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REI ANNOUNCES COMPLETION OF LUNDY ACQUISITION

 REI ANNOUNCES COMPLETION OF LUNDY ACQUISITION
 DALLAS, March 30 /PRNewswire/ -- Recognition Equipment Incorporated


(NYSE: REC) said today that it had completed its previously announced purchase of certain of the assets of the Lundy Financial Systems Division of TransTechnology Corporation of Los Angeles. The purchase includes Lundy's reader/sorter, remittance processing, item exception and financial management systems business. The $37.8 million purchase price is subject to certain post-closing adjustments. Substantially all of the purchase price was paid in cash.
 "The addition of the Lundy Division to REI is an important strategic acquisition," said Bob Vanourek, president and chief executive officer of REI. "The addition of Lundy will provide us with a significant opportunity to pursue our stated mission to provide hardware, software and services to automate document and work processing systems to increase our clients' efficiency and effectiveness."
 REI also announced that it obtained a credit facility with a group of banks led by The First National Bank of Boston, as agent, and including First Interstate Bank of Texas, N.A., and the New York branch of the National Bank of Canada. The $25 million facility included a $15 million term loan which was used by REI to fund a portion of the Lundy purchase price, and provides a revolving credit facility for up to an additional $10 million.
 In addition, REI said that it intends to record a one-time restructuring charge of $1.5 to $2.5 million in its second quarter ending April 30, 1992, for costs incurred, or anticipated in order to effect the consolidation of operations. As a result, the company expects to record a net loss for the quarter ending April 30, 1992.
 REI, headquartered in Dallas, and its subsidiaries and divisions, including Lundy, manufacture, sell and service automated work processing systems for customers throughout the world.
 -0- 3/30/92
 /CONTACT: Larry H. Lattig of Recognition Equipment Incorporated, 214-579-6314/
 (REC) CO: Recognition Equipment Incorporated; Lundy Financial Systems ST: Texas, California IN: SU: TNM


AH -- NY102 -- 3136 03/30/92 18:28 EST
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Date:Mar 30, 1992
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