Business Wire

                           September 26, 1983, Monday

DISTRIBUTION: Business Editors

LENGTH: 462 words

HEADLINE: AVCO/MCO; Sign letter of intent for sale of remaining Avco land 
development properties

DATELINE: LOS ANGELES

 BODY:    An agreement in principle has been reached between Avco Corp., 
Greenwich, Conn., and MCO Holdings, Inc., Los Angeles, for the sale to 
MCO of substantially all of the remaining real estate of Avco's 
subsidiary, Avco Community Development, Inc., in Southern California 
which is not already in escrow or in the final stages of negotiations or 
subject to joint venture agreements.

   The undisclosed purchase price will be paid in cash at the closing 
which is expected to take place early in 1984 following the negotiation 
of definitive documents and arrangements regarding ACD's joint ventures 
and other remaining properties and obligations.

   The transaction will be subject to the approval of the respective 
companies' boards of directors and compliance with all applicable 
regulatory requirements.

   The agreement in principle to sell Avco's remaining properties at 
Rancho Bernardo and Laguna Niguel in Southern California follows the 
announcement in late September that Avco had completed the sale of 550 
acres of coastal property at its Laguna Niguel community to the 
Stein-Brief Group, a private land development partnership based in Laguna 
Niguel, for $80 million.  If the sale to MCO is concluded in early 1984, 
Avco will have liquidated substantially all of its land development 
holdings which is consistent with the corporate objective announced by 
Avco in 1982 to dispose of certain of its business lines that did not fit 
its overall long term strategy.

   "We are very proud of the quality of ACD's new town developments at 
Rancho Bernardo and Laguna Niguel and are delighted that MCO, an 
experienced land development company, will be continuing that quality 
tradition," stated Donald K. Farrar, president of Avco Corp.

    William C. Leone,  president of MCO, said, "We are excited over the 
prospect of working with the ACD employees and with local community 
groups to complete the quality development of Rancho Bernardo and Laguna 
Niguel and to ensure a continuation of the unique lifestyle enjoyed in 
these communities which Avco has successfully brought to national 
attention."

   Avco Corp., with $2.5 billion in annual revenues, has major interests 
in financial services, propulsion systems, aerospace technology and 
management services.