Cedar purchases remaining 25% of Steen Becker Group.

MONTREAL--(BUSINESS WIRE)--May 7, 1996--CEDAR GROUP, INC. (NASDAQ/NMS:CGMV)(VSE:CGM) today announced that it has brought its ownership of Steen to 100% by purchasing for cash from the minority shareholders in Steen the 25% of the common shares of Steen not already owned by Cedar.

The initial transaction which was consummated in July 1995 saw Cedar acquire 75% of the equity of Steen, with the balance to be bought by Cedar over the following two years. Due to the strong performance of Steen and the satisfactory transition period since the original purchase, Cedar decided to accelerate taking full control of the company.

Steen Contractors is a major Canadian mechanical contracting firm with operating divisions throughout Eastern Canada and the Northeastern U.S., catering to the commercial, institutional and industrial markets. Present major projects include the Molson Center in Montreal, the Canadian Trade Center in Toronto and the Atlantic City Heating and Cooling Plant in Atlantic City, N.J. Steen is profitable and has no long term debt.

Steinar Knai, chief executive officer of Steen and a Cedar Group vice president mentions that "The transition period incorporating Steen into the Cedar Group has gone much faster and smoother than foreseen and the good profitability and cash flow position of Steen has made it possible to purchase the remaining interest of the original shareholders one full year earlier than originally scheduled."

Nicolas Matossian, president and chief operating officer of Cedar Group noted that "We are very pleased with the added value and dimension that Steen has brought to our group over the past year and will now consolidate 100% of its earnings. The expected synergies from this acquisition are materializing faster than expected and we look forward to realizing the full potential of Steen's business."

Earlier this month Cedar Group announced that it has completed its buyout of United Dominion Industries Limited's interests in Dominion Bridge in two years rather than eleven years as was foreseen in the original agreement between Cedar and UDIL.

Cedar Group, Inc. is an international engineering and construction group headquartered in Montreal with major operating subsidiaries in Canada, the U.S. and Southeast Asia. -0-

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

CONTACT: Strategic Growth International

Stan Altschuler/Richard Cooper

516/829-7111

or

Cedar Group Inc.

Eric Boyd, 514/634-3550