Regency Affiliates, Inc. to Acquire Valley Wholesale Supply Corp.

Feb 24, 2000, 00:00 ET from Regency Affiliates, Inc.

    STUART, Fla., Feb. 24 /PRNewswire/ -- Regency Affiliates, Inc.
 (OTC Bulletin Board:   RAFF), a diversified, multi-national company announced
 that it is well along with its due diligence after signing a Letter of Intent
 to acquire Valley Wholesale Supply Corp., a California based marketer of
 picture molding, framing supplies and equipment.  The Company has
 approximately 5,000 active accounts including the Walt Disney Company and the
 County of Los Angeles.  Valley was formed in 1967 by its current owners and is
 believed to be the largest company of its type in California with new sales
 records reached in each of the last 5 years.  The terms of the acquisition
 call for Regency to pay cash, convertible stock and an earnout on a basis that
 will be antidilutive to Regency.  The principal owners have agreed to stay on
 to run the operations for 4 years.
     Regency Affiliates owns Rustic Crafts International located in Scranton,
 Pa.  Rustic Crafts is the largest manufacture of decorative fireplaces in the
 United States and Regency is actively searching for companies whose products
 enhance its existing lines such as pictures, clocks and other items to be
 displayed on or around its fireplaces.  Rustic Crafts markets its products in
 furniture stores, independent fireplace stores and through the JC Penney Co.
     Valley Wholesale Supply Corp. complements the Southwest Mill and Lumber
 Company which is also under a Letter of Intent for acquisition by Regency.
 Together they represent sales in excess of $13,500,000 and pretax income of
 approximately $850,000 which will triple the size of the home accessory
 division of Regency.
     Regency's long term business plan calls for it to focus on consumer based
 high technology companies such as the recently announced fiber optic
 telecommunication company, Knight Enterprises, balanced with accessory
 companies for the home and auto market.
     Regency's largest shareholder with 26.1% is Glas-Aire Industries Group,
 LTD.  .  Glas-Aire's largest shareholder is Regency Affiliates, Inc. with
 50.2%.  They have certain common Directors.  Mr. Ponsoldt is Chairman of both
 companies.  Regency also owns a 95% interest in the Security West Partnership,
 which in turn owns the Security West Building leased to the United States and
 occupied by the United States Social Security Administration office of
 Disability and International Operations.  The building houses approximately
 4,000 employees.
     Certain statements and information included in this release constitute
 "forward-looking statements" within the meaning of the Federal Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 involve known and unknown risks, uncertainties and other factors which may
 cause the actual results, performance or achievements of the Company to be
 materially different from any future results, performance or achievements
 expressed or implied in such forward-looking statements.  Additional
 discussions of factors that could cause actual results to differ materially
 from management's projections, forecasts, estimates and expectations is
 contained in the Company's SEC Filings.
     For further information please visit the following websites:
     CONTACT:  William R Ponsoldt, President of Regency Affiliates, Inc.,
 729 So. Federal Hwy, Ste 307, Stuart, Florida  34994, Tel. 561-220-7662, or
 Fax. 561-220-2974

SOURCE Regency Affiliates, Inc.