THE LEHIGH GROUP INC.
                          810 SEVENTH AVENUE-27TH FLOOR
                                   NY NY 10019
                                    333-2620
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PRESS RELEASE


                   THE LEHIGH GROUP INC. & FIRST MEDICAL CORP.
                        SIGN DEFINITIVE MERGER AGREEMENT;
               FIRST MEDICAL CORP. BUYS OPTION TO PURCHASE SHARES


NY, NY, October 29, 1996

         The Lehigh Group Inc. (NYSE - LEI) ("Lehigh") announced today that they
have executed a definitive  merger  agreement  with First Medical Corp.  ("FMC")
under which FMC will merge into a newly formed subsidiary of Lehigh. Immediately
following  the merger the  stockholders  of Lehigh will retain 4% of the capital
stock of Lehigh. This transaction has been approved by the Board of Directors of
both companies and is subject to approval by the  stockholders  of each company.
It is contemplated that those shareholders'  meetings will be held late December
1996.

         First  Medical  Corp.  ("FMC") is a privately  held company which is an
Integrated  Medical  Service  Company  that  operates  businesses  in  Physician
Management,  Hospital Services and International  Primary Care Centers.  For the
six months  ended  6/30/96 the company had revenues of  $26,000,000  and EBIT of
$1,300,000 with minimal debt.

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

                          * * * * * * * * * * * * * * *

         For further  information  contact:  Robert A. Bruno, Vice President and
General Counsel,  The Lehigh Group Inc., 810 Seventh Avenue, New York, NY 10019,
Telephone: 212/333-2620.

         Dennis Sokol,  Chairman,  First Medical  Corporation,  1055  Washington
Blvd., Stamford, Conn. 06901, Telephone: 203/327-0900.

         Elliot H. Cole,  Vice  Chairman of First Medical  Corporation,  Office:
Patton  Boggs,  LLP,  2550 M Street,  N.W.,  Washington,  DC  20037,  Telephone:
202/457-6080.


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