
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, February 12, 1994                   TAG: 9402120060
SECTION: BUSINESS                    PAGE: A-4   EDITION: METRO 
SOURCE: SANDRA BROWN KELLY
DATELINE:                                 LENGTH: Short

LITTLEFIELD ENDS SOURED HEALTH DEAL

Littlefield, Adams & Co., owner of Collegiate Pacific in Roanoke, said Friday it has rescinded a marketing agreement with Americare Health Group Inc. and has asked Americare to return $700,000 to three investors, two of whom are from the Roanoke Valley.

Curtis A. Younts Jr., president of the San Antonio, Texas-based company, said Friday he couldn't get financial data from Americare.

Last year, Americare got first-refusal rights to market Littlefield's health products for 25 percent of Americare's stock. The Roanoke Valley investors, who Younts wouldn't identify, put money in Americare because of Littlefield's involvement.

Younts also said the health-care products Americare could have sold have not developed.

Littlefield confirmed it has been under investigation since July by the Securities and Exchange Commission for its stock trading and reporting practices in the deal. The agency has questioned a contract to supply wheelchair cushions to the Veterans Affairs Department.

Littlefield's main business is screen printing knitwear at plants in Roanoke and in Dayton, Ohio.

Littlefield stock halted trading Tuesday after dropping almost $7 a share, from a record high of $27.87 1/2, in a week. The drop came after a CNBC report outlining the company's problems. The stock closed Friday at $16.37 1/2 a share.

by CNB