A. P. Green Industries Reports Improved Fourth Quarter and Year-end Results; Declares $0.04 Dividend Per Share.

MEXICO, Mo.--(BUSINESS WIRE)--Feb. 12, 1998--A. P. Green Industries, Inc. (NYSE:APK) today reported substantially improved results for the fourth quarter and year ended December 31, 1997.

In the fourth quarter of 1997, net sales increased 12.4% to $70.5 million from $62.7 million in the 1996 fourth quarter. Gross profit increased 29.8% to $12.9 million during the fourth quarter compared to $9.9 million for the same period in 1996. Net earnings grew substantially to $2,905,000, or $0.34 per share, on a diluted basis, compared with $335,000, or $0.04 per share, diluted, in the corresponding 1996 quarter. As previously reported, net earnings, earnings per share, minority interest and retained earnings for 1996 and the first three-quarters of 1997 were adjusted to reflect an error in the method used to account for losses in a 51% owned subsidiary. The adjustments did not affect the Company's operating results or margins.

For the full year period, net sales rose 7.5% to $277.9 million versus $258.5 million in 1996 and gross profit was up 13.5% to $50.1 million compared to $44.1 million at year-end 1996. Net earnings for 1997 increased to $8.1 million, or $0.98 per share, diluted, compared to $4.7 million, or $0.57 per share, diluted, in 1996.

In an action at its meeting today, the Board of Directors declared a cash dividend of $0.04 per share of common stock payable March 13, 1998 to shareholders of record on February 27, 1998.

The Company benefited from continued strong lime demand and increased sales of refractory products primarily in the United States. Lime sales were up 25.1% in the quarter and 25.5% for the year as a result of incremental capacity from the acquisition of Eastern Ridge Lime in December 1996. Strong refractory demand in the United States plus increasing sales at A. P. Green de Mexico, Lanxide ThermoComposites Inc. (LTI), INTOGREEN and PT A. P. Green Indonesia resulted in a 10.2% increase in fourth quarter refractory sales. For the year, refractory sales were up 4.3%, reflecting the significant improvement in the second half of the year compared with the second half of 1996 for these same operations. This sales growth resulted in gross margin increases of 240 basis points in the fourth quarter and 90 basis points for the year.

Paul F. Hummer, A. P. Green's Chairman, President and Chief Executive Officer, commented: "We continue to see strong demand trends in both our lime and refractory operations. The additional lime capacity we acquired in 1996 has been instrumental in meeting the growing demands of the industrial lime industry. We broke ground on a new joint venture lime processing facility in Charleston, South Carolina last month which will add an additional 280,000 tons of lime capacity and will be expandable to 420,000 tons. We anticipate production beginning there late in 1998. The Charleston processing facility will be an important contributor as we continue to expand our ability to meet the growing demand for high quality lime products in the Southeastern United States."

Mr. Hummer continued: "Our refractory business finished the year on a strong note. Increased throughput in the U.S. allowed us to take advantage of our substantial operating leverage. The result was an improvement in fourth quarter and year-end operating profits for the division of $3.5 million and $5.8 million respectively. Order volume worldwide has been consistent and A. P. Green Canada is beginning to show signs of improvement. Sales at LTI and INTOGREEN are increasing resulting in smaller losses and bringing these joint ventures closer to profitability. As we look forward to 1998 and 1999, we will continue to seek out opportunities and build on the progress we have made in 1997."

A. P. Green Industries, Inc., headquartered in Mexico, Missouri, mines, processes, manufactures and distributes specialty minerals and mineral-based products, including industrial lime products and refractories, in both the United States and international markets. The Company operates 23 plants in the United States, Canada, Mexico, the United Kingdom and Indonesia.

Statements contained in this press release concerning the Company's future revenues, profitability, Charleston production start date, market demand and future opportunities are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results, production start date and future opportunities may vary materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment including, but nor limited to: delivery delays or defaults by customers; performance issues with key suppliers and subcontractors; the Company's successful execution of internal operating plans; collective bargaining labor disputes; construction schedules at the Charleston facility and general and industry-wide business trends.

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                  A. P.  GREEN INDUSTRIES, INC.
               CONSOLIDATED STATEMENTS OF EARNINGS
      (Dollars in thousands, except per share information)


                         Three Months Ended   Twelve Months Ended
                             December 31,         December 31,
                            (Unaudited)
                           1997      1996       1997      1996

Net Sales                $70,542   $62,741   $277,907  $258,461
Cost of sales             57,691    52,842    227,851   214,353
Gross profit              12,851     9,899     50,056    44,108
Expenses and other income
  Selling & administrative
   expenses                9,600     9,072     37,445    36,087
  Interest expense           833       768      3,297     3,112
  Interest income           (227)     (370)      (958)   (1,255)
  Minority interest in
   loss of partnerships     (120)      (50)      (329)     (127)
  Other income, net         (335)       50       (535)     (542)
  Earnings before income
   taxes                   3,100       429     11,136     6,833
Income tax expense         1,147        89      3,943     2,396
Equity in net income of
  affiliates              (1,021)      (57)    (1,194)     (436)
Minority interest
  in income of
   consolidated
   subsidiaries, net          69        62        319       201
  Net earnings            $2,905    $  335     $8,068    $4,672
Net earnings per
  common share
      - basic            $  0.36    $ 0.04    $  1.00   $  0.58
Net earnings per
  common share
      - diluted          $  0.34    $ 0.04    $  0.98   $  0.57

Weighted average
  shares outstanding
     - basic           8,060,540  8,021,508  8,041,266  8,037,710
Weighted average
  shares outstanding
     - diluted         8,435,355  8,215,072  8,269,275  8,216,616


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                  A. P. GREEN INDUSTRIES, INC.
          CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                        As of December 31
                     (Dollars in thousands)


                                  1997           1996
Assets

Current assets                  $115,365       $119,537
Property, plant and
  equipment, net                 107,622        107,394
Projected insurance
  recovery-asbestos              116,314        110,374
Pension assets                     9,251          9,044
Intangible assets, net             4,173          4,132
Other assets                       4,989          4,648
Total assets                    $357,714       $355,129

Liabilities and
  Stockholders' Equity

Current liabilities              $46,797        $43,996
Deferred income taxes              7,199         10,228
Long-term non-pension benefits    17,652         16,583
Long-term pensions                11,615         12,449
Long-term debt                    31,034         40,109
Projected asbestos claims        116,314        111,966
Minority interests                 2,568          2,088
Stockholders' equity             124,535        117,710
Total liabilities
  and stockholders' equity      $357,714       $355,129

CONTACT: A. P. Green Industries, Inc.

Gary L. Roberts

Vice President,

Chief Financial Officer and

Treasurer

[phone]

or

Morgen-Walke Associates:

June Filingeri, John Blackwell

Media contact: Stan Froelich

[phone]