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PENN CENTRAL CONSIDERING POSSIBLE SPIN-OFF OF PRINCIPAL MANUFACTURING OPERATIONS

 PENN CENTRAL CONSIDERING POSSIBLE SPIN-OFF
 OF PRINCIPAL MANUFACTURING OPERATIONS
 CINCINNATI, Jan. 10 /PRNewswire/ -- The Penn Central Corporation (NYSE: PC) announced that its board of directors has authorized management to develop a plan for the possible spin-off to shareholders of Penn Central's principal manufacturing business, which consist of its wire and cable and materials handling and marine equipment operations. The spin-off would not include Penn Central's insurance and defense services businesses, or certain smaller manufacturing and energy operations. It is anticipated that, as part of any spin-off plan, Penn Central would retain debt and/or equity securities in the spun-off entity having an aggregate value exceeding $200 million.
 Carl H. Lindner, chairman and chief executive officer of Penn Central said, " This action reflects a preliminary judgment that shareholder interest will be best served by a spin-off which divides the company's operations into two separate entities. After such spin-off, Penn Central's principal focus would be on the specialty insurance operations which it has acquired over the last three years. These operations accounted for more than 75 percent of Penn Central's operating income for the first nine months of 1991 and continue to have excellent long-term growth prospects. We believe that so long as its large manufacturing businesses are part of Penn Central, the market for Penn Central stock will not give full credit to the value of its insurance operations, or of its defense services business which has provided strong and consistent earnings.
 "We also believe that, as a separate public company, these manufacturing busineses would be better positioned to realize value for shareholders from the higher earnings levels that we would expect them to produce when and as the economy improves.
 "Spinning off these manufacturing businesses will simplify Penn Central, improve its returns and permit investors to more readily evaluate its growth potential. Moreover, our objective is to build on the existing insurance base with further acquisitions in the financial services area, and Penn Central still has over $500 million of cash available for this purpose."
 Penn Central also announced that it will record an after-tax charge to fourth quarter 1991 net income currently estimated to be approximately $70 million to reflect provisions for restructuring its wire and cable operations as well as certain other charges.
 The manufacturing businesses which would be spun off consist of the electrical and electronic wire and cable manufacturing operations conducted by General Cable Company's Guardian Products Divison, Capital Wire and Cable Company and Carol Cable Company; the communications cable manufacturing operations conducted by General Cable's telecommunications division; the materials handling and marine equipment businesses conducted by Marathon LeTourneau Company; the galvanized steel wire products business conducted by Indiana Steel & Wire Company and the die and extrusion tooling business conducted by General Cable's Genca division.
 The carrying value at Sept. 30, 1991 of the businesses to be spun off was $609.5 million. These businesses had sales of $1,068.0 million and $781.4 million for 1990 and the first nine months of 1991, respectively, and operating income of $36.6 million and operating loss of $4.4 million for 1990 and the first nine months of 1991, respectively. For such periods, Penn Central as a whole had sales of $2,154.3 million and $2,024.9 million, respectively, operating income of $126.3 million and $142.4 million, respectively, and net income of $97.8 million and $63.8 million, respectively. Penn Central's total shareholders' equity at Sept. 30, 1991 was $1,589.4 million.
 Penn Central operates businesses primarily in the areas of insurance, industrial manufacturing, defense services and energy.
 -0- 1-10-92
 /CONTACT: David H. Street, senior vice president, finance, 513-579-6600/
 (PC) CO: Penn Central Corporation ST: Ohio IN: ARO INS SU:


DA -- CL011 -- 8798 01/10/92 17:22 EST
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Date:Jan 10, 1992
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