FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, DECEMBER 12, 1996                        (202) 616-2765
                                               TDD (202) 514-1888

              SNAP-ON PAYS U.S. $891,000 TO SETTLE 

     WASHINGTON, D.C. -- Snap-on Incorporated has paid the United
States $891,000 to settle claims the company over billed the
Department of Defense for tools used by military installations,
the Department of Justice announced today.  The government
alleged the company falsely represented itself as a small
business and sold tools that cost 10 percent more than what Snap-
on offered the government through regional sales offices. 

     Frank W. Hunger, Assistant Attorney General in charge of the
Civil Division, and U.S. Attorney Thomas P. Schneider of
Milwaukee said Snap-on notified the Department of Defense's
Inspector General of the false representations under the
Voluntary Disclosure Program on June 15, 1994.  Snap-on is
headquartered in Kenosha, Wisconsin.

     In addition to the $891,000 payment, the company also agreed
to absorb all of its expenses, including legal and accounting
costs incurred in conducting its internal investigation.

     The Department said Snap-on, a major manufacturer of tools,
sold thousands of tools to the government under the small
business set-aside program.  The prices were about 10 percent
more than what the government would have paid if the tools were
purchased through Snap-on's regional centers under contracts the
company held with the United States General Services

     The settlement resolves any potential claims by the United
States against Snap-on under the False Claims Act and for fraud
and other common law theories for improperly making small
business set-aside sales to the government.

     The settlement was handled jointly by the U.S. Attorney's
office in Milwaukee and the Department's Civil Division.