, and will issue its Form 10-K and Forms 10-Q for the Jan. 31, 1992, April 30, 1992, and July 31, 1992, periods.
 Mr. Kursman also announced that arrangements had been made to extend the company's bank lending arrangements through May 31, 1993. Mr. Kursman noted that the continuing operations of Jetronic have historically had a consistent record of profitability. Management believes that the debt reduction achieved to date, combined with the benefits of the restructuring, will enable the company to sustain continuing profits.
 The company does not fully meet all of the American Stock Exchange financial guidelines for continued listing. There can be no assurance that the company's listing on the American Stock Exchange will be continued. Management believes that the restructuring discussed in this release and the resumption of profitable operations will favorably impact the company's ability to satisfy American Stock Exchange guidelines.
 JETRONIC INDUSTRIES, INC.
 1992 1991
 Year ended Jan. 31:
 Net sales $28,865,000 $29,769,000
 Net income (loss) (A) $(3,824,000) $(4,090,000)
 First quarter ended April 30:
 Net sales $ 5,406,000 $ 7,659,000
 Net income (loss) $ 26,000 $ (147,000)
 Second quarter ended July 31:
 Net sales $ 6,835,000 $ 6,774,000
 Net income (loss) $ 164,000 $ (88,000)
 Six months ended July 31:
 Net sales $12,241,000 $14,433,000
 Net income (loss) $ 190,000 $ (235,000)
 (A) -- Reflects provision of $3,646,000 for liquidation and discontinuance of the company's retail furniture operations.
 -0- 10/6/92
 /CONTACT: Leonard W. Pietrzak of Jetronic, 215-482-7660/
 (JET) CO: Jetronic Industries, Inc. ST: Pennsylvania IN: SU: RCN


GK-LR -- NY068 -- 7169 10/06/92 15:13 EDT
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Date:Oct 6, 1992
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