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MLX CORP. ANNOUNCES EXCHANGE OF PREFERRED STOCK FOR BONDS AND SENIOR DEBT AND REPLACEMENT OF ITS SUBSIDIARY SENIOR LENDER

 ATLANTA, Jan. 18 /PRNewswire/ -- MLX Corp. (NASDAQ Small Cap: MLXXC) announced today the issuance of $6 million of its $30 Par Series A Preferred Stock in exchange for $7,685,000 of its Zero Coupon Bonds (representing approximately 45 percent of the issue outstanding) and $3,203,000 of its senior debt.
 MLX will recognize an extraordinary gain of approximately $4,888,000 as a result of repurchasing this debt at less than its balance sheet carrying value. The company is continuing negotiations to exchange the remaining amounts of the Zero Coupon Bonds for additional shares of Series A Preferred Stock and currently has a letter of intent to exchange 51 percent of these bonds for stock.
 MLX also announced the refinancing of a portion of its S.K. Wellman subsidiary bank lines by a new lender. The new facility will be used to defease this subsidiary's $6.8 million IRB issues and to fund the retirement of $2.6 million face value of senior debt for approximately $2.5 million. Additionally, the new lender has agreed to provide a working capital line of credit to pay off the previous working capital lender and fund future operations.
 In a related transaction, MLX purchased the remaining outstanding minority interests in its S.K. Wellman subsidiary for a $2.6 million subordinated note. The note is subordinated to the new senior lender and will be amortized by payments from the company if operations exceed specified criteria.
 Brian R. Esher, the chairman and CEO of MLX, stated: "With these transactions, we have taken a major step toward simplifying our capital structure and lowering our overall capital costs. The cancellation of the Bonds in exchange for the preferred stock was a great opportunity for the company to replace debt with equity at a substantial discount. We are hopeful that a significant portion of the remaining Zero Coupon Bonds can be exchanged on the same terms. In addition, the refinancing of S.K. Wellman's bank debt is a major step forward in providing the capital which will better meet the long-term needs of our company."
 The MLX Specialty Friction Materials Group is a leading global designer and manufacturer of high energy friction products and components used in aircraft brakes and in clutches, brakes and transmissions for heavy duty trucks and off-highway equipment. The Group, which includes The S.K. Wellman Corp. and affiliates, serves a growing number of global Fortune 500 equipment manufacturing firms through research, manufacturing and sales facilities located in Ohio; Tennessee; Ontario, Canada; Orzinuovi, Italy, and an affiliation with Toyo Carbon in Tokyo.
 -0- 1/18/93
 /CONTACT: Theodore R. Kallgren, vice president and treasurer of MLX Corporation, 404-279-4254/
 (MLXXC)


CO: MLX Corporation ST: Georgia IN: MAC SU:

BR-CF -- AT002 -- 5720 01/18/93 08:11 EST
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Publication:PR Newswire
Date:Jan 18, 1993
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