EXHIBIT 3

                                                             NEWS RELEASE




FOR RELEASE 4/3/98 at 4:00 PM (EST)
- -----------------------------------
Contact:  Robert M. Johnston, Vice President, or
          Kenneth W. Kramer, Vice President, Development & Operations, or
          Gary S. Borman, Vice President/Corporate Controller
          Matthews Studio Group
          (818) 525-5200

                     MATTHEWS ANNOUNCES ITS ACQUISITION OF
                            FOUR STAR HOLDING, INC.,
                 AND EXPANDS ITS CREDIT FACILITY TO $80 MILLION
                                        
                                        
     BURBANK, CA (April 3, 1998) . . . Matthews Studio Equipment Group (NASDAQ
NM:MATT), a Burbank-based single source supplier of lighting and grip equipment,
video and film cameras, and related supplies to the live entertainment, motion
picture production, corporate and commercial photography industries, today
announced the consummation of its acquisition of privately-held Four Star
Holding, Inc., and its wholly-owned subsidiary Four Star Stage Lighting, Inc.
(collectively "Four Star"), of New York, New York.  The acquisition expands
Matthews' rental operations in New York and adjacent markets, provides strategic
access to New York theatrical and other East coast theatrical rental markets,
and complements Matthews' theatrical equipment rental and related equipment and
expendable sales operations currently based in Hollywood, California.
Concurrent with this transaction, Matthews expanded its credit facility from $50
million to $80 million.

 
     This transaction, which is structured as a stock purchase, is valued at
approximately $29 million, payable in cash and assumption of certain long-term
liabilities.  Four Star's Darren DeVerna will be appointed President of Four
Star Stage Lighting, Inc., with headquarters to remain in New York.   The
balance of the Four Star management team will also remain in place.

   According to Mr. Carlos D. DeMattos, Chief Executive Officer and Chairman of
   Matthews, "Four Star, the largest supplier of lighting equipment to Broadway
   productions and related road shows, will enhance Matthews' expansion on the
   East coast.  Our goal is to have Four Star continue to provide quality
   service and equipment to (i) Broadway stages, (ii) the add-on road shows (or
   tours) that often take a Broadway show to other major cities, and (iii) the
   production companies that produce these shows.  Further, Four Star's
   expertise in equipment rental to theatrical markets outside of its current
   expertise of Broadway productions and follow-on road shows will enhance
   Matthews' current network of equipment rental operations.  The addition of
   Four Star's theatrical rental business to Matthews will also complement our
   current theatrical equipment rental business and our equipment and expendable
   sales business based in Los Angeles, and the additional technical expertise
   and marketing knowledge currently within Four Star should provide benefit to
   the entire Matthews group.  In addition, the expanded credit facility with
   The Chase Manhattan Bank will better position the Company to (i) attain its
   goals and objectives, (ii) continue its strategic expansion and
   diversification strategy, and (iii) provide flexibility in funding growing
   working capital requirements, purchasing new equipment and paying-off other
   debt."

     Mr. DeMattos added, "This transaction is Matthews' largest and most
significant acquisition.  It provides diversification and expansion in the
strategically important New York market and offers additional growth
opportunities for other Matthews product lines, including grip and lighting
equipment rentals and sales, video and film camera rentals, and expendable
sales."

     Matthews Studio Equipment Group rents, sells, designs and manufactures grip
and lighting support equipment, video and film cameras, and related supplies for
the film, television, corporate, commercial photography and theatrical
production industries worldwide.

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