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APPEALS COURT RULING FAVORABLE TO IMO IN SUIT WITH LILCO

 LAWRENCEVILLE, N.J., Sept. 27 /PRNewswire/ -- Imo Industries Inc. (NYSE: IMD) said that a ruling issued by the U.S. Court of Appeals for the Second Circuit relative to a lawsuit between Imo and Long Island Lighting Company (LILCO), is favorable to Imo.
 The ruling denies LILCO's appeal to reopen issues previously resolved by the District Court in Imo's favor.
 Assuming that the appeals process will not be carried further, Imo expects that future reports on the company's financial statements by its auditors will no longer include a reference to this uncertainty.
 The company said that the Court of Appeals ruling not only removes a major contingent-liability uncertainty for Imo, it also ends a long- standing management distraction. The lawsuit, which was brought by LILCO against Imo in 1985, stemmed from the sale to LILCO in the mid- 1970's of diesel generators for use at its Shoreham Nuclear Power Station.
 The court let stand a judgment in the amount of $10.8 million plus interest against Imo. The company's insurers have posted appeal bonds in an amount sufficient to make the payment to LILCO.
 Imo continues to participate in litigation with certain insurers over obligations of the insurers under their contracts. The company established a reserve last year, which it still considers adequate.
 /delval/
 -0- 9/27/93
 /CONTACT: Paul B. Lazovick, director of Investor Relations, of Imo Industries, 609-896-7615/
 (IMD)


CO: Imo Industries Inc.; Long Island Lighting Company ST: New Jersey IN: SU:

CC -- PH020 -- 5966 09/27/93 13:37 EDT
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Publication:PR Newswire
Date:Sep 27, 1993
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