MEI DIVERSIFIED CONTINUES PROGRESS IN BUSINESS SEGMENTS
MEI DIVERSIFIED CONTINUES PROGRESS IN BUSINESS SEGMENTS MINNEAPOLIS, Oct. 23 /PRNewswire/ -- MEI Diversified Inc.
(NYSE: MEI) announced continued progress in both of its business segments, medical products and professional beauty salons.
Preliminary results indicate that MEI's medical products subsidiary, New Dimensions in Medicine (NDM) continued its profit improvement through the quarter ended Sept. 30, 1992, and that the current market demand for NDM's products continues strong. As a result of the increased demand for NDM's electrode and wound dressing product lines, MEI has approved a $4.5 million capital expenditure budget to increase production capacity. Donald E. Benson, president of MEI Diversified Inc., stated "The expansion of the ClearSite(R) wound dressing production line will increase its current capacity by approximately 300 percent in 1993. The significant capacity increase is required to meet foreign distribution agreement commitments and projected increased demand in U.S. hospital and alternate care markets for 1993." Benson further stated "Although it has been a long and painful experience, MEI's professional beauty salon segment, under the leadership of its president Gary L. Hollister, has made sufficient improvement so as to make the future increasingly optimistic. Preliminary results indicate that MEI Salons will report a substantial loss for the third quarter, in part, because of one time costs incurred as a consequence of the April 1992 termination of the Management Agreement with Regis Corporation. MEI expects to ultimately recover a substantial part of MEI Salons purchase price and historical losses through a favorable outcome in its pending litigation against the sellers of The Glemby Company, Inc., and Regis Corporation and its affiliates including several officers of Regis Corporation." Benson also stated, "The company is continuing discussions with strategic investors for both its medical products and professional beauty salon subsidiaries to provide significant equity capital and augment profitability through a broader product base and greater distribution of all products. The $5.6 million regularly scheduled six month interest on MEI's publicly held 12-1/2 percent Senior Subordinated Notes and 8 percent Convertible Debentures will be paid effective Nov. 30, 1992." -0- 10/23/92 /CONTACT: James A. Cesario, vice president - controller of MEI Diversified, 612-339-8853/ (MEI) CO: MEI Diversified, Inc., New Dimensions in Medicine ST: Minnesota IN: MTC SU:
DS -- MN004 -- 4031 10/23/92 09:31 EDT
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|Date:||Oct 23, 1992|
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