General Bearing Corporation Announces Termination of Merger Agreement

Apr 16, 2001, 01:00 ET from General Bearing Corporation

    WEST NYACK, N.Y., April 16 /PRNewswire/ --
 General Bearing Corporation (Nasdaq:   GNRL) today announced that it has
 terminated the merger agreement that it signed on January 19, 2001 with GBC
 Acquisition Corp., a company organized by a group of current directors and
 management.  This group includes Seymour Gussack, Chairman of the Board of
 General Bearing and David Gussack, General Bearing's President and a director,
 and other shareholders, who together hold a majority of the Company's
 outstanding stock.  Pursuant to the termination, the proposed merger between
 General Bearing and GBC Acquisition Corp. has been abandoned.
     According to the merger agreement, the consummation of the merger was
 conditioned upon the completion of debt financing for the transaction.  The
 financing for the transaction originally had been committed pursuant to a
 commitment letter that expired on March 31, 2001.  The prospective lender has
 indicated that in light of current business conditions, it is not willing to
 extend the commitment letter.  Each of the parties to the merger agreement has
 agreed that it is not reasonably feasible to finance the transaction given
 current business conditions.  General Bearing agreed to terminate the merger
 agreement based upon the unanimous approval of the company's Board of
 Directors, including the non-management directors.
     General Bearing manufactures ball bearings, tapered roller bearings,
 spherical roller bearings and cylindrical roller bearings.  Under "The
 General" and the "Hyatt" trademarks, the company supplies original equipment
 manufacturers in the automobile, truck/trailer, railcar, office equipment,
 machinery and appliance industries, as well as the industrial aftermarket.
 
     "Safe Harbor" statement under the Private Securities Litigation Reform Act
 of 1995: This press release contains forward looking statements that are
 subject to risks and uncertainties, including, but not limited to, the impact
 of competitive products, product demand and market acceptance risks, reliance
 on key strategic alliances, fluctuations in operating results and other risks
 detailed from time to time in the Company's filings with the Securities and
 Exchange Commission. These risks could cause the Company's actual results for
 the current fiscal year and beyond to differ materially from those expressed
 in any forward looking statements made by, or on behalf of, the Company.
 
 

SOURCE General Bearing Corporation
    WEST NYACK, N.Y., April 16 /PRNewswire/ --
 General Bearing Corporation (Nasdaq:   GNRL) today announced that it has
 terminated the merger agreement that it signed on January 19, 2001 with GBC
 Acquisition Corp., a company organized by a group of current directors and
 management.  This group includes Seymour Gussack, Chairman of the Board of
 General Bearing and David Gussack, General Bearing's President and a director,
 and other shareholders, who together hold a majority of the Company's
 outstanding stock.  Pursuant to the termination, the proposed merger between
 General Bearing and GBC Acquisition Corp. has been abandoned.
     According to the merger agreement, the consummation of the merger was
 conditioned upon the completion of debt financing for the transaction.  The
 financing for the transaction originally had been committed pursuant to a
 commitment letter that expired on March 31, 2001.  The prospective lender has
 indicated that in light of current business conditions, it is not willing to
 extend the commitment letter.  Each of the parties to the merger agreement has
 agreed that it is not reasonably feasible to finance the transaction given
 current business conditions.  General Bearing agreed to terminate the merger
 agreement based upon the unanimous approval of the company's Board of
 Directors, including the non-management directors.
     General Bearing manufactures ball bearings, tapered roller bearings,
 spherical roller bearings and cylindrical roller bearings.  Under "The
 General" and the "Hyatt" trademarks, the company supplies original equipment
 manufacturers in the automobile, truck/trailer, railcar, office equipment,
 machinery and appliance industries, as well as the industrial aftermarket.
 
     "Safe Harbor" statement under the Private Securities Litigation Reform Act
 of 1995: This press release contains forward looking statements that are
 subject to risks and uncertainties, including, but not limited to, the impact
 of competitive products, product demand and market acceptance risks, reliance
 on key strategic alliances, fluctuations in operating results and other risks
 detailed from time to time in the Company's filings with the Securities and
 Exchange Commission. These risks could cause the Company's actual results for
 the current fiscal year and beyond to differ materially from those expressed
 in any forward looking statements made by, or on behalf of, the Company.
 
 SOURCE  General Bearing Corporation