Christiana accounting change permits inclusion of EVI earnings: nine months earnings to be restated to 64 cents per share versus 49 cents per share previously reported.

MILWAUKEE--(BUSINESS WIRE)--June 11, 1996--Christiana Companies Inc. (NYSE:CST) today announced a change in accounting for its investment in Energy Ventures Inc. (NYSE:EVI).

Christiana will now report on these holdings using the equity method. The change results in Christiana directly reporting its proportionate share of EVI's earnings, less a provision for deferred tax, in its financial statements. To date, Christiana has accounted for its investment in EVI by reflecting the fair value of these securities on its balance sheet and has not accounted for Christiana's proportionate share of EVI's earnings. Christiana's net earnings for the first three quarters and nine months ended March 31, 1996 will be restated. The effect of this restatement is an increase in reported net earnings for the period from $2,543,000 or 49 cents per share to $3,316,000 or 64 cents per share.

As previously announced on June 30, 1995, Christiana completed a tax free merger of its 60 percent owned subsidiary, Prideco Inc., into EVI and received 1,035,858 shares of EVI common stock. Concurrent with the Prideco merger, Christiana invested an additional $13,291,000, purchasing 912,873 EVI shares from EVI and from Prideco's minority shareholders. Total EVI share holdings are 1,948,731, representing a 10.5 percent ownership interest.

Christiana has continued to review the accounting for its holdings in EVI since the date of the merger and, based on a number of factors including the nature of its relationship with EVI, has now concluded that the equity method of accounting is most appropriate.

Generally accepted accounting principles require that prior period financial statements be restated when the equity method is applied to an investment previously accounted for under the cost method. The table below shows the impact this change will have on the statement of operations for each of the quarters in fiscal 1996. The change also will result in elimination of the market value adjustments for unrealized appreciation of the investment in EVI and the related impact on deferred tax liability from the company's consolidated balance sheets. The restatement will be reflected in the company's year end June 30, 1996 financial statements. -0-

                                                             Nine
                                                            months
                              Three months ended            ended
                      __________________________________  __________
                        9/30/95    12/31/95     3/31/96     3/31/96
                      __________  __________  __________  __________
Earnings before
 income taxes, as
 previously reported  $2,290,000  $  844,000  $1,105,000  $4,239,000
Adjustment for
 equity earnings         404,000     405,000     405,000   1,214,000
                      __________  __________  __________  __________
Restated earnings
 before income taxes   2,694,000   1,249,000   1,510,000   5,453,000

Restated income tax
 provision             1,056,000     489,000     592,000   2,137,000
                      __________  __________  __________  __________

Restated net earnings $1,638,000  $  760,000  $  918,000  $3,316,000
                      __________  __________  __________  __________
                      __________  __________  __________  __________
Restated net earnings
 per share                 $0.32       $0.14       $0.18       $0.64
                      __________  __________  __________  __________
                      __________  __________  __________  __________

CONTACT: Christiana Companies Inc., Milwaukee

William T. Donovan, 414/291-9000