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MACGREGOR SPORTS AND FITNESS ANNOUNCES DISTRIBUTION AGREEMENT AND DEBT REPAYMENT

 GREENVILLE, S.C., Oct. 7 /PRNewswire/ -- MacGregor Sports and Fitness Inc. (NASDAQ: MACG) announced today that its wholly owned subsidiary, MacGregor Sports Products Inc. ("MSPI"), has entered into a five year exclusive distribution agreement with Roadmaster Corp. Under the agreement, Roadmaster will be the exclusive U.S. source for MacGregor brand sporting goods products such as baseball, football, basketball, hockey, soccer, volleyball, racquet sports and certain exercise equipment, in the retail, non-institutional channels of trade. Roadmaster will pay MacGregor a royalty on all sales. MacGregor will retain all distribution rights in the Pacific Rim in order to exploit its expertise and contacts in that area.
 "This move enables MacGregor to focus on other opportunities to develop the MacGregor brand, while leaving sales and distribution, with the requirements of a marketing force, operating expenses, and working capital to a company like Roadmaster which already sells recreational products to many of our existing and potential customers," said Michael Casazza, president of MacGregor. "MacGregor is retaining its trademark and other marketing rights and will focus on the better development of those resources, both domestically for certain fitness equipment and internationally for all of its product categories, particularly the Pacific Rim," Casazza continued.
 In connection with the Distribution Agreement, o?admaster purchased certain receivables, inventory, equipment, and other operating assets of MSPI, which enabled MSPI to retire its outstanding bank debt, with the balance to provide funds for other operating obligations of MSPI. "This transaction enables MacGregor to eliminate operating expenses and working capital costs, while still benefiting from any increased sales which Roadmaster may generate by increasing the presence of the MacGregor brand name in the marketplace," noted Casazza.
 -0- 10/7/93
 /CONTACT: Michael S. Casazza of MacGregor, 803-294-5230/
 (MACG)


CO: MacGregor Sports and Fitness Inc.; Roadmaster Corp. ST: South Carolina IN: SU: TNM

BB -- DV001 -- 1230 10/07/93 09:03 EDT
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Publication:PR Newswire
Date:Oct 7, 1993
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