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SECOM GENERAL CORPORATION ANNOUNCES TRANSACTIONS TO SELL THE ASSETS OF ITS TRI-TEC PLASTICS SUBSIDIARY

 LIVONIA, Mich., Oct. 26 /PRNewswire/ -- Secom General Corporation (NASDAQ-NMS: SECM) announced today that it has reached separate agreements to sell the assets of its Tri-Tec Plastics Corporation Redding and Ontario, Calif. facilities.
 "Under the terms of the agreements, the Tri-Tec assets will be sold for approximately $2.2 million, with the proceeds used principally to pay off debts of the Tri-Tec subsidiary," said David J. Marczak, Secom's secretary/treasurer. He said that Tri-Tec will retain its accounts receivables, which are not part of the asset sale agreements, and use collections primarily to reduce associated bank line of credit debt.
 "Our preliminary estimate is that Secom will record a loss of $2.4 million, or 84 cents per share on the transaction," said Marczak. Tri-Tec's operating results will be reclassified to discontinued operations for all periods presented, he noted.
 For the nine months ended June 30, 1993, Tri-Tec recorded sales of $5,261,000 and an approximate net loss from operations of $443,100.
 "Tri-Tec's negative cash flow from operations was significant for the fiscal year ended Sept. 30, 1993. Unfortunately, Tri-Tec operates in a marketplace plagued by overcapacity and it needs substantial capital investment to continue, making the prospects for a turnaround difficult," said Marczak.
 He stated that the Tri-Tec Redding transaction has closed in escrow, pending completion of several routine matters. The Tri-Tec Ontario transaction is scheduled to close within 30 days, Marczak continued.
 "Both transactions are with industry competitors whereby they will merge the Tri-Tec assets into their existing operations," he said.
 Secom operates five subsidiaries in two areas of basic manufacturing: metal parts forming and toolmaking, serving principally the automotive, trucking, consumer and construction industries.
 -0- 10/26/93
 /CONTACT: David Marczak, secretary/treasurer of Secom, 313-953-3990; or Alex Tassos of Alex Tassos & Associates, 619-748-0787, for Secom/


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

JG-CJ -- DE007 -- 6762 10/26/93 09:22 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
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