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MEI DIVERSIFIED ISSUES STATEMENT

 MINNEAPOLIS, Sept. 16 /PRNewswire/ -- MEI Diversified Inc. announced today that LaSalle National Bank, Chicago, has notified MEI that it has elected to terminate the discretionary $10 million debtor-in-possession loan facility (LaSalle facility) which was entered into between LaSalle and MEI in April 1993.
 LaSalle stated in its notice that MEI is in violation of the loan covenant that prohibits MEI from exceeding a specific level of consolidated pre-tax net operating losses in its beauty salon business, MEI Salon Corp. and Subsidiaries, for the period Jan. 1, 1993 to June 30, 1993.
 Donald E. Benson, president of MEI, stated that the LaSalle facility had not been utilized by MEI Salon Corp. and there is no current plan to seek a replacement loan facility.
 MEI previously announced on Aug. 18, 1993 that it received Bankruptcy Court approval to sell substantially all of the assets of MEI's beauty salon subsidiaries to Magicuts U.S.A., Inc. The proposed sale is subject to the parties' agreement to a final purchase agreement. A late September 1993 closing on the salon asset sale is anticipated.
 -0- 9/16/93
 /CONTACT: Donald E. Benson, president of MEI Diversified, 612-339-8853/


CO: MEI Diversified Inc. ST: Minnesota IN: SU:

KH-DB -- MN017 -- 2880 09/16/93 18:00 EDT
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Publication:PR Newswire
Date:Sep 16, 1993
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