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AMDURA RESPONDS TO UNUSUAL TRADING ACTIVITY

 AMDURA RESPONDS TO UNUSUAL TRADING ACTIVITY
 TULSA, Okla., June 10 /PRNewswire/ -- Amdura Corporation (NYSE: ADU)


announced today that in light of the recent unusual trading activity in its common stock and in order to reiterate certain disclosures made by Amdura in its recent filings with the Securities and Exchange Commission, it was breaking from its standard practice of not commenting on trading activity in its stock. In that regard, Amdura stated that it knows of no significant developments to which it is a party which would account for such trading activity.
 As was previously reported in its recent filings with the Securities and Exchange Commission (SEC), in order to attempt to reduce its debt burden to a more manageable level in light of its recent operating results, which are summarized below, and to more properly align its debt to equity ratio, Amdura has recently initiated discussions with certain of its term lenders concerning the possible restructuring of its term note indebtedness.
 Amdura and its wholly owned subsidiaries, The Crosby Group, Inc. (Crosby) and The Harris Waste Management Group, Inc. (Harris), are joint obligors on $50 million in 10 year term note indebtedness held by 13 term lenders, which term notes are collateralized by substantially all of the domestic assets of Amdura and its subsidiaries. Such term notes were issued pursuant to Amdura's Chapter 11 plan of reorganization which was confirmed by the United States Bankruptcy Court for the District of Colorado on Sept. 19, 1991 and became effective after the close of business on Oct. 23, 1991.
 To the best of Amdura's knowledge, such term lenders own approximately 87 percent of Amdura's outstanding common stock. In addition, Harris and Crosby have also secured a $15 million revolving credit line from six of such term lenders, who, to the best of Amdura's knowledge, own approximately 63.4 percent of Amdura's outstanding common stock, which line of credit is similarly collateralized and guaranteed by Amdura. As of this date no draw down has been effected under such revolving credit line although approximately $621,000 in letters of credit have been issued there under at the request of Harris. As was previously disclosed in Amdura's recent filings with the SEC, Amdura was in default of certain financial and non-monetary covenants contained in the agreements relating to such term notes and revolving credit line, but such defaults have recently been waived by the requisite percentage of lenders under such agreements.
 With respect to the next quarterly interest payment on Amdura's term note indebtedness due on June 30, 1992, Amdura's board of directors has not yet made a decision whether or not such payment should be made, although discussions concerning nonpayment have taken place with certain of Amdura's term lenders.
 In connection with the foregoing, Amdura's board of directors is in the process of retaining an investment banking firm to assist it in reviewing, structuring and attempting to implement any such restructuring transaction.
 In connection with its review of restructuring alternatives, as previously reported in its recent SEC filings, Amdura has recently received a letter from Patricia Investments, Inc., the holder of approximately $6 million of Amdura's term note indebtedness and, to the best of Amdura's knowledge, of approximately 10.5 percent of Amdura's outstanding common stock. In such letter, Patricia Investments, Inc. recommends that Amdura consider effecting a recapitalization plan in order to reduce its debt in light of Amdura's recently announced 1991 and first quarter 1992 estimated results of operations. In addition, Patricia Investments, Inc. has indicated that it would be willing to entertain an equity exchange offer for some or all of its term notes. Patricia Investments, Inc. also indicated that the exchange ratio would have to be set at a substantial discount to serve as an inducement for the exchange and that it would be determined in light of results at the time of exchange and checked against comparables. Patricia Investments, Inc. further indicated that Amdura should consider preceding or accompanying such recapitalization with an equity rights offering at the same price pursuant to which existing equity holders would have an opportunity to either participate and limit dilution of their positions or sell detachable, tradeable, listed rights and that consideration would have to be given to potential modifications to the term loan agreement underlying the term notes depending on the amount of term notes exchanged. Frederick W. Whitridge Jr., the chief investment officer of Patricia Investments, Inc., is a member of Amdura's six person board of directors.
 As previously reported in Amdura's recent filings with the SEC, as a result of the discharge of certain of its indebtedness in connection with the confirmation of its plan of reorganization, a one time extraordinary gain of $135,987,000 was included in Amdura's 1991 results of operations. Because of Amdura's emergence from bankruptcy during the fourth quarter of its 1991 fiscal year and its corresponding application of fresh start reporting as required by Statement of Position 90-7 of the American Institute of Certified Public Accountants, for financial reporting purposes Amdura has divided its fiscal year ended Dec. 31, 1991 into two periods (that period proximating the period prior to such emergence, Jan. 1, 1991 through Oct. 31, 1991 |the "1991 Pre-Effective Date Period"~, and that period proximating the period subsequent to such emergence, Nov. 1, 1991 through Dec. 31, 1991 |the "1991 Post-Effective Date Period"~), and its financial statements for the year ended Dec. 31, 1991 reflect the results from both such periods.
