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REGAL COMMUNICATIONS PURCHASES SUBSIDIARY'S PREFERRED STOCK AT DISCOUNT

REGAL COMMUNICATIONS PURCHASES SUBSIDIARY'S PREFERRED STOCK AT DISCOUNT
 FORT WASHINGTON, Pa., Aug. 12 /PRNewswire/ -- Regal Communications Corporation (NASDAQ: RCOM) announced today that it entered into agreements to purchase the preferred stock of Thomas Fenton and Richard Kaylor, two of the three former stockholders of Synchronal Group, Inc. (now Regal Group, Inc.).
 On Sept. 1, 1992, the former stockholders will relinquish their rights to earn-out payments granted under the merger of Synchronal Group into Regal Group in September of 1991, and transfer to Regal promissory notes of Regal Group totaling $564,000 and the 55 percent of the Series A and Series B preferred stock of Regal Group, issued to them as partial consideration for the merger and having a value, at June 30, 1992, of $5,126,734. In exchange for the foregoing, the former stockholders will receive $1,925,000 in cash, 137,500 shares of Regal common stock and five year options to purchase an aggregate of 632,500 shares of Regal stock exercisable at prices ranging from $5 to $8 per share.
 Regal is currently conducting negotiations with the one remaining former Synchronal stockholder to cancel his earn-out and to purchase the remaining 45 percent of the preferred stock on the same terms as agreed to with the other former stockholders.
 Arthur L. Toll, chairman and CEO, said the purchase of 55 percent of the preferred stock at a significant discount will have a positive impact on earnings due to the reduction of preferred dividends. In addition, the elimination of a majority of the earn-out payments will further enhance Regal's earning capability.
 Concurrently with this announcement, Richard Kaylor has retired as president of Regal Group and as a director of Regal. His services will be available to the company on a consulting basis.
 Regal Communications, through its wholly owned subsidiary Regal Group, Inc., is the largest distributor of infomercials, 30-minute direct response television marketing programs. Regal also develops and markets informational and entertainment programs for the pay-per-call consumer market known as Audiotex.
 /delval/
 -0- 8/12/92
 /CONTACT: Bruce Edmondson, CFO of Regal Communications, 215-540-1190, or Lynn Morgen or Amy Ludwig of Morgen-Walke Associates, 212-986-5900, for Regal/
 (RCOM) CO: Regal Communications Corporation; Synchronal Group, Inc. ST: Pennsylvania IN: TLS SU:


SF-LJ -- PH009 -- 9301 08/12/92 09:59 EDT
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Publication:PR Newswire
Date:Aug 12, 1992
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