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LOEWEN GROUP INC. ISSUES PRESS RELEASE

 LOEWEN GROUP INC. ISSUES PRESS RELEASE
 VANCOUVER, British Columbia, March 20 /PRNewswire/ -- The Loewen


Group Inc. (NASDAQ: LWNGF, Toronto: LWN) announced that its board of directors met today but did not ratify the agreement which was made on March 11, 1992 with affiliates of Tuckahoe Financial Corporation and with Connor, Clark & Company Ltd. Under those agreements, The Loewen Group agreed to make an offer for any and all of the outstanding Class A Voting Shares and Class B Non-Voting Shares of Arbor Capital Inc. at a price of $13.00 per share. The affiliates of Tuckahoe Financial Corporation and Connor, Clark & Company Ltd. agreed to tender, and not withdraw, approximately 726,525 Class A Voting Shares and 2,541,700 Class B Non-Voting Shares to the Offer.
 In making their decision not to ratify the agreement, the board of directors considered a number of factors, including: (a) the unexpectedly hostile reaction from Scanfield Holdings Limited, the holder of approximately 53.2 percent of the Class A Voting Shares of Arbor, who advised The Loewen Group that it would ''vigorously oppose any efforts by you to acquire control and influence over Arbor including the appointment of your nominees as directors''; (b) the concern that The Loewen Group would be in a vulnerable position with such a large minority position; (c) concern that, in light of the hostile reaction from Scanfield Holdings Limited, The Loewen Group would be unable to account for the investment on an equity basis; (d) the subsequent negative reaction of shareholders of The Loewen Group to the response by Scanfield to the proposed Offer.
 The lock-up agreement provided that the failure of The Loewen Group's board of directors to ratify the agreement by the close of business today, permitted The Loewen Group to terminate the lock-up agreement. Notice of such termination is being sent by The Loewen Group to the other parties to the agreement.
 -0- 3/20/92
 /CONTACT: The Loewen Group Inc., 604-299-9321/
 (LWNGF) CO: The Loewen Group Inc. ST: British Columbia IN: SU:


CH -- LA015 -- 0129 03/20/92 13:06 EST
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Publication:PR Newswire
Date:Mar 20, 1992
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