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PRAB REACHES AGREEMENT WITH THE STATE OF MICHIGAN

 PRAB REACHES AGREEMENT WITH THE STATE OF MICHIGAN
 KALAMAZOO, Mich., Nov. 5 /PRNewswire/ -- On Oct. 30, 1992, Prab


Robots, Inc. ("Prab") (NASDAQ: PRAB) and the State of Michigan consummated a restructuring of the $5,185,000 debt owed by Prab to the State of Michigan Retirement Systems ("SMRS"). Under the terms of the restructuring, Prab paid $400,000 in cash, and issued a new $2,485,000 long-term note, to SMRS. Also, SMRS converted the $2,300,000 balance of its debt into three different classes of Prab stock. Earlier that same day, at a special meeting of the shareholders of Prab, the restructuring with SMRS and the authorization of new stock to consummate the transaction were overwhelmingly approved.
 According to Prab's president, Gary A. Herder, the restructuring will have a very positive impact on the financial condition of Prab, increasing Prab's net worth by $2,300,000 and reducing its debt by $2,700,000. In addition, Prab's scheduled payments to SMRS have been reduced and extended over a seven-year period. Herder also commented that the restructuring eliminates Prab's default status with SMRS and should play a significant role in removing any doubts that Prab's customers and suppliers may have regarding Prab's long-term viability.
 -0- 11/5/92
 /CONTACT: Robert Klinge, controller, Prab Robots, Inc., 616-382-8200/
 (PRAB) CO: Prab Robots, Inc.; State of Michigan ST: Michigan IN: CPR SU: RCN


JG -- DE025 -- 7772 11/05/92 13:42 EST
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Publication:PR Newswire
Date:Nov 5, 1992
Words:240
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