 In its previous filings with the SEC, Amdura reported that for the 1991 Pre-Effective Date Period and the 1991 Post-Effective Date Period it had aggregate consolidated net income from its heavy manufacturing operations (before application of the fresh start accounting principles referred to above) which was materially and significantly less than that for the fiscal year ended Dec. 31, 1990. For the fiscal year ended Dec. 31, 1990, Amdura reported consolidated net income from its heavy manufacturing operations of $9,694,000, on revenues of $87,266,000 for Crosby and $63,175,000 for Harris. For the 1991 Pre-Effective Date and the 1991 Post-Effective Date Periods, Amdura had consolidated net income (loss) from its heavy manufacturing operations of $151,000 and $(795,000), respectively, on revenues during such periods of $75,917,000 and $12,097,000, respectively, in the case of Crosby and $48,718,000 and $7,356,000, respectively, in the case of Harris. Although Crosby performed during 1991 at a level consistent with the level of its performance during 1990 and contributed a net profit to Amdura's consolidated 1991 results, for the reasons stated below Harris' results of operations generated a net loss for the 1991 fiscal year, therefore being the contributing factor in the material and significant decline in Amdura's consolidated results of operations for 1991.
 In its previous filings with the SEC, Amdura reported that the reduced results for 1991 have been compounded by a number of factors, including the factors discussed below with respect to the reduced results for the quarter ended March 31, 1992, significant corporate general and administrative expenses, interest paid on the term notes, significant reserves established with respect to pending product liability matters and environmental issues as well as unresolved priority and administrative claims resulting from Amdura's bankruptcy. Furthermore, Harris has written off its net investment in its foreign subsidiary, which filed a request for administrative receivership in England on April 29, 1992.
 In recent filings with the SEC, Amdura had reported that it anticipated that for the first quarter ended March 31, 1992, it would report a consolidated net loss. In its quarterly report on Form 10-Q for such period, which report is expected to be filed by Amdura no later than June 15, 1992, Amdura will report a consolidated net loss of ($1,070,000) on consolidated revenues of $30,951,000, as compared to a consolidated net loss from continuing operations of ($259,000) for the quarter ended March 31, 1991 on consolidated revenues from such operations of $37,541,000. Although Crosby performed during the first quarter of 1992 at a level consistent with its level of performance during the first quarter of 1991 and contributed positively to Amdura's consolidated first quarter 1992 results, for the reasons more fully described below, Harris operated at a loss (before interest and taxes) for the first quarter of 1992, therefore being the contributing factor in Amdura's first quarter loss. The reduced results for the first quarter of 1992 have been compounded by a number of factors, including the factors discussed below with respect to Harris, as well as significant corporate general and administrative expenses and interest paid on the term notes.
 As was previously reported in Amdura's recent SEC filings, the recent operating results of Harris have been negatively impacted by a number of factors, including general economic conditions affecting the capital equipment industry. The depressed economy has resulted in a reduced new order backlog for Harris' products and in delays in the shipment of previously ordered products as purchasers attempt to maintain their cash positions. In addition, increased competition and certain environmental regulations applicable to the installation by purchasers of certain waste management equipment produced by Harris have contributed to Harris' condition. It is anticipated that Harris' results of operations could continue to show weaknesses until current economic conditions are stabilized or reversed.
 In addition, Amdura announced today that it received yesterday afternoon a stockholders' consent purportedly signed by the holders of a majority of Amdura's outstanding common stock removing certain trading restrictions from Amdura's Restated Certificate of Incorporation which are intended to avoid an "ownership change" for federal income tax purposes after consummation of Amdura's plan of reorganization, which change would reduce, under certain circumstances and depending on the approach chosen by Amdura for calculating the amount of its net operating loss carryforwards, the amount of such carryforwards. Such restrictions provide that beneficial holders of common stock who own, or beneficial holders of common stock who would own, after acquiring additional shares, 5 percent or more of the issued and outstanding common stock of Amdura, will be prohibited through Jan. 1, 2006 from buying or selling any shares (or any option, warrant or other right to purchase or acquire shares) without the approval of the board of directors of Amdura or an officer to whom the board of directors delegates such approval authority, subject to the waiver or amendment of these restrictions by the holders of a majority of the common stock. Amdura has previously reported in its filings with the SEC that based solely on publicly available information certain of Amdura's term lenders, who also own shares of Amdura's common stock, have agreed to take such action as may be necessary to remove such trading restrictions.
 Amdura, headquartered in Tulsa, is through its subsidiaries a specialty manufacturer of products for the overhead lifting and waste recycling and disposal markets.
 -0- 6/10/92
 /CONTACT: Doug Pimple of Amdura Corporation, 918-834-4611/
 (ADU) CO: Amdura Corporation ST: Oklahoma IN: SU:


TS -- NY028 -- 8739 06/10/92 10:31 EDT
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Date:Jun 10, 1992
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