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

DATE: TUESDAY, May 10, 1994                   TAG: 9405100128
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: By MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

MERGER TALKS RESUME

ETS International Inc., a Roanoke company specializing in pollution-control products and services, said Monday it has resumed negotiations to acquire three related companies.

John D. McKenna, chairman and president of ETS, declined to identify the companies it may buy. But he said negotiations are "moving on a relatively fast timetable." He estimated that the mergers might come about in a "couple of months."

ETS said in January 1993 it had a letter of intent for the acquisition and that closing of the deal depended on resolution of one issue. The negotiations had been held in suspense "due to one outstanding problem which recently has been resolved," the company said, without providing any details.

It identified the target acquisitions as three affiliated firms in the infrastructure, solid waste management and related construction service business. ETS said the three firms currently have combined annual revenues of about $12 million.

ETS reported revenues of $4.2 million and a net loss of $685,808, or 8 cents per share, for its most recent fiscal year, ended May 31, 1993.

ETS first announced the acquisition plans Jan. 13, 1993, when the company said it had received a signed letter of intent to accomplish the merger.

The release in January 1993 said the three firms at that time had combined annual revenues of about $10 million.

ETS said then and repeated Monday that consummation of the acquisitions required mutual agreements on details of the definitive agreements. The company said it could give no assurances that the acquisition will be consummated.

"I am very pleased that the negotiations are back on track since I believe there are true synergisms for all parties involved," McKenna said.

He said earlier that the merger would benefit both parties "in that it allows the companies to achieve technical and business goals on a cooperative basis."

ETS International stock trades on the American Stock Exchange. It closed Monday at $1.683/4 a share, up 1/4 of a cent with trading of 7,800 shares.

by CNB