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VADER GROUP REPORTS OZITE POSITION ON MERGER

 VADER GROUP REPORTS OZITE POSITION ON MERGER
 GARDEN CITY, N.Y., March 4 /PRNewswire/ -- The Vader Group Inc.


(AMEX: VDR) today announced the following:
 As previously disclosed, on Jan. 31, 1991 the company signed a letter of intent with Ozite Corporation of which the company's Chairman Peter R. Harvey is also a major shareholder, contemplating the merger of the company into Ozite by July 31, 1991, subject to the fulfillment of certain conditions. On Sept. 23, 1991 the letter of intent was extended, with certain modifications, to provide for the merger to take place before Jan. 31, 1992.
 Vader has been informed that Ozite Corporation, has been unable to identify a source of financing for the cash payment alternate under the proposed merger arrangement and does not expect to consummate the merger. Ozite has stated, in its annual report on Form 10K, that Ozite's management is in the process of proposing a plan of restructuring for Ozite which provides, among other things, for the settling of Ozite various outstanding obligations, including $2.4 million in favor of the company. These obligations are from sales of goods of about $1.2 million a loan to Ozite of $1.1 million and accrued interest of $.1 million. To date Vader has not received such proposal from Ozite, and if a proposal is received by Vader, there can be no assurance that the proposal would be acceptable to Vader. Vader has demanded that Ozite and affiliates repay all amounts due to Vader. Additionally, Vader was due approximately $4.5 million from its chairman, $2.0 million including accrued interest of $.3 million due the company in consideration of the chairman's purchase from the company of an Ozite obligation. Vader has received repayment of the $2 million of the advances and accrued interest from its chairman. Vader is establishing a reserve of approximately $5 million in respect of the amounts due Vader from Ozite and its affiliates and the remaining amount due from the chairman. The provision for such reserve will be charged against earnings in the fourth quarter of 1991. The $2 million repaid by the chairman will be used for working capital and acquisition purposes.
 The company presently does not meet all the financial and other requirements for continued listing on the AMEX and could be delisted.
 Management has reviewed a number of potential acquisition candidates during the past fiscal year. However, due to the depressed state of the economy and the unwillingness of the banking community to finance acquisitions, no transaction is proposed at the moment which management feels would be most beneficial to Vader shareholders. However, management is optimistic that a transaction will be completed during the current fiscal year.
 Vader is expecting to file its delinquent Sept. 30, 1991 Form 10K and delinquent Dec. 31, 1991 Form 10Q with the SEC by the end of the month. The annual shareholder meeting is tentatively scheduled for the end of May 1992.
 -0- 3/4/92
 /CONTACT: Alfred Ziegler vice president of the Vader Group, 516-745-0814/
 (VDR) CO: The Vader Group Inc.; Ozite Corporation ST: New York, Illinois IN: SU: TNM


SM-KW -- NY077 -- 5083 03/04/92 16:00 EST
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Date:Mar 4, 1992
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