MATTHEWS ACQUIRES KEYLITE PRODUCTION SERVICES AND ITS AFFILIATES

BURBANK, Calif., May 26 /PRNewswire/ -- Burbank-based Matthews Studio Equipment Group (NASDAQ: MATT) ("Matthews") and its rental subsidiary, Hollywood Rental Co. Inc. ("HRC"), announced the acquisition of Keylite Holdings Inc. and its affiliates, Keylite Production Services Inc., Reel Wheels Inc. and Keylite PSI Phoenix Inc. (collectively "Keylite"), through the exchange of all of the outstanding stock of Keylite Holdings Inc., for 1,400,000 restricted shares of Matthews common stock. Management believes that Keylite and HRC were two of the largest non-studio rental companies in North America. Keylite was one of HRC's most significant competitors in the Los Angeles and Southwest rental markets. HRC's combined rental inventory now consists of approximately 150,000 pieces of equipment plus vehicular equipment and production vans. HRC together with Keylite is able to provide the U.S. production industry with cable and distribution equipment that meets the requirements of the National Electric Code. Matthews management believes that this transaction has made HRC a more prominent rental company with an increased ability to provide quality services to the entertainment production industry. This acquisition will provide HRC with economies of scale and sufficient equipment to enable it to increase its rental customer base. Matthews Studio Equipment Group designs, manufactures, sells and rents grip, camera and lighting support equipment and proprietary electromechanical Cam-Remote(R) Systems for the film, television, commercial photography and theatrical production industries worldwide. -0- 5/26/93 /CONTACT: Gregory Moiseeff or Neil Kaplan of Matthews Studio Equipment Group, 818-843-6715/