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 PHOENIX, Sept. 27 /PRNewswire/ -- The Questex Group Ltd. (OTC Bulletin Board: QXGR) announced today that it has entered into a letter of intent to acquire Linwood Homes Ltd., of Delta, British Columbia, Canada. Linwood Homes is a 25-year-old, privately held designer and manufacturer of precut cedar homes. Its headquarters and factory are in Delta, which is a suburb of Vancouver. Linwood Homes has sold homes in Canada, the United States, Germany, Japan and Australia, and has sales offices or distributors in Vancouver, Calgary and Ontario, Canada and in Washington, Virginia, Louisiana, Colorado, New York, California and Maine in the United States. Linwood Homes produces, precuts, packages and ships cedar components to the customer's building site.
 Linwood Homes produced and sold more than 200 manufactured homes in 1992 and expects sales volume for 1993 to exceed $10 million CND. On a preliminary, unaudited basis. Linwood Homes had revenues of $6.2 million CND for the eight months ended Aug. 31, 1993, compared to revenues of $5.8 million CND for the same period in the previous year with total sales in 1992 of $9.6 million CND.
 Richard E. Wensel, president of The Questex Group Ltd., said, "We believe the acquisition of Linwood Homes provides Questex with an entry into an attractive new business. Homebuilders in the United States have been in a recovery for the past year and sales of new homes in many areas of the country are brisk. Much of the business experience of the Questex management team has been in real estate and development. We believe that we can assist the expansion of Linwood Homes' business into Southern California, Central Arizona and Las Vegas, Nev. among other areas in the United States. With a plant capacity which will support annual sales in the $20,000,000 to $25,000,000 range, our goal will be to increase Linwood Homes' sales force and market penetration."
 Under the terms of the proposed acquisition, Questex will acquire all of the outstanding capital stock of Linwood Homes in exchange for approximately 300,000 restricted shares of the company's common stock and payment of an undisclosed sum of money. Questex has received a verbal commitment from a private source to provide the necessary financing. The proposed acquisition is subject to a number of contingencies, including an audit of Linwood Homes' financial statements, the negotiation of a definitive purchase agreement, and obtaining sufficient funds to pay the cash portion of the acquisition price. The letter of intent contemplates completion of a definitive purchase agreement within 60 days. Ben H. Lindall, president of Linwood Homes, will continue as its president, retain its present management team and become a director of Questex.
 The principal subsidiaries of Questex are Tactile Signage Inc., Green River Coal Inc. and Skear Corp. Tactile Signage manufactures and markets custom raised letter, Braille signage that complies with Americans with Disabilities Act. Such Act was passed into law by Congress in January 1992 and requires every place of "public accommodation" to have raised letter, Braille signs placed in a specific location leading to all permanent rooms. Green River Coal owns approximately 3,700 acres of Utah state coal leases and Skear Corp. plans to develop a radio communication system for patrons of ski resorts and family/theme parks.
 -0- 9/27/93
 /CONTACT: Richard E. Wensel, 602-991-3738/

CO: The Questex Group Ltd.; Linwood Homes Ltd. ST: Arizona, British Columbia IN: CST SU: TNM

JB-EH -- LA014 -- 5909 09/27/93 11:48 EDT
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Publication:PR Newswire
Date:Sep 27, 1993

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