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LOEWENSTEIN FURNITURE GROUP ANNOUNCES SIGNING OF DEFINITIVE AGREEMENT FOR ACQUISITION OF RTA FURNITURE MANUFACTURER

 POMPANO BEACH, Fla., Jan. 4 /PRNewswire/ -- Loewenstein Furniture Group, Inc. (NASDAQ-NMS: LOEW) announced today that it has signed a definitive merger agreement to acquire, for stock, New West Industries, Inc., a California-based manufacturer of ready-to-assemble furniture, including futons, chairs and related accessories with current annual sales of approximately $13 million.
 The agreement provides that Loewenstein will exchange 620,000 shares of its common stock for all issued and outstanding shares of New West, based upon New West's expected earnings of $620,000 for the year ended Dec. 31, 1993. The agreement provides that the number of shares issued will be adjusted downward if New West's 1993 net earnings are less than the expected amount. The net effect of this adjustment provides that Loewenstein will issue one share of stock for each $1 of New West 1993 net earnings. Although the transaction is subject to the completion of an audit of New West's financial statements and to certain other conditions, it is expected to close by mid-February.
 Michael P. Haley, Loewenstein's president and chief executive officer, stated, "We are pleased to be adding New West, a recognized leader in the futon industry, to our growing RTA division. The combination of New West with our recently acquired Shaffield Industries (aka "From the Source') and our existing RTA distribution channels, will make Loewenstein a very important and significant force in the rapidly growing futon and lifestyles furniture marketplace. With manufacturing facilities in both Tennessee and California, we will be positioned to service the needs of our customers from coast to coast."
 Loewenstein Furniture Group, Inc., headquartered in Pompano Beach, Fla., designs, manufactures and distributes contract seating and ready- to-assemble furniture.
 -0- 1/4/93
 /CONTACT: Michael P. Haley of Loewenstein Furniture Group, 919-622-2201/
 (LOEW)


CO: Loewenstein Furniture Group, Inc.; New West Industries, Inc. ST: Florida, California IN: HOU SU: TNM

AW -- FL004 -- 8849 01/04/94 11:00 EST
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Publication:PR Newswire
Date:Jan 4, 1994
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