INVESTORS TO RAISE CYCLOPS &lt;CYL> TENDER PRICE

  Cyacq Corp, an investor group
  bidding for Cyclops Corp, said it would raise its outstanding
  tender offer price for Cyclops common to 92.50 dlrs a share
  from 80 dlrs, if certain conditions were met.
      The increased offer would exceed the 90.25 dlrs a share
  price offered by Dixons Group PLC in a tender offer for Cyclops
  that is part of a definitive agreement to acquire the
  Pittsburgh-based maker of carbon tool and specialty steel
  products.
      Cyacq includes Audio/Video Affiliates Inc and Citicorp
  Capital Investors Ltd and other investors.
      Cyclops has about 4.1 mln shares outstanding.
      For the tender price to be raised, Cyclops must provide
  Cyacq with all non-public information provided to Dixons Group
  and Cyacq must be satisfied with financial projections made in
  offering material by Dixons based on the information, Cyacq
  said.
      Additionally, Dixon Group's rights to buy Cyclops common
  and its rights to fees or expenses if the Dixon-Cyclop merger
  agreement is broken must be rescinded, Cyacq said.
      Cyacq said financial projections it developed for Cyclops
  were materially lower than the financial projections provided
  by Cyclops to Dixons Group.
      A Cyclops spokeswoman said the company had no details of
  the new Cyacq proposal and could not comment. "We have nothing
  in hand," she said.
      In addition to making specialty metal products, Cyclops
  also operates about 115 specialty stores that sell consumer
  electronics products. The stores are located in 17 states
  concentrated in the Northeast, Northwest and Southwest.
      Cyclops employs about 8,900 people in Pennsylvania, Ohio
  and other states. It also has interests in non-residential
  construction.
      In 1986, Cyclops earned 21.3 mln dlrs or 5.26 dlrs a share
  on sales of 1.5 billion dlrs, compared to 1985 earnings of 26.2
  mln dlrs or 6.20 dlrs on sales of 1.4 billion, the spokeswoman
  said.
      The agreement with Dixons Group calls for Cyclops's steel
  and construction businesses to be sold to a unit of Alleghany
  Corp &lt;Y> for about 110 mln dlrs once the merger is completed.
      A Cyacq spokesman said the new conditional tender price
  would be all cash. He had no comment on whether Cyacq plans to
  withdraw its current offer, which is scheduled to expire
  midnight on March six.
      Dixon Group's offer extends to March 17.
  

