PR Newswire

                             March 15, 1985, Friday

DISTRIBUTION: TO BUSINESS DESK

LENGTH: 730 words

DATELINE: SAN ANTONIO, Texas, March 15

KEYWORD: DATAPOINT ANNOUNCES AGREEMENT WITH EDELMAN

 BODY:    SAN ANTONIO, Texas, March 15 /PRN/ -- Datapoint Corp. and Asher 
B. Edelman jointly announced today that they have reached an agreement 
under which the Datapoint board of directors will be reconstituted and 
its membership equally divided between certain members of the present 
Datapoint board and Edelman and his designees.     As part of the 
agreement, Edelman has terminated his solicitation of consents, and the 
parties will terminate all pending litigation.     Harold E. O'Kelley has 
relinquished his positions as Datapoint's chairman and chief executive 
officer and has resigned as a director. Edward P. Gistaro, current 
president and chief operating officer, was elected chief executive 
officer.  Edelman will become chairman of the board effective March 22.     
Datapoint also reported that, under the direction of its newly 
constituted board, it will continue to work with Kidder, Peabody & Co. 
Inc. to solicit and evaluate offers to purchase Datapoint's businesses.  
Edelman and Kidder, Peabody have discussed the sales strategy and 
potential values and are in total agreement about them. The company said 
that Kidder, Peabody has already received a number of proposals and 
indications of interest to purchase various parts of its business.     
Datapoint said it is conducting discussions with respect to the sale of 
its domestic customer service business which indicate valuations in 
excess of $200 million.  It has also received strong indications of 
interest for the sale of its core domestic manufacturing operations in 
excess of $100 million.  The company said Kidder Peabody is conducting 
on-going discussions with a number of prospective buyers for its 
international marketing operations.     Arbitrage Securities Co., a 
broker-dealer controlled by Edelman, will serve as joint investment 
banker with Kidder, Peabody under the agreement announced today.  The 
parties also agreed that Datapoint will reimburse Edelman for his actual 
expenses in connection with the Datapoint matter.     Datapoint also 
reported that it has completed the previously announced sale of its 
Inforex division to Recognition Equipment Inc. for $12 million.     
Gistaro stated:  "We are pleased that Edelman and his designees are 
joining our board, and that they will contribute their time and energy to 
the on-going effort to maximize the value of Datapoint for all of our 
shareholders.  We are pleased to put the controversy and litigation 
behind us and to go forward together.     "Our present expectation is 
that we will continue to pursue the sale of parts of Datapoint's 
business, revamp some of its present

                                                                       
PAGE   21                           PR Newswire, March 15, 1985                           


operations, strengthen the company's position in its markets and with its 
customers.  We are also fully committed to continuing to render first 
rate service to our customers and we intend to be sure that any 
transactions we enter into fully protect their interests.     "On behalf 
of all Datapoint shareholders we express our gratitude to Mr. O'Kelley 
for his many years of dedicated service.  We wish him well in his future 
endeavors."     Edelman stated:  "I am delighted that my associates and I 
have reached this agreement with Datapoint.  We are extremely encouraged 
by the progress that has been made to maximize values for the company's 
shareholders and we are optimistic about Datapoint's future.     "I am 
especially pleased that Mr. Gistaro will take the helm as Datapoint's 
chief executive officer.  I am impressed with his ability and dedication, 
and I am sure that his management of the company will be an essential 
part of our efforts.     Edelman added, "While I disagreed with the 
company's paying retention bonuses to its officers at this time, I do not 
intend to pursue the matter further."     Datapoint's new 12-member board 
will consist of Gene K. Beare, Evelyn Berezin, Harry G. Bowles, Edward P. 
Gistaro, Dr. George Kozmetsky, and Dr.  William C. Leone  who are 
continuing directors and Asher B. Edelman, Raymond French, Daniel R. 
Kail, Dr. Roger LeRoy Miller, Charles P. Stevenson, and Dwight D. 
Sutherland who are newly elected members.  For personal reasons William 
Karnes has resigned as a director.

   CONTACT -- Jim Fingeroth, 212-593-2655, or Lori Feinberg, 212-517-7106 
(after hours), both of Kekst and Co., for Datapoint