Lehiqh Group and DHB Capital Group Siqn
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                  Definitive Merqer Aqreement; DHB Group Buys
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                           Option to Purchase Shares
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     New York, N.Y. -- July 9, 1996 -- The Lehigh Group,  Inc.  (NYSE:  LEI) and
DHB Capital Group,  Inc. (NASDAQ Bulletin Board: DHBT and Boston Stock Exchange:
DHB) jointly  announced  that they have executed a definitive  merger  agreement
under  which DHB Capital  will merge into a  newly-formed  subsidiary  of Lehigh
Capital.

     Consistent  with the terms of the agreement in principle  announced on June
11, 1996,  under the terms of the definitive  agreement Lehigh Group shares will
be reverse-split on a 21.845 to 1 basis and DHB Capital shares will be exchanged
on a one-to-one basis. Consequently,  following the merger existing Lehigh Group
stockholders  will  own  3% and  DHB  Group  stockholders  will  own  97% of the
resulting  company,  which will be renamed from "The Lehigh Group, Inc." to "DHB
Group, Inc."

     This  transaction  has been  approved  by the Boards of  Directors  of both
companies and is subject to approval by the stockholders of each company.  It is
contemplated that those stockholder meetings will be held in early October 1996.

     Following the merger, Mr. David H. Brooks, Chairman and CEO of DHB Capital,
will become  Chairman  and CEO of the  combined  company,  and Mr.  Salvatore J.
Zizza, Chairman and CEO of the Lehigh Group, will become President and COO.






     Concurrent with the execution of the definitive merger agreement, Mr. Zizza
sold to DHB Capital an option to  purchase  up to six  million  shares of Lehigh
Group at $0.50 per  share,  which is the price at which  Mr.  Zizza can  acquire
those shares from Lehigh Group under  pre-existing  agreements.  That option, if
exercised in full, would equal approximately 37% of Lehigh Group's stock at that
time. Furthermore,  Mr. Zizza agreed to use his best efforts prior to the record
date for the Lehigh Group  stockholders'  meeting to obtain irrevocable  proxies
for Lehigh  Group shares  owned by himself and other  officers and  directors of
Lehigh Group.

     The option sold by Mr. Zizza to DHB Capital expires on the later of January
8, 1997 and the consummation or termination of the definitive  merger agreement.
Also, it contains  customary  standstill  agreements on DHB Capital's ability to
vote or dispose of any  Lehigh  Group  shares  which it may  acquire.  Under the
option agreement, DHB Capital may acquire up to 5% of Lehigh Group's stock prior
to October 15, 1996 on the open market or privately negotiated  purchases;  and,
if a new  Schedule  13D is filed  after  July 8, 1996,  it may  acquire up to an
additional 10% of Lehigh Group's stock.

     Commenting on the transaction,  Messrs. Zizza and Brooks said "This deal is
a win-win situation for both companies' stockholders.  Lehigh Group stockholders
will continue their ownership, on a favorable basis, in DHB Capital's growing



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and profitable businesses.  DHB Capital's shareholders will benefit from greater
market liquidity, as well as from the expanded management team which will result
from the combination of Lehigh Capital's and DHB Capital's businesses."

For further information, please contact:

                                        Ms. Mary  Kreidell  
                                        (516) 997-1155 
                                        [DHB Capital Group, Inc.]

                                        or

                                        Mr.  Robert  Bruno 
                                        (212)333-2620  
                                        [The Lehigh Group, Inc.]



















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