Arguss Holdings Announces Record Second Quarter Results.

ROCKVILLE, Md.--(BUSINESS WIRE)--July 16, 1997--Arguss Holdings, Inc. (NASDAQ:ARGX) announced record revenues and earnings for both the six and three months ended June 30, 1997.

Consolidated net sales for the six and three months ended June 30, 1997 were $21,658,000 and $12,682,000, respectively, compared to $7,560,000 and $3,630,000 for the same periods one year ago, representing increases of approximately three and one half times the 1996 revenue run rates due primarily to the acquisition of White Mountain Cable Construction, effective January 1, 1997, and a 42% increase in sales for Conceptronic for the three months ended June 30, 1997 over the comparable period in 1996. For White Mountain Cable Construction, respective net sales for the six and three months ended June 30, 1997 were $12,929,000 and $7,535,000, representing aggregate increases of 104% and 93% over sales for the comparable periods in 1996, prior to acquisition. White Mountain has increased its dominance in the New England region with percentage sales increases in excess of street estimates of the expanded cable and telecommunications sector capital expenditures. For Conceptronic, net sales for the six and three months ended June 30, 1997 were $8,729,000 and $5,147,000, respectively, and 15% and 42% increases over the comparable periods in 1996. The increase in Conceptronic sales resulted from concerted efforts to increase market penetration in the SMT circuit assembly equipment industry. Booking activity in 1997 has increased 14% over 1996 levels giving the company optimism for increasing customer demand over the course of the year.

Consolidated net income for the six and three months ended June 30, 1997 increased to $1,392,000 or $.19 cents per share and $774,000 or $.10 per share, respectively, compared to net losses of ($262,000) or ($.15) per share and ($321,000) or ($.19) in the same periods in 1996, due primarily to the acquisition of White Mountain and improved operating results at Conceptronic. For White Mountain, pre-tax income for the six months ended June 30, 1997 was $2,102,000 an increase of 279% over proforma pre-tax income for the comparable period in 1996. Consolidated net income for the six months ended June 30, 1997 was significantly effected by goodwill amortization of $393,000 and a less than statutory income tax rate due primarily to reversal of valuation allowances. The Conceptronic pre-tax loss for the first six months of 1997 resulted in part from an unfavorable product mix and in part from increased expenses incurred for research and development, the opening of the Malaysian sales office and expenses related to infrastructure improvements. The increase in White Mountain pre-tax income over the six months ended June 30, 1997 was due to an increased demand for White Mountain services as the cable and telecommunications industry continues to accelerate the build-out of the national network.

In June 1997, Arguss announced the proposed acquisition of TCS Communications, Inc. of Palm Harbor, Florida. TCS, which had revenues of approximately $20 million in 1996, provides underground and aerial construction services and splicing of fiber optic and coaxial cable to telecommunications on a national level. The consummation of this proposed transaction is contingent upon the completion of due-diligence analysis, the signing of a definitive purchase and sale agreement, approval of both companies boards of directors and other conditions.

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.

Arguss Holdings, Inc.(NASDAQ:ARGX) operates as a holding company conducting its operations through its wholly-owned subsidiaries, White Mountain Cable Construction Corp. and Conceptronic, Inc. White Mountain constructs and reconstructs, and maintains and repairs communications systems, and cable television and data systems. White Mountain provides aerial and premise construction services and splicing of both fiber optic and coaxial cable to major communications customers. Conceptronic manufactures and sells highly advanced computer-controlled equipment used in the SMT circuit assembly industry. Arguss continues to actively pursue acquisitions in industry sectors which it considers strategically important.

The following tables present unaudited consolidated, selected and proforma financial information for the six and three months ended June 30, 1997 and 1996.

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                          Arguss Holdings, Inc.
                 Unaudited Consolidating Income Statement
                   For the Six Months Ended June 30,1997

                      Conceptronic, Inc.   White Mtn.    Consolidated

Net Sales                $  8,729,000   $ 12,929,000    $ 21,658,000
Cost of Sales               5,960,000      8,867,000      14,827,000
Gross Profit                2,769,000      4,062,000       6,831,000

Operating Expenses          2,722,000        921,000       3,643,000
Depreciation                  118,000        330,000         448,000
Goodwill Amortization            --          393,000         393,000
Net Interest
and Other Expense              60,000        109,000         169,000
Net Corporate Expenses        207,000        207,000         414,000
    Total Expenses          3,107,000      1,960,000       5,067,000

Pre-Tax Income
(Loss)                       (338,000)     2,102,000       1,764,000
Tax Expense                                                  372,000
Net Income                                              $  1,392,000
Earnings Per Share                                      $        .19
Weighted Average
 Shares Outstanding                                        7,518,000

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                       Arguss Holdings, Inc.
             Unaudited Consolidating Income Statement
             For the Three Months Ended June 30, 1997

                     Conceptronic, Inc.   White Mtn   Consolidated

Net Sales                 $ 5,147,000   $ 7,535,000   $12,682,000
Cost of Sales               3,444,000     4,869,000     8,313,000
Gross Profit                1,703,000     2,666,000     4,369,000

