Corrpro files Form 10-K and announces expected first quarter loss.

MEDINA, Ohio--(BUSINESS WIRE)--July 14, 1995--Corrpro Companies, Inc. (NYSE:CO) announced today the filing of its 1995 annual report on Form 10-K with the Securities and Exchange Commission, that it expects a first quarter loss and that it has negotiated with its principal bank lender an amendment of its revolving credit agreement and a waiver of its noncompliance at March 31, 1995 with certain financial covenants.

Joseph W. Rog, Chairman of the Board, President and Chief Executive Officer, states to the Company's shareholders in the annual report, ``A number of factors contributed to lower than expected year-end financial results and incorrect accounting identified during the year-end audit caused the significance of these factors to be understood much later than we or our shareholders would have wanted. To begin with, we did not realize the full extent to which domestic costs were being incurred. Secondly, our most recent acquisitions created a shift in our mix of business from higher margin engineering services to lower margin product sales. Third, our sales volume was depressed in several international markets where we expected substantial growth. Fourth, we have not fully assimilated the seven acquisitions we've made over the past 15 months. Finally, we experienced unanticipated difficulties with the start-up of Corrtherm, our anode foundry operations in Belle Chasse, Louisiana.

As a result of these events, we anticipate that the Company will continue to experience a loss over the short term followed by a gradual return to profitability. It will take some time to work out the difficulties associated with the Corrtherm acquisition, to complete low margin work now in the backlog, to fully implement management information systems to produce more timely and accurate data, and to reduce our overall operating costs in line with the changing mix of our business from service to product sales.

We've launched a series of restructuring measures designed to reduce our costs and increase our profitability, productivity and cash flow. Immediate emphasis has been placed on reducing SG&A costs to reflect our business mix, employing pricing discipline to obtain adequate margins, and operating the business with a more intense focus on sound working capital management. We have confidence in the future of our company.''

The distribution of the Company's Annual Report To Shareholders for the fiscal year ending March 31, 1995 has been delayed due to the difficulty in determining the Company's financial results because of the unanticipated changes of the Company's top accounting executives and the need to devote time to negotiating an amendment to the revolving credit agreement and a waiver of the Company's noncompliance with certain financial covenants with its principal bank lender. It is anticipated that the distribution of the Annual Report To Shareholders will commence on or about July 27, 1995. Shareholders may obtain a copy of the Form 10-K by contacting the Company.

Corrpro, headquartered in Medina, Ohio, and with over 50 fully staffed offices worldwide, is the leading provider of corrosion control engineering services, systems and equipment to the infrastructure, environmental and energy markets throughout the world. Corrpro is the U.S. and Canadian market share leader of cathodic protection systems which are applied to such structures as bridges, above-ground and underground storage tanks, parking garages, electric power plants, oil and gas pipelines, transit systems, water treatment systems, offshore oil rigs and ships.

Corrpro is also the U.S. market share leader in rectifiers, a key power supply component in cathodic protection systems and the worldwide leader in the maritime cathodic protection market, corrosion monitoring systems and manufacturing of anodes for cathodic protection systems. -0-

CORRPRO COMPANIES, INC.
CONSOLIDATED STATEMENT OF INCOME
                                           Years Ended March 31,
                                            1995          1994
Revenues:
 Engineering and construction services  $ 62,395,162   $ 48,165,531
 Product sales                            63,614,068     21,370,450
                                        ____________________________
                                         126,009,230     69,535,981
                                        ____________________________
Cost of sales:
 Engineering and construction services    40,466,980     29,715,055
 Product sales                            48,759,198     16,118,188
                                        ____________________________
                                          89,226,178     45,833,243
                                        ____________________________
Gross profit                              36,783,052     23,702,738

Selling, general and administrative
 expenses                                 30,569,781     16,442,578
Unusual charge for stock appreciation
 rights                                            -      1,622,218
                                        ____________________________
Operating income                           6,213,271      5,637,942
                                        ____________________________
Other income (expense):
 Interest expense                         (1,111,870)      (886,983)
 Equity in net income of affiliates                -        188,122
 Other                                       179,427         49,249
                                        ____________________________
   Total other expense                      (932,443)      (649,612)
                                        ____________________________
Income before income taxes,
 extraordinary charge and cumulative
 effect of change in accounting
 principle                                 5,280,828      4,988,330
Provision for income taxes                 2,444,412      2,282,462
                                        ____________________________
Income before extraordinary charge
 and cumulative effect of change
 in accounting principle                   2,836,416      2,705,868
Extraordinary charge                               -       (102,105)
Cumulative effect on prior years of
 change in accounting principle                    -        136,237
                                        ____________________________
Net income                              $  2,836,416   $  2,740,000
                                        ____________________________
                                        ____________________________
Income before extraordinary charge
 and cumulative effect of change
 in accounting principle per share      $       0.43   $       0.67
Extraordinary charge per share                     -          (0.02)
Cumulative effect of change in
 accounting principle per share                    -           0.03
                                        ____________________________
Net income per share                    $       0.43   $       0.68
                                        ____________________________
                                        ____________________________
Number of Common and Common Share
 equivalents                               6,667,350      4,027,210
                                        ____________________________
                                        ____________________________

CONTACT: Corrpro Companies, Inc., Medina

Robert M. Adamov, 216/723-5082