Armbro Enterprises announces record results.

BRAMPTON, ONTARIO--(BUSINESS WIRE)--March 10, 1997--(TSE ARE.) Armbro Enterprises Inc. reports another year of strong earnings, assisted by continued profitability in the fourth quarter.

Armbro achieved record revenues of $206.0 million for the 12 months ended December 31, 1996, a 20 percent increase over 1995 revenues of $172.3 million.

Net income of $9,003,000 for the year provided earnings per share of $1.16 or $0.90 on a fully diluted basis. This compares to net income in 1995 of $13,958,000 and earnings per share of $2.23 or $1.40 fully diluted. The 1995 financial results include a $7,018,000 gain on the forgiveness of debt and a $833,000 gain on the disposal of an investment. The 1996 financial results reflect a $980,000 charge to income for the decline in value of a property held for sale. Subsequent to year end this property was sold, with cash proceeds of approximately $2.7 million being used to reduce debt.

Armbro achieved record earnings from operations (earnings before taxes and non-operating items) of $10.4 million for the year, a 72 percent increase over last year.

John Beck, Chairman and CEO, said: "The Company's strong operating results reflect the continued successful progression of the Highway 104 and Highway 407 toll highway projects and the continued improvement in the margins of the Company's non-toll highway contracts. The improved financial performance is also attributed to reduced interest charges that result from the decline in long-term debt and from interest rate reductions negotiated on most of the Company's equipment leases." He adds: "All of our employees have strived to achieve the success we are now enjoying."

The Company's existing backlog of contracts provides a satisfactory amount of workload into the first half of 1997. The number of contract bidding opportunities from which the Company is benefiting continues its positive trend from previous years.

Armbro Enterprises Inc. is a leading Ontario developer of transportation related infrastructure. Armbro's principal activities include the construction of roads, highways, access ramps, overpasses, bridges, airport runways, toll highways and other related infrastructure. Armbro is also involved in the manufacturing and sale of asphalt and aggregate products relating to the construction industry and provides materials engineering and quality testing services to the construction industry.

Through its 25 percent interest in Canadian Highways International Corporation ("CHIC"), Armbro is also active in the development, design, construction, financing, operation and management of toll highways. This consortium of leading Canadian contracting and engineering firms is presently completing two large toll road projects in Canada, Highway 407 in Ontario and Highway 104 in Nova Scotia. CHIC has also recently prequalified to bid on two large toll road projects, one in Canada and one overseas. -0-

  Financial Highlights

  For the 12 months ended December 31
    ($000s except per share data)
                                     1996           1995

  Revenues                          205,968        172,267

  Earnings from Operations           10,438          6,054

  Net Income                          9,003         13,958

  Earnings per Share - Basic      $   1.16      $    2.23
                  Fully Diluted   $   0.90      $    1.40


  Cash Flow from Operating
  Activities                         14,067          7,982
          (Before changes in working capital items)


  Current Assets                     59,704         52,853
  Non-current Assets                 38,165         34,199

  Current Liabilities                49,601         52,012
  Long-term Debt                     17,893         20,234
  Other Liabilities                   8,385          2,144

  Shareholders Equity                21,990         12,662

CONTACT: Armbro Enterprises Inc.

Shirley Duffy

905/454-3737