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MLX CORP. ANNOUNCES FINAL SIGNING OF LETTER OF INTENT FOR $170 MILLION DEBT REDUCTION ANNOUNCED ON FEB. 12

 MLX CORP. ANNOUNCES FINAL SIGNING OF LETTER OF INTENT
 FOR $170 MILLION DEBT REDUCTION ANNOUNCED ON FEB. 12
 STONE MOUNTAIN, Ga., Feb. 20 /PRNewswire/ -- MLX Corporation (OTC: MLXX) today announced it had received approval from the final lender (an overseas banking institution) for a transaction that would result in the reduction of MLX's consolidated debt by approximately $170 million.
 The first step of this transaction is the sale of all operating assets of Pameco Corporation (which is the holding company for the operating subsidiaries of MLX's RAC GROUP), to a consortium of investors represented by Three Cities Research Inc. (TCR). The second step in the transaction is Pameco's payment of all such sale proceeds to the RAC GROUP lenders in exchange for the forgiveness of the RAC GROUP debt and MLX guarantees of RAC GROUP debt; the extension of the term and reduction of the interest rate on the MLX zero coupon bonds, and the restructuring of certain other MLX debt.
 A Letter of Intent had been entered into among MLX, the MLX senior lender, RAC GROUP buyers, and the RAC GROUP lenders. Final approval of the Letter of Intent was delayed by one of the lenders, an overseas bank, which needed to review and approve the terms and conditions. Today, this last party signed, thus completing this important step in the transaction.
 Consummation of the transaction is subject to and contingent upon approval of any necessary filings, completion of the definitive purchase agreement, the absence of any material change in the RAC GROUP and final closing.
 In announcing this development, Brian R. Esher, chairman, president and CEO of MLX, commented: "The approval by our overseas lender finalizes the Letter of Intent we entered last week. We can now proceed with completing this important transaction on an accelerated basis. Closing is expected within a few weeks. These new capital structures (as described previously by MLX and TCR) should provide financial strength for both companies to expand and prosper."
 MLX RAC GROUP (Pameco Corp.) is the largest nationwide distributor of commercial and residential air conditioning, heating and refrigeration equipment, parts and supplies. The group serves some 70,000 customers through over 280 wholesale outlets and distribution centers known as The Graves Group, Melchior/Armstrong/Dessau (Melco), National Temperature Control Centers (NTCC), Thermal Company, R&R Supply, Thermal Supply, Westbrook Distributing, and Pameco-Aire.
 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 SinterMet Corporation, 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- 2/20/92
 /CONTACT: Theodore R. Kallgren, vice president - Finance of MLX Corp., 404-939-5910/
 (MLXX) CO: MLX Corporation; Three Cities Research Inc.; Pameco Corporation ST: Georgia IN: SU:


BR-BN -- AT017 -- 1039 02/20/92 15:05 EST
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Date:Feb 20, 1992
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