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KEENE ANNOUNCES CHARGES TO EARNINGS

 NEW YORK, Dec. 18 /PRNewswire/ -- Keene Corporation (NASDAQ: KEEN) today announced that it anticipates recording two substantial charges to earnings in the fourth quarter. One relates to the sale of its Reinhold Industries, Inc. composites manufacturing subsidiary. The other is for contingent liabilities related to asbestos litigation.
 "The purpose of the sale of Reinhold is to provide Keene with additional funds for use in attempting to resolve the asbestos-related litigation and to allow Reinhold to focus on the management and development of its composites business, through internal growth and acquisition, without the specter of Keene's asbestos-related litigation. We are considering offering Reinhold common stock for sale to Keene's existing shareholders and the investing public at fair value," said Glenn W. Bailey, chairman of Keene Corporation. The charge to earnings as a result of the sale of Reinhold is expected to be approximately $8.0 million. Reinhold, along with many other companies serving the defense an aerospace industries, has been adversely affected by defense cut- backs and the uncertainties in the aerospace industry, compounded by the country's generally sluggish economic conditions.
 Keene also anticipates recording a charge to earnings of approximately $75 million for its asbestos-related contingent liabilities in accordance with SFAS No. 5. Keene previously announced in its third quarter report that it was considering such a move.
 Mr. Bailey noted that the asbestos litigation is unique and complex. "The accounting rules require that Keene record a charge to earnings for an estimate of the asbestos-related contingent liabilities despite the fact that no one is capable of reasonably or reliably estimating such an amount. To date, no one has been able to accurately predict the number of future potential asbestos-related cases and the rate and cost of future dispositions of currently pending and future potential asbestos- related cases because of the variables and uncertainties involved," said Mr. Bailey. Mr. Bailey added that "Keene has regularly and routinely told the investing public what it knows and what the facts are. Without knowing the future, this is the best management can do. Keene may do better or it may do worse -- only the future will tell."
 -0- 12/18/92
 /CONTACT: Timothy E. Coyne of Keene Corporation, 212-557-1900/
 (KEEN)


CO: Keene Corporation ST: New York IN: SU:

LR-AH -- NY069 -- 8338 12/18/92 15:27 EST
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Publication:PR Newswire
Date:Dec 18, 1992
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