NEWS FLASH

PORTLAND, Ore. (RP) - Portland's downtown Willamette Park is generally a quiet, serene place. Boats of all sizes cruise by, walkers and joggers pad through the trails, and the downtown skyline twinkles in reflection on the gentle waves of the Willamette River.

This tranquillity was broken Saturday night by peals of glee at the announcement of the merger of Knauerhase Industries and Wray, Incorporated. The announcement marks the latest development in the 11-month negotiation process between the two concerns. Willamette Park has special significance to the union, having been one location visited on the date negotiations commenced.

"We are delighted to be aligned with such a vibrant, unique woman (er, company). Our mutual strengths should multiply, and both our weaknesses are counterpoised by abilities of the other," said Rob Knauerhase, president and CEO of Knauerhase Industries.

"We truly couldn't be happier. We have seen excellent potential in Knauerhase Industries over the past months, and announce the intent to merge with great joy — woo hoo!", said Karen M. Wray, executive directrix and CEO of Wray, Inc.

The merger was met with approval by family, friends, and associates of the parties involved, and a preliminary 7-month merger schedule has been filed with the Securities and Exchange Commission. The Dow was unchanged at news of the merger; diamond prices in New York, Antwerp, and Johannesburg fell on analysts' expectations of reduced demand in the coming quarter.

More information on the parties involved and the merger plan can be obtained from Rob Knauerhase, (+1-503-645-6544) or Karen Wray.

[Yes, folks, this means we're engaged!]