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LEECO ANNOUNCES RESTRUCTURING OF ITS U.S. DIAGNOSTIC OPERATIONS

 LEECO ANNOUNCES RESTRUCTURING OF ITS U.S. DIAGNOSTIC OPERATIONS
 SOUTHFIELD, Mich., Dec. 20 /PRNewswire/ -- Leeco Diagnostics, Inc. (NASDAQ: LECO), announced today that its board of directors has approved a plan to restructure its U.S. diagnostic operations. The restructuring involves a major reduction in work force, further cutbacks in expenses and a scaling down of manufacturing operations in Southfield. The company is seeking to sell or sublease its Southfield facilities. In connection with this restructuring, Leeco expects to incur a non- recurring charge to earnings of approximately $5 million in fiscal year 1991. The restructuring will not affect the profitable operations of Leeco's Italian subsidiary, Technogenetics, which accounts for approximately 80 percent of the consolidated revenues in 1991.
 Rod N. Raynovich, president and C.E.O., commented: "The restructuring is designed to curtail the operating losses experienced in the United States and to preserve the company's consolidated cash resources which were adversely impacted by more than $2 million in 1991 attributed to Leeco's U.S. operations. We expect to report net losses of approximately $3 million or $0.52 per share in fiscal year 1991, not including the restructuring charge to earnings of approximately $5 million. We are currently in discussions to transfer the RIA product line and we continue to explore possible transactions to combine the Preview product line with the operations of another company. The supply of Leeco products will continue through normal channels. A major proportion of Leeco's U.S. revenues has been in the doctor's office market, where Leeco competes with much larger companies with vastly greater resources in research and development and sales. The restructuring should enable us to reposition Leeco and we expect to be able to report further developments in early 1992."
 -0- 12/20/91
 /CONTACT: Rod N. Raynovich, president and CEO of Leeco, 313-353-2620/
 (LECO) CO: Leeco Diagnostics, Inc. ST: Michigan IN: SU: RCN


GK-OS -- NY021 -- 4294 12/20/91 10:59 EST
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Publication:PR Newswire
Date:Dec 20, 1991
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