Exhibit 2.
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                                 NEWS RELEASE



FOR RELEASE (8/15/97) AT 6:30 AM EDT
- ------------------------------------
Contact:  Kenneth W. Kramer, Vice President, Development and Operations
          Gary S. Borman, Vice President, Corporate Controller
          Vicki C. Harvell, Executive Assistant
          Matthews Studio Equipment Group
          (818) 525-5200


                       MATTHEWS STUDIO GROUP EXPANDS ITS
                        CREDIT FACILITY TO $50 MILLION


     BURBANK, CA (August 15, 1997) . . . . Matthews Studio Equipment Group
(Nasdaq NM:MATT), a Burbank-based single source supplier of grip, lighting and
video equipment and related supplies to the entertainment production industry,
today announced the signing of an amended and revised five year credit facility
with The Chase Manhattan Bank.  The new credit facility expands Matthews'
borrowing potential from $21 million to $50 million.

     The expanded credit facility continues Matthews' strong relationship with
The Chase Manhattan Bank, provides funds allowing Matthews to continue its
strategic growth and diversification strategy, and allows Matthews to reduce its
effective borrowing rate by (i) paying-off $5 million of subordinated debt that
has a higher rate of interest, and (ii) reducing the borrowing rate on the
credit facility itself.  The expanded credit facility includes various sub-
limits for specific issues, including funds for future acquisitions, Matthews
security repurchases and letters of credit.

                                  (continued)

 
MATTHEWS ENHANCED CREDIT FACILITY                       August 15, 1997
Page -2-

     According to  Mr. Carlos D. DeMattos, Matthews' Chief Executive Officer and
Chairman, "The  new and expanded credit facility will (i) better allow the
Company to attain its goals and objectives, (ii) continue its strategic
expansion and diversification strategy, and (iii) provide Matthews with the
flexibility to fund growing working capital requirements, purchase new
equipment, pay off other debt (e.g., subordinated debt), buyout capital leases
and fund future acquisitions, all at more favorable terms than the Company's
previous credit facility."

Safe Harbor statement under the Private Securities Litigation Reform Act of
1995:

  Statements in this news release looking forward in time involve risks and
  uncertainties, including customer order rates, order cancellation rates, late
  delivery of equipment purchases that could cause subrental costs to increase,
  dependence on certain customers, dependence on key executives, variability of
  quarterly results, competition, product liability risks, control by
  management, fluctuations in film production activities, limited trading market
  and volatility of stock prices, and other risk factors detailed in the
  Company's Securities and Exchange Commission filings.
 
     Matthews Studio Equipment Group designs, manufactures, sells and rents
grip, camera (film and video), and lighting support equipment, and related
supplies for the film, television, commercial photography and theatrical
production industries worldwide.


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