Continental Global Group, Inc. Announces Preliminary Results for the First Quarter of Fiscal Year 2001.

Business Editors

WINFIELD, Ala.--(BUSINESS WIRE)--April 26, 2001

Continental Global Group, Inc. announced preliminary and estimated financial results for the first quarter ended March 31, 2001. Net sales for the first quarter decreased by $3.3 million, or 7.9%, to $38.9 million from $42.3 million during the same period in 2000. The decline was primarily related to a decrease in sales at the Company's U.S. operations of $3.6 million, or 10.9%, during the period. This was offset by a small increase in sales at the Company's foreign subsidiaries of approximately $0.3 million. Backlog levels improved from $44.6 million at January 31, 2001 to $52.9 million at March 31, 2001, comprised of $36.8 million of domestic backlog and $16.1 million of foreign backlog. While the Company has experienced an improvement in its backlog, there can be no assurance that cancellations of orders in backlog will not occur.

EBITDA for the first quarter increased by $0.7 million to $2.3 million from $1.6 million during the same period in 2000. This EBITDA was consistent with the EBITDA level of $2.2 million in each of the third and fourth quarters of 2000. EBITDA for the trailing twelve months ended March 31, 2001 was $7.9 million. The first quarter increase was largely the result of restructuring initiatives undertaken to reduce costs in the Company's foreign subsidiaries and a favorable mix of higher margin business versus the comparable period in 2000. These margin improvements were offset by the 7.9% decline in consolidated net sales.

The Company's net loss before income taxes in the first quarter of 2001 was ($2.1) million, representing a $0.9 million improvement over the net loss before income taxes of ($3.0) million in the first quarter of 2000.

On April 3, 2001, the Company commenced a tender offer to purchase for cash up to $54.0 million, or 45%, of its 11% Series B Senior Notes Due 2007 (the "Senior Notes"), which are currently outstanding in the aggregate principal amount of $120.0 million. The tender offer will expire at 5:00 p.m., New York City Time, on May 1, 2001. The tender offer is subject to the terms and conditions set forth in the Offer to Purchase, dated April 3, 2001, which has been filed with the Securities and Exchange Commission on Form 8-K.

At March 31, 2001, the Company had cash and cash equivalents of approximately $17.1 million and approximately $13.0 million available for use under its domestic credit facility, representing approximately $30.1 million of liquidity before the April 1, 2001 payment of interest on the Senior Notes. Assuming that the Company purchases $54.0 million, or 45%, of the Senior Notes, and including the April 1, 2001 payment of interest on the Senior Notes, the Company, at March 31, 2001, would have had cash and cash equivalents of $4.0 million and approximately $5.8 million available for use under the domestic credit facility, representing approximately $9.8 million of liquidity.

In addition, at March 31, 2001, the Company had total indebtedness of $139.2 million of which $19.2 was senior secured indebtedness. Assuming the Company purchases $54.0 million, or 45%, of the Senior Notes, and including the April 1, 2001 payment of interest on the Senior Notes, the Company, at March 31, 2001, would have had total indebtedness of $100.6 million of which $34.6 million was senior secured indebtedness.

On April 24, 2001, Continental Global Group, Inc. hosted a conference call during which management discussed the Company's operating results for the fourth quarter and fiscal year ended December 31, 2000 and the Company's tender offer to purchase a portion of the Senior Notes. A recording of the conference call will be available through May 15, 2001 and is accessible by dialing into the following telephone numbers:

In the U.S.: [phone] Passcode: 18662265

Outside the U.S.: [phone] Passcode: 18660915

Any questions about the Tender Offer, should be directed to CIBC World Markets, the Dealer Manager for the Tender Offer. The contact at CIBC is Kevin McLeod at [phone].

Continental Global Group, Inc. is a leading worldwide manufacturer and distributor of bulk material handling and replacement conveyor equipment, primarily for use in the mining industries.

Significant factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, the following:

--general economic and business conditions, which will, among other things, impact demand for the Company's products;

--raw material costs and availability;

--import protections and regulation;

--the loss of any significant customers;

--changes in, or the failure to comply with, government regulations; and

--currency and exchange rate fluctuations.

These factors are not necessarily the only factors that could cause actual results to differ materially from those expressed in any of the Company's forward-looking statements. Other unknown or unforeseeable factors also could have material adverse effects on the Company's future results. The forward-looking statements included in the Offer to Purchase are made only as of the date thereof and the Company undertakes no obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

THIS ANNOUNCEMENT IS NOT AN OFFER TO PURCHASE OR A SOLICITATION OF AN OFFER TO SELL WITH RESPECT TO THE SENIOR NOTES. THE OFFER IS BEING MADE SOLELY BY THE OFFER TO PURCHASE, DATED APRIL 3, 2001, AND THE RELATED LETTER OF TRANSMITTAL, AS THE SAME MAY BE AMENDED FROM TIME TO TIME.