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REVCO TO OFFER RIGHTS TO STOCKHOLDERS; NEW DIRECTOR ELECTED TO BOARD

 TWINSBURG, Ohio, Dec. 16 /PRNewswire/ -- Revco D.S., Inc. (NYSE: RXR) announced today that its Board of Directors has established terms for its previously announced rights offering, which comprises one of three parts of the company's recapitalization plan. Under the recapitalization plan, Revco intends to refinance its existing working capital credit agreement and redeem its three outstanding public debt issues with proceeds from the sale of common stock pursuant to the rights offering to stockholders, a new public issue of senior notes and new credit facilities.
 In today's actions, the Board of Directors established a subscription price of $8.00 per share and a record date of the close of business on Dec. 28, 1992.


Each stockholder will receive 0.384 transferable right for each share of Revco common stock held as of the record date. The number of rights distributed by the company to each holder of common stock will be rounded up to the nearest whole number. Rights holders are entitled to purchase at the $8.00 subscription price one share of common stock for each right held.
 Rights holders who exercise their rights in full will also have the opportunity, subject to certain limitations, to subscribe for additional shares of common stock which are not otherwise purchased by rights holders.
 Rights to purchase approximately 13,750,000 shares of common stock will be distributed. As a result, proceeds from the sale of common stock pursuant to the rights offering will be approximately $110 million.
 This news release is not an offering, which can be made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or other jurisdiction.
 Revco also announced that Rod Dammeyer, 52, president, chief operating officer and member of the board of Itel Corporation, a Chicago-based transportation, distribution and financial services company, has been selected to fill a vacancy on the Board. Prior to joining Itel in 1985, Dammeyer was senior vice president and chief financial officer of Household International, Inc., and executive vice president and chief financial officer of Northwest Industries, Inc. He is a member of the boards of directors of several other corporations and financial services organizations.
 Revco is a Twinsburg, Ohio-based company which operates approximately 1,150 drug stores in nine contiguous eastern states.
 -0- 12/16/92
 /CONTACT: Diana Lueptow of Revco D.S., Inc., 216-425-9811, ext. 6145; or investor relations, ext. 2811/
 (RXR)


CO: Revco D.S., Inc. ST: Ohio IN: REA SU: OFR PER

KK -- CL005 -- 7583 12/16/92 09:17 EST
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Publication:PR Newswire
Date:Dec 16, 1992
Words:509
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