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THE HALLWOOD GROUP ANNOUNCES COMMENCEMENT OF EXCHANGE OFFER AND OFFER TO PURCHASE

 DALLAS, Jan. 22 /PRNewswire/ -- The Hallwood Group Incorporated (NYSE: HWG) today announced that it has commenced an exchange offer with respect to its original 13.5 percent subordinated debentures issued in 1989, and an offer to purchase for cash with respect to its 13.5 percent subordinated debentures issued in 1991 and 1992 as payment of interest in kind.
 The company is offering to exchange up to $45,647,600 aggregate principal amount of its new 7 percent collateralized senior subordinated debentures for all of its original series debentures, at the rate of $100 principal amount of new debentures for each $100 principal amount of original series debentures validly tendered. There is no minimum condition for the exchange offer.
 In addition, the company is offering to purchase 1991 series debentures and 1992 series debentures from each holder that tenders original series debentures for exchange, at the rate of $80 cash for each $100 principal amount of 1991 series debentures and 1992 series debentures validly tendered. The company will accept for purchase up to $200 principal amount of 1991 series debentures and up to $200 principal amount of the 1992 debentures for each $800 principal amount of original series debentures accepted for exchange.
 The new debentures will be secured by a pool of assets owned by the company, which shall initially consist of the capital stock of certain wholly-owned subsidiaries of the company and/or the company's holdings of stock of certain other companies.
 The company believes that the consummation of the offers will significantly enhance the company's liquidity, improve its financial ability to achieve its business plan and reduce its leverage and interest expense. The principal purposes of the offers are to (1) refinance the original series debentures with new collateralized debt securities having a lower interest rate and a shorter maturity than the original series debentures, and (2) repurchase the 1991 series debentures and 1992 series debentures, thereby reducing the company's aggregate outstanding leverage and annual interest expense.
 The exchange offer, offer to purchase and withdrawal rights will expire at 5:00 p.m., New York time, on Feb. 22, 1993, unless extended by the company.
 The exchange and depositary agent for the offers is The First National Bank of Boston.
 -0- 1/22/93
 /CONTACT: Mary Doyle, investor relations of The Hallwood Group Incorporated, 800-225-0135, or 214-528-5588/
 (HWG)


CO: Hallwood Group Incorporated ST: Texas IN: SU: OFR

LD -- NY077 -- 8118 01/22/93 17:50 EST
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Publication:PR Newswire
Date:Jan 22, 1993
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