Hallwood Group Announces Proposal From HFL To Acquire All Outstanding Shares of Common Stock

 Hallwood Group Announces Proposal From HFL To Acquire All Outstanding Shares
                               of Common Stock

PR Newswire

DALLAS, Nov. 9, 2012

DALLAS, Nov. 9, 2012 /PRNewswire/ -- The Hallwood Group Incorporated (NYSE MRK
US: HWG) (the "Company") announced today that on November 6, 2012, the Company
received a proposal from Hallwood Financial Limited to acquire all of the
outstanding shares of common stock of the Company that it does not
beneficially own at a cash purchase price of $10.00 per share. Hallwood
Financial Limited, a private limited company organized under the laws of the
British Virgin Islands, is controlled by the Company's Chief Executive Officer
and members of his family. Hallwood Financial Limited owns 1,001,575, or
65.7%, of the outstanding shares of the Company.

On November 7, 2012 at the Company's regularly scheduled board of directors
meeting, a special committee, consisting of its independent directors, was
formed to consider and negotiate the proposal and to make a recommendation to
the full board of directors. The special committee is empowered to retain its
own independent legal and financial advisors to assist in its review and
negotiation of the proposed transaction. The Company's shares trade on the
NYSE MKT stock exchange under the symbol of HWG and closed on November 5, 2012
(the day prior to the receipt of the offer) at $6.00 per share.

The board of directors cautions the Company's shareholders and others
considering trading in its securities that it has only received the proposal
and that no decision has been made with respect to the Company's response to
the proposal. There can be no assurance that any offer will be accepted, that
any agreement will be executed or that the transaction contemplated in the
proposal or any other transaction will be approved or consummated. The
Company does not anticipate making any further public statements about this
matter or the activities of the special committee unless and until either it
enters into a definitive agreement for a transaction or the special committee
determines that no such transaction will be effected.

SOURCE The Hallwood Group Incorporated

Contact: Richard Kelley, Chief Financial Officer, +1-800-225-0135,
+1-214-528-5588
 
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