Ronson Corporation Announces Plans to Divest Aviation Division, Execution of Lender...

Ronson Corporation Announces Plans to Divest Aviation Division, Execution of
Lender Forbearance Agreement and Appointment of Chief Restructuring Officer

SOMERSET, N.J., March 30 /PRNewswire/ -- Ronson Corporation (the "Company")
announced that it has initiated plans to divest Ronson Aviation, Inc., its
wholly-owned subsidiary engaged as a fixed-base operator at Trenton-Mercer
Airport. Ronson Aviation provides aircraft fueling and servicing, avionics
sales, aircraft repairs and maintenance, hangar and office leasing and related
services.

The Company is in the process of procuring prospective purchasers so as to
maximize the value of its aviation division, permit it to satisfy outstanding
indebtedness, including to its principal lender, Wells Fargo Bank, National
Association, and provide working capital to support and focus on its consumer
products business. The Company's objective is to consummate a transaction
prior to the end of the second quarter, subject to identifying and reaching
agreement with a prospective purchaser, obtaining shareholder approval and
meeting other conditions that may be contained in definitive documentation
once negotiated.

Pending consummation of a transaction, the Company will continue to effect
cost reductions and seek sources of financing, without which the Company will
not be able to fund current operations beyond a forbearance period allowed
pursuant to arrangements entered into by the Company with Wells Fargo. The
Company's agreement with Wells Fargo establishes a moratorium through April
24, or such earlier date permitted under the agreement, during which the bank
will not assert rights relating to existing events of default. During the
moratorium, the bank will continue to provide credit advances under the
Company's revolving credit line, the maximum amount of which will be adjusted
to $2 million, in addition to a $500,000 overadvance facility. During the
moratorium, the Company will continue to be obligated for interest at the
default rate under the facility, except for interest on overadvances that
accrue at the bank's prime rate plus 8% per annum, in addition to forbearance
fees of $450,000 payable upon termination of the moratorium.

The Company does not have a commitment from Wells Fargo to extend the
moratorium beyond its current duration. The Company has previously reported
that, in the event of acceleration of its indebtedness to Wells Fargo and its
outstanding mortgage loans, as a result of existing defaults, the Company
would not have sufficient cash resources to pay such amounts. There can be no
assurance that the Company will be able to obtain an extension of its
arrangements with Wells Fargo, arrange additional financing or complete its
divestiture plans, within its anticipated timeframe or on terms acceptable to
it.

The Company also announced that it has retained Joel Getzler, of Getzler
Henrich & Associates LLC, as Chief Restructuring Officer, with responsibility
for operations, finance, accounting and related administrative issues, subject
to the authority and reporting to the Company's Board of Directors. Getzler
Henrich is a corporate turnaround and restructuring firm which, in addition to
its operational restructuring focus, is experienced in restructuring,
lender/credit relationship management and financing. Mr. Getzler will act as
Chief Restructuring Officer for the period during which Well's Fargo continues
to make revolving advances to the Company in an amount sufficient to fund the
Company's cash flow needs, or until such earlier date allowed under the
Company's agreement with Getzler Henrich. The Company will be obligated for
fees and expenses, including a signing bonus of $200,000, to Getzler Henrich
in connection with services provided by Mr. Getzler and his associates, which
will be subject to payment in weekly amounts prescribed by the agreement with
accrued amounts due upon specified events.

Ronson Corporation's operations include its wholly-owned subsidiaries: 1)
Ronson Consumer Products Corporation in Woodbridge, New Jersey, and Ronson
Corporation of Canada Ltd., and 2) Ronson Aviation, Inc., a fixed based
operation at Trenton-Mercer Airport, Trenton, New Jersey.

This press release contains forward-looking statements based on management's
plans and expectations that are subject to uncertainty. Forward-looking
statements are based on current expectation of future events. The Company
cannot ensure that any forward-looking statements will be accurate. If
underlying assumptions prove inaccurate or known risks or uncertainties
materialize, actual events could vary materially from those anticipated.
Investors should understand that it is not possible to predict or identify all
such factors and should not consider this to be a complete statement of all
potential risks and uncertainties. The Company assumes no obligation to
update any forward-looking statements as a result of future events or
developments.

SOURCE Ronson Corporation

Daryl K. Holcomb, Ronson Corporation, +1-732-469-8300