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LVI ANNOUNCES RECEIPT OF RESTRUCTURING PROPOSAL

 LVI ANNOUNCES RECEIPT OF RESTRUCTURING PROPOSAL
 NEW YORK, Oct. 21 /PRNewswire/ -- The LVI Group Inc. (LVI)


(NYSE: LVI) today announced that it had received a restructuring proposal from representatives of certain holders of the outstanding Class A and Class B senior secured redeemable notes (the notes) of NICO, Inc. (NICO), LVI's wholly-owned subsidiary. Pursuant to the proposal, participating holders of the notes (noteholders) would surrender their notes, together with their LVI common stock, and, in exchange therefor, the noteholders would acquire all of the stock or assets of LVI Environmental Services Group Inc. (LVI Environmental), a wholly-owned subsidiary of NICO that conducts asbestos abatement operations. As a result, LVI's outstanding consolidated indebtedness for borrowed money (assuming surrender of 100 percent of the notes) would be reduced from approximately $46.3 million to approximately $4.8 million. Participating noteholders would also acquire a three-year warrant to purchase 49 percent of the common stock of Hall-Mark Electrical Supplies Corp., a subsidiary of NICO engaged in the distribution of electrical supplies. The president of LVI, who is chief executive officer of LVI Environmental, and certain other executives of LVI Environmental, would acquire an equity interest and stock options in LVI Environmental. The restructuring would be contingent upon participation by holders of at least 95 percent of the outstanding aggregate principal amount of each class of the notes.
 The proposal also provides for the payment to LVI by LVI Environmental following the closing of the restructuring of a limited amount of funds to be utilized for the working capital requirements of LVI.
 The proposal results from informal discussions between representatives of the notehoders and a committee of the LVI's board of directors. The proposed restructuring has not yet been approved or considered by the full board of directors of LVI or approved by the noteholders. Accordingly, no assurance can be given that the proposed restructuring or any alternative restructuring will be effected or, if effected, as to the timing of any such proposed restructuring.
 LVI, through its wholly-owned subsidiaries, is a national asbestos abatement contractor and is engaged in the distribution of electrical supplies for the construction industry both domestically (primarily in the New York Metropolitan area) and for export. During 1992, the company's asbestos abatement operations (LVI Environmental) and its electrical supply business (Hall-Mark) accounted for approximately 74 percent and 26 percent, respectively, of the company's revenues from operations.
 -0- 10/21/92
 /CONTACT: Burton T. Fried, president of LVI Group Inc., 212-951-3660/
 (LVI) CO: LVI Group Inc. ST: New York IN: SU: RCN


AH-LD -- NY129 -- 3201 10/21/92 18:33 EDT
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Date:Oct 21, 1992
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