Danzer Corporation Continues Discussions and Reaches Tentative Agreement With Obsidian Capital Partners, Ltd.

Apr 30, 2001, 01:00 ET from Danzer Corporation

    HAGERSTOWN, Md., April 30 /PRNewswire/ -- Danzer Corporation
 (OTC Bulletin Board:   DNZR) today announced that it is continuing its
 discussions and reached a tentative agreement with Obsidian Capital Partners,
 L.P. and two of its principals (collectively referred to as "Obsidian") with
 regard to a business combination with four entities controlled by Obsidian.
 At this time, the parties expect to close the transaction in May 2001.
     Danzer and Obsidian have reached a tentative agreement whereby Danzer
 would acquire from Obsidian its equity ownership in four separate operating
 companies in exchange for convertible preferred stock of Danzer representing
 80.12% of the issued and outstanding equity interests of Danzer on a fully
 diluted and as converted basis.  Obsidian Capital Partners, L.P.,
 headquartered in Indianapolis, Indiana, is a private equity leveraged buyout
 fund that specializes in buying controlling positions in small companies.
     Four companies are expected to be consolidated into Danzer:  a
 manufacturer of custom, high-end racecar transporters and specialty trailers;
 the sole supplier of reclaimed butyl rubber to the domestic tire, tape and
 tube industry in the Western Hemisphere; a leading manufacturer of specialty
 racing, cargo and ATV trailers; and a leading provider of custom high-end
 luxury entertainer coaches that are rented to a variety of customers in the
 corporate and entertainment industries.  Obsidian purchased each of the
 entities through leveraged transactions.
     Based on unaudited financial statements and estimates provided solely by
 Obsidian, on a combined basis, Danzer and its new subsidiary companies would
 have had approximately $66 million in gross sales, $8.1 million of adjusted
 EBITDA, and $1.3 million of net income on a proforma basis for the calendar
 year 2000.  Moreover, in 2001 the combined companies are anticipated to
 generate over $74 million in revenue, $9.5 million in EBITDA, and over
 $2.7 million in net income.
     Although a tentative agreement with regard to certain terms of the
 proposed combination has been reached with Obsidian, any transaction between
 Obsidian and Danzer will be subject to the negotiation, execution and delivery
 of definitive documentation, the approval of Danzer's Board of Directors, the
 satisfaction of any regulatory requirements, completion of the parties
 respective due diligence and the obtaining of any necessary approvals from
 third parties.
     None of the convertible preferred stock of Danzer proposed to be issued in
 exchange for equity securities of Obsidian has been or will be registered
 under the Securities Act of 1933, as amended, or the securities laws of any
 state and none of such securities may be offered or sold in the United States
 of America absent registration under the Securities Act of 1933, as amended,
 and any applicable state securities laws or the availability of an exemption
 from such registration requirements.  No assurance can be given that any
 definitive agreement relating to a proposed transaction among Danzer and
 Obsidian will be reached, what the material terms of any such agreement will
 be, or if the transactions contemplated in any such agreement, if reached,
 will ultimately be consummated.
 
     This press release contains "forward looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995, which can be
 identified by the use of forward looking terminology, such as "may," "will,"
 "expect," "anticipate," "estimate," or "continue" or the use of the negative
 thereof or other variations thereon or comparable terminology.  In particular,
 any statement, express or implied, concerning future events is a forward
 looking statement.  There can be no assurance that any expectation expressed
 or implied herein will prove to be correct, or that any contemplated event or
 result will occur as anticipated.  Among other factors, the uncertainties
 associated with due diligence review and negotiation of definitive
 documentation , the difficulties inherent in combining previously independent
 businesses and the uncertainties associated with economic conditions
 generally, the operations of particular businesses, and the uncertainty of
 managing leveraged entities may cause actual results to differ materially from
 those anticipated.
 
     For more information contact Mel Williams of Danzer Corporation,
 301-582-0345.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13951211
 
 

SOURCE Danzer Corporation
    HAGERSTOWN, Md., April 30 /PRNewswire/ -- Danzer Corporation
 (OTC Bulletin Board:   DNZR) today announced that it is continuing its
 discussions and reached a tentative agreement with Obsidian Capital Partners,
 L.P. and two of its principals (collectively referred to as "Obsidian") with
 regard to a business combination with four entities controlled by Obsidian.
 At this time, the parties expect to close the transaction in May 2001.
     Danzer and Obsidian have reached a tentative agreement whereby Danzer
 would acquire from Obsidian its equity ownership in four separate operating
 companies in exchange for convertible preferred stock of Danzer representing
 80.12% of the issued and outstanding equity interests of Danzer on a fully
 diluted and as converted basis.  Obsidian Capital Partners, L.P.,
 headquartered in Indianapolis, Indiana, is a private equity leveraged buyout
 fund that specializes in buying controlling positions in small companies.
     Four companies are expected to be consolidated into Danzer:  a
 manufacturer of custom, high-end racecar transporters and specialty trailers;
 the sole supplier of reclaimed butyl rubber to the domestic tire, tape and
 tube industry in the Western Hemisphere; a leading manufacturer of specialty
 racing, cargo and ATV trailers; and a leading provider of custom high-end
 luxury entertainer coaches that are rented to a variety of customers in the
 corporate and entertainment industries.  Obsidian purchased each of the
 entities through leveraged transactions.
     Based on unaudited financial statements and estimates provided solely by
 Obsidian, on a combined basis, Danzer and its new subsidiary companies would
 have had approximately $66 million in gross sales, $8.1 million of adjusted
 EBITDA, and $1.3 million of net income on a proforma basis for the calendar
 year 2000.  Moreover, in 2001 the combined companies are anticipated to
 generate over $74 million in revenue, $9.5 million in EBITDA, and over
 $2.7 million in net income.
     Although a tentative agreement with regard to certain terms of the
 proposed combination has been reached with Obsidian, any transaction between
 Obsidian and Danzer will be subject to the negotiation, execution and delivery
 of definitive documentation, the approval of Danzer's Board of Directors, the
 satisfaction of any regulatory requirements, completion of the parties
 respective due diligence and the obtaining of any necessary approvals from
 third parties.
     None of the convertible preferred stock of Danzer proposed to be issued in
 exchange for equity securities of Obsidian has been or will be registered
 under the Securities Act of 1933, as amended, or the securities laws of any
 state and none of such securities may be offered or sold in the United States
 of America absent registration under the Securities Act of 1933, as amended,
 and any applicable state securities laws or the availability of an exemption
 from such registration requirements.  No assurance can be given that any
 definitive agreement relating to a proposed transaction among Danzer and
 Obsidian will be reached, what the material terms of any such agreement will
 be, or if the transactions contemplated in any such agreement, if reached,
 will ultimately be consummated.
 
     This press release contains "forward looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995, which can be
 identified by the use of forward looking terminology, such as "may," "will,"
 "expect," "anticipate," "estimate," or "continue" or the use of the negative
 thereof or other variations thereon or comparable terminology.  In particular,
 any statement, express or implied, concerning future events is a forward
 looking statement.  There can be no assurance that any expectation expressed
 or implied herein will prove to be correct, or that any contemplated event or
 result will occur as anticipated.  Among other factors, the uncertainties
 associated with due diligence review and negotiation of definitive
 documentation , the difficulties inherent in combining previously independent
 businesses and the uncertainties associated with economic conditions
 generally, the operations of particular businesses, and the uncertainty of
 managing leveraged entities may cause actual results to differ materially from
 those anticipated.
 
     For more information contact Mel Williams of Danzer Corporation,
 301-582-0345.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13951211
 
 SOURCE  Danzer Corporation