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MEI OFFICERS AND DIRECTORS NAMED IN CLASS ACTION SUIT

 MINNEAPOLIS, April 5 /PRNewswire/ -- MEI Diversified Inc. (MEI) announced today that certain of its officers and directors were named as defendants in a class action complaint filed in United States District Court for the District of Delaware. The suit was brought on behalf of a certain purchaser of MEI common stock and seeks to be certified as a class action.
 Named as defendants were the following officers and directors of MEI: Carl R. Pohlad, chairman of the board of directors; Donald E. Benson, president and director; James O. Pohlad, formerly treasurer; and James A. Cesario, vice president - controller. The lawsuit seeks unspecified damages and alleges violations of federal securities laws and negligent misrepresentation in connection with public statements about MEI's financial condition. The defendants believe that the claims are without merit.
 MEI previously announced that it and its principal United States beauty salon operating subsidiaries, including MEI Salon Corp., Essanelle Salon Co. and Maxim's Beauty Salons, Inc. have each filed separate petitions for Chapter 11 protection in the United States Bankruptcy Court, District of Delaware. According to the complaint, MEI was not named as a defendant because of its Chapter 11 filing.
 Donald E. Benson stated that the bankruptcy filings are substantially the result of unprofitable operating results of the salons acquired in 1990 from the Finkelstein family, Regis Corporation and Myron Kunin. In May 1991 MEI filed suit against the former shareholders of The Glemby Company, Inc. for violations of federal securities laws and racketeering laws, common law fraud, misrepresentation and breach of contract in connection with the sale of The Glemby Company, Inc. to MEI. In May 1992 MEI filed suit against Regis Corporation, its chairman Myron Kunin, its president Paul D. Finkelstein and certain of its executives claiming that Regis and the other defendants are guilty of fraud, racketeering, contract violations and mismanagement in the sale and subsequent operation of The Glemby Company, Inc; Essanelle Salon Co.; and Maxim's Beauty Salons. Each case should proceed to trial as permitted by the calendar of the respective courts.
 -0- 4/5/93
 /CONTACT: James Cesario of MEI, 612-339-8853/


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

AL -- MN012 -- 3220 04/05/93 17:26 EDT
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Publication:PR Newswire
Date:Apr 5, 1993
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