Arguss Communications Releases Preliminary Fourth Quarter and Year End Results.

Business/Technology Editors

ROCKVILLE, Md.--(BUSINESS WIRE)--Jan. 30, 2001

Arguss Communications, Inc., (NYSE:ACX) a leading builder of the nation's communications infrastructure, today released preliminary financial results for the fourth quarter and fiscal year ended December 31, 2000.

Arguss expects consolidated Earnings Before Interest Taxes Depreciation and Amortization adjusted for stock option expense (EBITDA) for 2000 to grow to approximately $44.8 million or $3.15 per share (diluted), from the $30.6 million or $2.35 per share (diluted) achieved in 1999. EBITDA for the seasonally slow fourth quarter is expected to increase to approximately $8.4 million or $.57 per share (diluted) in the fourth quarter of 2000 compared to $7.7 million or $.58 per share (diluted) in the fourth quarter of 1999.

The company expects consolidated net sales for the fourth quarter of 2000 to be approximately $69 million, or 28% more than the $54.4 million reported in the fourth quarter of 1999. Diluted earnings per share are expected to be in the range of breakeven to $.02 per share for the fourth quarter of 2000, versus $.11 per share reported in the fourth quarter of 1999.

For the full year, the company expects to report consolidated net sales of approximately $270 million in 2000, up 37 % from the $197.4 million reported in 1999. Diluted earnings per share are expected to be in the range of $.64 to $.66 per share in 2000, versus $.50 per share reported in 1999.

Rainer Bosselmann, Chairman and Chief Executive Officer of Arguss, said "Overall, we continue to see strong demand for our full line of infrastructure services. However, during the last several months, certain blue chip customers unexpectedly delayed large infrastructure projects, causing a short-term decline in our profitability. Without advance notice, it is difficult to redeploy construction crews, especially in the Pacific Northwest and the Rocky Mountain regions where most of the cutback occurred. However, we are taking appropriate steps to restore profit margins."

Currently, the company's backlog for projects to be completed during the year 2001 is at levels consistent with amounts projected in January of last year for year 2000. In addition, the customer base has become more diverse. The company's largest customer represented 18% of one year backlog in January 2001 compared to 30% in January 2000.

Mr. Bosselmann concluded, "We believe the conservative approach to capital expenditures taken by certain customers will be temporary. Consumer demand for high-speed access to the Internet continues to increase. Demand is especially strong in the so-called `last mile,' which is where the overwhelming majority of our capacity is focused. We expect construction spending to resume its robust long-term trends during the year 2001."

Arguss Communications expects to report final results for fiscal 2000 on or about March 1, 2001. At that time, the company will also conduct a conference call to review the financial statements and significant operational details.

Arguss Communications provides infrastructure services for the leading telecommunications and cable companies. Services include project management, design, engineering, construction, and maintenance of aerial, underground, wireless and premise facilities. Arguss serves a broad customer base throughout the United States. The Company's blue chip customers include AT&T, MCI WorldCom, Quest, McLeod USA, Time Warner, Adelphia, and Charter Communications. The company also manufactures highly advanced, computer-controlled capital equipment used in the assembly of electronic circuits. Further information is available on the company's website at www.argx.com.

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission.