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REUNION INDUSTRIES, INC.
REUNION INDUSTRIES ANNOUNCES SALE OF IRISH PLASTICS SUBSIDIARY
AND REVISED AGREEMENT TO SELL WINE GRAPE OPERATIONS
FOR INFORMATION CONTACT: FOR IMMEDIATE RELEASE
John M. Froehlich
Chief Financial Officer
412-281-2111
Pittsburgh, Pennsylvania, September 6, 2000 - Reunion Industries, Inc.
(AMEX - RUN), announced today that it has completed the sale of its Plastics
Group's Irish operations, Data Packaging, Ltd., to a subsidiary of Trend
Technologies, Inc. The sale eliminated approximately $2 million of Data
Packaging's debt and preferred stock obligations from Reunion's balance sheet,
and the Company used the net cash proceeds of approximately $11 million to
repay debt, including a portion of its senior secured and revolving credit
borrowings with Bank of America. "This was an opportunity to sell the Irish
operations at an attractive price, but Reunion expects to pursue growth
opportunities in the plastics industry in the U.S. and other markets" said
Kimball Bradley, Reunion's President.
Reunion also announced that its agreement for the sale of substantially
all of its wine grape agricultural operations and real estate in Napa County,
California has been amended to provide that the closing will occur after
completion of the 2000 harvest. In connection with this amendment, the
purchaser has increased the amount of its nonrefundable escrow deposit. The
sale is now expected to be completed by late October.
Reunion's Metals Group, through its five manufacturing divisions,
designs, manufactures and markets a broad range of metal fabricated and
machined industrial parts and products, including seamless steel pressure
vessels, fluid power cylinders, industrial cranes and structures for bridges,
leaf springs and material handling systems. The Plastics Group manufactures
high volume, precision plastics products and thermoset compounds and provides
engineered plastics services.
Reunion Industries is headquartered at 11 Stanwix Street, Suite 1400,
Pittsburgh, Pennsylvania, 15222.
This press release contains forward-looking statements as defined by
Section 21E of the Securities Act of 1934, as amended, concerning the
Company's expectations about the completion of the sale of the agricultural
operations, estimates and uses of proceeds and future investment plans, which
are dependent on future events, including events beyond the control of the
Company. Additional information on potential factors and risks that could
affect the company's future operations are contained in the Company's reports
and filings with the Securities and Exchange Commission.
