Cedar Group reports record sales for the third quarter ended June 30, 1995.

MONTREAL, Canada--(BUSINESS WIRE)--August 14, 1995--Cedar Group Inc. (NASDAQ/NMS:CGMV; VSE:CGM) today announced its financial results for the third quarter ended June 30, 1995.

In making the announcement, Cedar Group stated that sales for the Quarter increased by 55% over the same period last year and were a record for any quarter in the company's history.

The consolidated statements of operations for the period have been adjusted to reflect the Company's acquisition of Dominion Bridge Inc., effective March 9, 1994, and the acquisition of Steen Contractors Limited, effective April 1, 1995.

During this quarter, the company earned $0.14 per share on net income of $2,003,000. This compares to $0.08 per share on net income of $673,000 for the same period in the previous year. Total sales for the third quarter increased to $40,236,000 from $25,907,000 for the same period in the previous year. The weighted average number of shares outstanding increased from 8,234,245 in the third quarter of 1994 to 14,528,691 for the period ending June 30, 1995. (Table follows)

Recently Cedar Group closed its acquisition of 75% of the equity of Steen Contractors Limited, secured a new line of bonding for CDN$200 million with Zurich Insurance Company and formalized its 70% interest in its Joint Venture with the Canadian Center for Composite Materials.

Commenting on the results, Dr. Nicolas Matossian, Cedar Group President and Chief Operating Officer stated "The Steen acquisition has already added tremendous value to Cedar Group; it brings another complementary dimension to Dominion Bridge's turnkey capability and will contribute significantly to its strategy to secure recurring revenues. Our combined backlog has grown considerably and operating margins will again be improved with the economies of scale this acquisition brings as evidenced by the attached table."

Michel L. Marengere, Cedar Group Chairman and Chief Executive Officer noted "This quarter is further affirmation that we are moving closer towards our corporate goals and vision. The Steen Group acquisition was achieved without shareholder dilution. Our DB/CMC Technology Joint Venture was awarded its first contract. Furthermore, our additional bonding facility has enhanced our financial strength. These achievements and positive results bode well for the continued growth of Cedar Group."

CEDAR GROUP INC., registered in Conshohocken, Penn. and headquartered in Montreal, Quebec, is an international engineering infrastructure, project management, aerospace and industrial metal transformation company. CEDAR GROUP INC.'s subsidiary, Dominion Bridge Inc., has 115 years experience and has a long-term successful record in international development projects. -0-

NOTE: All figures are stated in U.S. dollars unless otherwise indicated.

This news release is neither approved nor disapproved by the Vancouver Stock Exchange.

This news release has been duly signed by an officer of CEDAR GROUP INC. -0-

                             CEDAR GROUP INC.
               Unaudited Consolidated Statement of Operations
        Three Months and Nine Months Ended June 30, 1995 and 1994
             (In thousands of U.S. dollars, except share data)

                                                          9 months
                          3 months   3 months   9 months    ended
                            ended      ended      ended    June 30,
                           June 30,   June 30,   June 30,   1994
                            1995       1994       1995     (Note 1)

Sales                       40,236    25,907     100,326    43,711

Cost of sales               31,958    22,346      83,768    36,085

Gross profit                 8,278     3,561      16,558     7,626

                             20.57%    13.75%      16.50%    17.45%

Income from an operating
 joint venture                 817         0         817         0
Selling, general &
 administrative             (6,654)   (2,690)    (10,003)   (4,398)
Other income                   824       801       1,740       678

Profit (loss) from
 operations (EBITDA)         3,265     1,672       9,112     3,906

EBITDA per common share
 and equivalent               0.22      0.20        0.64      0.62

Depreciation and
 amortization                 (735)     (688)     (2,242)   (1,767)

Profit (loss) before
 interest and taxes (EBIT)   2,530       984       6,870     2,139

EBIT per common share and
 equivalent                   0.17      0.12        0.48      0.34

Interest income (expenses),
 net                           147      (189)        145      (415)

Income taxes                  (356)        0      (1,728)        0

Net income (loss) before
 minority interest           2,321       795       5,287     1,724

Dividend on preferred shares   (70)        0         (70)        0
Minority interest             (248)     (122)       (159)     (668)

Net income (loss)            2,003       673       5,058     1,056

Weighted average
 number of common
 shares and equivalent  14,528,691 8,234,245  14,245,678 6,344,551

Net income (loss) per common
 share and equivalent (EPS)   0.14      0.08        0.36      0.17

Note 1: The consolidated statements of operations contained in these
financial statements have been adjusted to reflect the Company's
acquisition of DOMINION BRIDGE INC., effective March 9, 1994 and the
acquisition of STEEN CONTRACTORS LIMITED, effective April 1, 1995.

CONTACT: Cedar Group Inc.

Eric Boyd

514/634-3551

or

Strategic Growth International Inc.

Stan Altschuler or Richard Cooper, 516/829-7111