AM International Inc. announces new AM Multigraphics president and nonbinding letter of intent to sell shares of its Japanese subsidiary

Business Wire, August 12, 1996

ROSEMONT, Ill.--(BUSINESS WIRE)--Aug. 12, 1996--AM International Inc. (ASE:AM) Monday announced that its board of directors has appointed Thomas D. Rooney as president of its AM Multigraphics Division, located in Mount Prospect, Ill.

Mr. Rooney has served in a number of capacities with AM International and its subsidiaries over his 22-year career with the company, and retains his current positions of vice president and chief financial officer of the company in addition to the new responsibilities.

AM International Monday also announced that it has executed a nonbinding letter of intent with JAC Co. Ltd., a Japanese marketing firm, for the sale of the 2,148,000 shares of AM Japan Co. Ltd., owned by AM International. AM International owns approximately 66.3 percent of the outstanding shares of AM Japan.

For the year ended July 31, 1995, AM Japan had net income of $400,000 on revenues of $34 million.

The letter of intent contemplates a tender offer for the shares of AM Japan at a price of 575 yen per share (or approximately $5.33 per share at current exchange rates).

The consummation of the transaction is subject to JAC Co.'s continuing due diligence, the execution of a definitive agreement and certain other conditions. The purchase price may be amended by the parties based upon the results of JAC Co. due diligence.

The letter of intent contemplates that the parties will work toward the negotiation and execution of a definitive purchase agreement in late August and a closing in late September. AM Japan would continue as a distributor of AM International's products. There can be no assurance that a definitive agreement can be reached or that a transaction will be consummated.

AM International has retained the services of Yamaichi Securities Co. Ltd. in connection with the proposed sale of the shares of AM Japan.

The stock of AM International, which has corporate headquarters located in Rosemont, is traded on the American Stock Exchange under the ticker symbol ``AM.''

CONTACT: AM International Inc., Rosemont

Thomas D. Rooney, 847/375-1800