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                                                                    EXHIBIT 99.1


COMPANY PRESS RELEASE                 CONTACT:  Rusty Page at 704-372-5572
                                                Daniel F. Clark at 818-734-8349


COHR ANNOUNCES MERGER AGREEMENT AND PURCHASE OF LARGE SHARE POSITION BY INVESTOR
GROUP

Chatsworth, CA, December 24, 1998

Cohr Inc. and an investor group advised by Three Cities Research, Inc. ("TCF
Acquisition") today announced that they have entered into a definitive merger
agreement pursuant to which TCF Acquisition has purchased a 48% interest in the
Company from two major shareholders at a price of $5-1/8 per share and will
commence, within five business days, a tender offer for all of the remaining
outstanding shares of Cohr common stock at a price of $5-3/8 per share in cash.

It is possible that the tender offer price could be increased by $1.00 per share
in the event the Company settles its existing shareholder litigation within
certain parameters. In order for the shareholders to receive such an increase,
the Company must obtain a preliminary court order approving the settlement
within 120 days of the commencement of the tender offer (subject to extension to
210 days if a definitive settlement agreement is reached within 120 days). The
Company will adhere to its existing policy of not providing updates with respect
to the status of any settlement negotiations. In light of the complexity of the
issues raised in the shareholder's suits and the number of parties involved, the
Company can give no assurance that it will be able to reach such a settlement
with such time periods.

The tender offer is not subject to financing.

The Board of Directors of Cohr has unanimously approved the agreement and has
recommended that Cohr shareholders accept the tender offer.

Mr. Lynn P. Reitnouer, Cohr's Chairman of the Board, stated: "We are pleased to
announce a transaction delivering to shareholders a significant premium over
current market."

As part of this transaction, Three Cities Research was granted the right to
appoint two new directors to the Company's Board.

Three Cities Research, Inc. is an investment advisor with an established record
in the successful investment of equity capital in medium sized companies in
basic industries. Through its $245 million investment funds, Three Cities
Research actively seeks investment and acquisition opportunities in
under-performing companies requiring fundamental change or those impeded by



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legal, capital or ownership complications. Since 1976, as an active private
equity investor, Three Cities Research has completed over 60 control investments
involving over $500 million of equity capital.

Cohr Inc., a leading national outsourcing service organization, provides
equipment servicing, group purchasing and other services and products to
hospitals, integrated health systems and alternate site providers.



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