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RECOGNITION SIGNS LETTER OF INTENT

 RECOGNITION SIGNS LETTER OF INTENT
 DALLAS, Jan. 10 /PRNewswire/ -- Recognition Equipment Incorporated


(NYSE: REC) announced today the signing of a letter of intent with TransTechnology Corporation of Los Angeles for REI to purchase certain assets of the Lundy Financial Systems Division for $39 million, substantially all of which will be in cash. Included are the remittance processing, item exception and financial management systems businesses.
 The proposed transaction is subject to due diligence review by REI, completion of a mutually satisfactory definitive agreement and approval by the boards of directors of both companies. Closing is anticipated to be in March 1992.
 The Lundy Division, headquartered in Charlotte, N.C., designs, manufactures, sells and services document processing hardware and software used primarily by banks, utilities and insurance companies. The division has annual revenues of approximately $45 million.
 Tom Hurley, REI's vice chairman and executive vice president, stated, "The Lundy acquisition presents REI with the opportunity to significantly expand its presence in automated work processing. This combination is complementary to REI's overall strategy."
 REI anticipates funding the proposed purchase through a combination of cash on hand and borrowings.
 REI, headquartered in Dallas, and its wholly owned subsidiaries, Plexus Software, Inc. and Hybrid Systems Inc., manufacture, sell and service automated work processing systems for customers throughout the world.
 -0- 1/10/92
 /CONTACT: Larry H. Lattig of Recognition Equipment, 214-579-6314/
 (REC) CO: Recognition Equipment Incorporated; TransTechnology Corp. ST: Texas IN: CPR SU: TNM


CK -- NY023 -- 8584 01/10/92 11:05 EST
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Publication:PR Newswire
Date:Jan 10, 1992
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