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MAIL BOXES COAST TO COAST INC. ANNOUNCES RESTATEMENT OF FINANCIAL STATEMENTS

 MAIL BOXES COAST TO COAST INC. ANNOUNCES
 RESTATEMENT OF FINANCIAL STATEMENTS
 LOS ANGELES, Sept. 18 /PRNewswire/ -- Mail Boxes Coast to Coast Inc. (NASDAQ: NATK) today announced that as a consequence of discussions with the Securities and Exchange Commission and the Alberta Securities Commission, it has restated the historic financial statements of one of its principal subsidiaries, North American Technologies Inc. ("NAT"). The restatement has been undertaken in order to more properly conform with generally accepted accounting principles ("GAAP"), the accounting treatment accorded a business transaction between NAT and Drexel Oilfield Services Inc. ("Drexel") during December 1991.
 The Drexel transaction involved a sale of 50 percent of certain of NAT's drilling technologies in return for a receivable of $5,000,000, which Drexel would satisfy by providing NAT with usage of its drilling equipment and other heavy industrial machinery at no charge. In effect, the Drexel transaction provided NAT with $5,000,000 of rental credits on machinery and equipment used in its business.
 The Drexel transaction had been reflected as a sale of certain specific rights to use of technologies in its historic financial statements, with gain on sale and an asset recognized to reflect the value of the receivable.
 A spokesman for the company stated, "Although we believe the Drexel transaction provides the company with a valuable asset in the form of $5,000,000 of equipment rental credits, the regulators do not apparently believe that it is appropriate under GAAP to reflect the transaction as a sale. Nor do they believe that the transaction creates an asset on NAT's Balance Sheet. Furthermore, although the company had been advised by respected accounting sources that the company's accounting treatment was supportable under GAAP, in order to avoid any further regulatory controversy, we have elected to accede to the wishes of the regulators.
 "We remain firmly in support of the business aspects of the Drexel transaction, as it provides the company with the full usage of valuable industrial machinery and equipment that the company would otherwise have to purchase or lease."
 The effort of the restated financial statements of NAT will be reflected on an Amended Report on Form 10-Q to be filed shortly by the company for the quarter ended June 30, 1992. Management anticipates, however, that the effect will be to reduce consolidated assets by $5,000,000 and to eliminate the gain on sale of $5,000,000.
 -0- 9/18/92
 /CONTACT: Thom Robinson or John Parrott of Mail Boxes Coast to Coast, 517-773-7050/
 (NATK) CO: Mail Boxes Coast to Coast; North American Technologies Inc. ST: California IN: REA SU:


EH-JL -- LA020 -- 1303 09/18/92 17:06 EDT
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Publication:PR Newswire
Date:Sep 18, 1992
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