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SECOM GENERAL CORPORATION ANNOUNCES PRELIMINARY TERMS WITH INVESTOR GROUP FOR $1.9 MILLION CASH INFUSION

 LIVONIA, Mich., Sept. 24 /PRNewswire/ -- Secom General Corporation (NASDAQ-NMS: SECM) announced today that it signed a preliminary letter of intent with an investor group. Under the terms of the preliminary agreement, the investors will loan to Secom $1.5 million and provide an additional $400,000, either as a loan or in exchange for certain assets of the company, said David J. Marczak, Secom's secretary/treasurer. The total proceeds to Secom of $1.9 million will be used for working capital purposes, he said.
 In consideration for the loan, the investors will receive 100,000 shares of common stock and an option to acquire 30 percent of Secom's common stock for $2.5 million, said Marczak. In addition, the investors will receive majority board of director representation, proxies from certain shareholders so that they will have an approximate 20-percent voting block of common stock and a management agreement, Marczak continued.
 The transaction is subject to various conditions, including a due diligence review, execution of various definitive agreements covering the terms of the loan, shareholder proxies and the management of the company, said Marczak. He stated further that there are no assurances that the conditions will be met or that the transaction will be completed.
 In Secom's quarterly report on Form 10-Q for the period ended June 30, 1993, management discussed the company's working capital deficit of $1.9 million, which it said was causing, among other things, a severe strain with its critical trade vendors.
 Secom operates six subsidiaries in three areas of basic manufacturing: metal parts forming, toolmaking, and plastic molded products serving principally the automotive, trucking, consumer and construction industries.
 -0- 9/24/93
 /CONTACT: David Marczak, secretary/treasurer of Secom, 313-953-3990; or Alex Tassos & Associates, 619-748-0787, financial public relations for Secom/
 (SECM)


CO: Secom General Corporation ST: Michigan IN: MAC SU: FNC

ML -- DE014 -- 5453 09/24/93 13:38 EDT
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Publication:PR Newswire
Date:Sep 24, 1993
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