Pallet Management Systems Inc. signs letter of intent to acquire Abell Industries

Business Wire, May 16, 1995

BOCA RATON, Fla.--(BUSINESS WIRE)--May 16, 1995--Pallet Management Systems Inc. (PMSI) (NASDAQ/BB:PALT) Tuesday reported it has signed a letter of intent to purchase Abell Industries through an exchange of stock.

The Lawrenceville, Va., based Abell Industries is a profitable private company in the pallet manufacturing and services business with annual sales last year of $17.9 million.

The proposed acquisition is part of PMSI's strategic plan to become a national full service pallet company, moving PMSI into a leadership position in the $6 billion pallet industry. The combined company's sales for fiscal year 1995 are estimated to be over $27 million.

Privately held Abell Industries, founded in 1966, is a pioneer in the pallet industry. The company has assets of more than $5.5 million with operations and headquarters in Lawrenceville and a pallet repair depot in Petersburg, Va. The company specializes in the manufacture of new pallets and is a supplier to both regional and national companies.

President of Abell Industries, John Lucy III, stated: "This transaction creates an entity which is a major advance in the process of consolidating the highly fragmented pallet industry. Abell's operations fit geographically with PMSI's existing facilities to establish a powerful network to service the combined customer base."

Zachary Richardson, president of PMSI, added: "This acquisition proves the validity of our growth strategy as it will make us one of the largest pallet companies in North America. Abell's reputation as a pioneer and innovator in the pallet industry is a valuable asset to PMSI."

PMSI is the first United States based publicly traded pallet company in the more than $6 billion U.S. pallet market. The company is a leader in pallet management and recycling with operations along the East Coast of the United States and is currently in the process of expanding nationally.

CONTACT: Radcliffe & Associates Inc., New York

Donald Radcliffe, Investor Relations

212/605-0100

or

Pallet Management Systems Inc., Boca Raton

Zachary M. Richardson, President

407/338-7763