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PRIVATE PLACEMENT COMPLETED FOR CULTURAL EXCHANGE CORP.; FIRST AFRICAN-AMERICAN FULL-LINE TOY COMPANY SIGNS WITH TOYS 'R' US

 MINNEAPOLIS, Oct. 14 /PRNewswire/ -- Cultural Exchange Corporation, the new Minneapolis toy manufacturer that targets the growing African- American, Hispanic, and multicultural consumer groups to buy its Cultural Toys(TM) and other products, has successfully completed a private placement offering of 1.05 million shares at $2 per share, raising $2.1 million including a $100,000 over-allotment, to local and national investors. The maximum allotment of $2.3 million has been sold with the balance to be closed imminently.
 Cultural Exchange Corporation is headed by former Tonka Senior Operations Director Jacob Miles III. The underwriting was conducted by R.J. Steichen & Company, a Minneapolis-based investment banking firm. Accounting services are provided by Price Waterhouse to audit company records and provide other services based on its expertise and strong presence in Hong Kong. Norwest Banks is providing CEC's line of credit and other banking services through both its domestic headquarters in Minneapolis and its branch in Hong Kong.
 Cultural Exchange Corporation is the nation's first African-American owned full-line toy company.
 "The response from the investing public and the investment community was overwhelming," stated James J. Chica, investment banker, R.J. Steichen & Company, which handled the offering.
 "Cultural Exchange Corp. addresses the product needs of an untapped niche in a huge market," said Chica. "We've had toy analysts look at the numbers and come away very excited. With the proceeds of this offering, Jacob Miles III and CEC are well-positioned for the future, and we will be there to assist in planning the company's next round of financing well in advance of the need."
 Major retailers Toys 'R' Us and Dayton-Hudson's Dayton's, Marshall Fields, Hudson's and Target Stores are carrying Cultural Toys products nationwide. The company expects substantial future growth based on a very strong response from toy retailers, initial customer response, and new product lines to be introduced at the 1994 International Toy Fair.
 "Toys 'R' Us is anxious to do more business with minority-owned companies and we're pleased to be a major distributor of Cultural Toys," stated Michael Goldstein, vice chairman of Toys 'R' Us, the nations' largest toy retailer which sells nearly a quarter of all toys sold in the United States.
 CEC is in varying stages of signing with additional distributors. K-Mart, Kay Bee Toys, and Wal-Mart have all expressed an interest and are working to finalize their initial orders.
 Tom Hay of Dorsey & Whitney's Emerging Growth Company division and legal counsel to the company, said "The Cultural Exchange concept of creating products specially designed for various ethnic groups is right for the times, and Jacob Miles and his associates seem uniquely qualified to implement it."
 An African-American with twenty years' experience working on the operations side for some of the nation's largest toy manufacturers, Miles brings unique credentials to an industry in which new companies are typically headed by marketing executives.
 Due to the dynamic nature of the toy industry, and Miles' reputation and exposure within it, CEC is being presented with new growth opportunities regularly, according to CFO David Koenig, "As we contemplate our strategy u?rsuing new opportunities, the company is meeting with national investment banking firms to familiarize them with the company's plans, personnel, strengths and resources so that we will be positioned to respond quickly when additional capital is needed," said Koenig.
 -0- 10/14/93
 /CONTACT: Jacob R. Miles of Cultural Exchange, 612-332-7000, ext. 336; or Joshua Kohnstamm of Susan Stuart-Otto PR, 612-228-9141, for Cultural Exchange/


CO: Cultural Exchange Corp. ST: Minnesota IN: REA SU:

CP-DB -- MN024 -- 2501 10/14/93 18:14 EDT
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Date:Oct 14, 1993
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