Operating Expenses          1,362,000       638,000     2,000,000
Depreciation                   56,000       184,000       240,000
Goodwill Amortization            --         197,000       197,000
Net Interest and
 Other Expense                 26,000        63,000        89,000
Net Corporate Expenses        158,000       158,000       316,000
    Total Expenses          1,602,000     1,240,000     2,842,000


Pre-Tax Income                101,000     1,426,000     1,527,000
Tax Expense                                               753,000
Net Income                                            $   774,000
Earnings Per Share                                    $       .10
Weighted Average
 Shares Outstanding                                     7,541,000

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                          Arguss Holdings, Inc.
                    Selected Financial Information
                          As of June 30, 1997
                                (unaudited)

                        Conceptronic, Inc.   White Mtn   Consolidated

ASSETS:
Corporate Cash              $      --     $      --     $ 1,437,000
Cash                            116,000         2,000       118,000
Accounts Receivable           3,455.000     4,555,000     8,010,000
Inventory                     4,823,000       154,000     4,977,000
Property, Plant & Equipment   1,364,000     5,211,000     6,575,000
Goodwill                           --      15,308,000    15,308,000
Other Corporate Assets             --            --         403,000
Other Assets                    594,000        61,000       655,000
      Total Assets           10,352,000    25,291,000   $37,483,000

LIABILITIES:
Current Borrowings          $ 1,180,000   $ 1,582,000   $ 2,762,000
Trade Payables and Expenses   3,223,000     2,000,000     5,223,000
Corporate Accruals                 --            --
                                                          1,142,000
Deferred Tax Liability             --         472,000       472,000
Long-Term Debt                1,013,000     2,389,000     3,402,000
         Total Liabilities    5,416,000     6,443,000    13,001,000


TOTAL STOCKHOLDERS EQUITY                                24,482,000


Total Liabilities and Stockholders Equity               $37,483,000


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                        Arguss Holdings, Inc.
              Unaudited Proforma Income Statements
              For the Six Months Ended June 30,1996

                    Conceptronic, Inc.   White Mtn    Consolidated
Net Sales               $ 7,560,000    $ 6,331,000   $13,891,000
Cost of Sales             5,240,000      4,291,000     9,531,000
Gross Profit              2,320,000      2,040,000     4,360,000

Operating Expenses        2,321,000        513,000 (A) 2,834,000
Depreciation                169,000        276,000       445,000
Goodwill Amortization          --          393,000 (B)   393,000
Net Interest and
Other Expense                91,000        104,000 (C)   195,000
    Total Expenses        2,581,000      1,286,000
                                                       3,867,000

Pre-Tax Income(Loss)       (261,000)       754,000       493,000
Income Tax                     --          354,000 (D)   354,000
Net Income (Loss)       $  (261,000)   $   400,000   $   139,000
Earnings Per Share      $      (.15)                 $       .02
Weighted Average
Shares Outstanding        1,700,000                    7,271,000

NOTES:
 (A) Compensation expense adjusted to reflect current salary
     arrangements.
 (B) Amortization of $15,700,000 of goodwill over 20 years.
 (C) No adjustment is made for imputed interest expense on
     acquisition financing.
     Debt financing was not utilized for the acquisition.
 (D) Reduced income tax for White Mountain is based on the
     assumption that Arguss could utilize Conceptronic net
     operating losses to offset White Mountain operating income.

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                     Arguss Holdings, Inc.
            Unaudited Proforma Income Statements
          For the Three Months Ended June 30,1996

                     Conceptronic, Inc.     White Mtn    Consolidated

Net Sales                  $ 3,630,000    $ 3,907,000   $ 7,537,000
Cost of Sales                2,612,000      2,501,000     5,113,000
Gross Profit                 1,018,000      1,406,000     2,424,000

Operating Expenses           1,207,000        311,000 (E) 1,518,000
Depreciation                    86,000        156,000       242,000
Goodwill Amortization             --          197,000 (F)   197,000
Net Interest and Other
 Expense                        46,000         58,000 (G)   104,000
    Total Expenses           1,339,000        722,000     2,061,000

Pre-Tax Income(Loss)          (321,000)       684,000       363,000
Income Tax                        --          326,000 (H)   326,000
Net Income (Loss)             (321,000)   $   358,000   $    37,000
Earnings Per Share                                      $      (.19)
Weighted Average Shares
  Outstanding                                           $       .01
Shares Outstanding           1,700,000                    7,271,000

NOTES:

 (E) Compensation expense adjusted to reflect current salary
     arrangements.

 (F) Amortization of $15,700,000 of goodwill over 20 years.

 (G) No adjustment is made for imputed interest expense on
     acquisition financing.
     Debt financing was not utilized for the acquisition.

 (H) Reduced income tax for White Mountain is based on the
     assumption that Arguss could utilize Conceptronic net
     operating losses to offset White Mountain operating income.

CONTACT: Arguss Holdings, Inc.

Arthur Trudel, CFO

301-315-0027