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SECOM GENERAL CORPORATION TERMINATES AGREEMENT WITH INVESTOR GROUP FOR $1.9 MILLION CASH INFUSION

 LIVONIA, Mich., Oct. 4 /PRNewswire/ -- Secom General Corporation (NASDAQ-NMS: SECM) announced today the termination of its preliminary agreement with an investor group that called for a $1.9 million cash infusion in exchange for a stock option on 30 percent of Secom's common shares.
 "The agreement was canceled because, among other things, resolution of various conditions of the preliminary agreement could not be met," said David J. Marczak, Secom's secretary/treasurer.
 Secom has been seeking an outside investor to cure its $1.9 million working capital deficit as reported most recently in its June 30, 1993, quarterly financial statements on Form 10Q.
 "Management is already in the process of completing significant steps to improve monthly cash flow," said Marczak.
 The company said that, in addition to internal moves, it will seek other alternatives to resolve its working capital problem.
 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- 10/4/93
 /CONTACT: David Marczak of Secom General, 313-953-3990; or Alex Tassos of Alex Tassos & Associates, 619-748-0787, for Secom General/
 (SECM)


CO: Secom General Corporation ST: Michigan IN: AUT SU:

KR -- DE005 -- 8197 10/04/93 09:15 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
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