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TECUMSEH PRODUCTS COMPANY APPROVES RECAPITALIZATION

 TECUMSEH PRODUCTS COMPANY APPROVES RECAPITALIZATION
 TECUMSEH, Mich., April 22 /PRNewswire/ -- Tecumseh Products


Company's (NASDAQ-NMS: TECU) shareholders today approved a recapitalization plan: (i) reclassifying existing voting Common Stock as Class B Common Stock; and (ii) creating a new class of non-voting Class A Common Stock.
 Following Tecumseh's annual meeting of shareholders, the board of directors declared a dividend of one share of Class A Stock on each share of Class B Stock, payable May 29, 1992, to shareholders of record at the close of business on May 8, 1992. The Class A Stock dividend will have the effect of a 2-for-1 split of the existing stock; there will be no change in the relative voting power or equity ownership of any shareholder.
 The board also amended the corporation's existing shareholder rights plan (which applies to the Class B Stock) and adopted a new, similar shareholder rights plan for the Class A Stock. The effect of these actions was to split the rights so as to conform to the new dual-class structure adopted for the corporation's stock.
 Todd W. Herrick, chief executive officer, stated that the original shareholder rights plan was adopted on Jan. 23, 1991, for the purpose of encouraging fair and equal treatment for all shareholders in the event of an attempted takeover of the corporation and that neither the adoption of the original plan nor the actions taken today were in response to any known effort to acquire control of the corporation.
 Herrick also stated that the board believed the new dual-class structure would provide the corporation with increased flexibility in connection with acquisitions, the raising of capital, and employee benefit arrangements and that it would provide shareholders increased flexibility to dispose of a portion of their equity interest in the corporation without necessarily affecting their voting power.
 The existing Class B Stock will continue to be quoted on the NASDAQ National Market System, but beginning Thursday its trading symbol will be changed to "TECUB." When new Class A Stock begins trading, it is expected to be quoted on the NASDAQ National Market System under the trading symbol "TECUA."
 Tecumseh Products Company is a global manufacturer of air- conditioning and refrigeration compressors and of gasoline engines for lawn and garden applications. 1991 sales were approximately $1.2 billion.
 -0- 4/22/92
 /CONTACT: John H. Foss of Tecumseh Products Company, 517-423-8417/
 (TECU) CO: Tecumseh Products Company ST: Michigan IN: SU: RCN


JG-SB -- DE020 -- 1360 04/22/92 14:14 EDT
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Publication:PR Newswire
Date:Apr 22, 1992
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