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MEAD SELLS UNIT; ANNOUNCES WRITEOFFS AND ADOPTION OF FASB 106

 MEAD SELLS UNIT; ANNOUNCES WRITEOFFS
 AND ADOPTION OF FASB 106
 DAYTON, Ohio, Jan. 15 /PRNewswire/ -- Mead Corporation (NYSE: MEA) announced today that it has sold Micromedex, Inc., to a U.S. subsidiary of The Thomson Corporation, which will operate the company under its Medical Economics Data company. Micromedex is a wholly owned medical information subsidiary of Mead Data Central, Inc., Mead's electronic publishing business. According to Mead, the sale results in an after-tax gain of approximately 45 cents per share.
 Micromedex, based in Denver, provides databases of information on drugs, poisons and emergency care to health care professionals. The company was acquired by Mead Data Central in 1985. It has grown rapidly by providing its services on compact discs, microfiche and mainframe tapes throughout the world.
 "While Micromedex is an outstanding company, it is not at the core of the strategic direction of Mead Data Central's information services business and will have more synergy as part of a medical information provider," according to Jack W. Simpson, president of Mead Data Central.
 The Thomson Corporation is a leading newspaper, specialized information and publishing and leisure travel group, operating primarily in North America and the United Kingdom.
 In addition, Mead announced a number of nonrecurring fourth quarter charges totalling 54 cents per share against 1991 earnings. These charges are:
 -- 17 cents per share to increase reserves for Mead's discontinued reinsurance business, which has been in runoff since 1986;
 -- 15 cents per share to cover costs of safeguarding landfills to meet environmental requirements;
 -- 13 cents per share to cover the charges associated with
 consolidations within some business units; and
 -- 9 cents per share to cover engineering costs previously incurred.
 The company also announced that it has elected early adoption of FASB Statement 106, a new rule regarding accounting for liabilities of retiree benefit programs. This resulted in a charge, primarily for health care benefits, of $1.00 per share against first quarter 1991 earnings. The company's first quarter 1991 results will be restated to reflect this charge.
 The company estimates that 1991 earnings would have been $1.21 per share, subject to audit, prior to recording the Micromedex sale and these adjustments. Mead expects to release 1991 earnings on Jan. 23.
 -0- 1/15/92
 /CONTACT: Sharon Williamson of The Mead Corporation, 513-495-3535/
 (MEA) CO: Mead Corporation ST: Ohio IN: PAP SU:


KK -- CL004 -- 9865 01/15/92 09:15 EST
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Publication:PR Newswire
Date:Jan 15, 1992
Words:398
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