Corrpro provides additional information on preliminary fiscal 1995 results.

MEDINA, Ohio--(BUSINESS WIRE)--June 5, 1995--Corrpro Companies, Inc. (NYSE:CO) announced last week, based on preliminary financial results, that a fourth-quarter loss and year end adjustments would lower earnings for fiscal 1995 to a range of $.40 to $.45 per share, substantially lower than analysts' estimates of $1.15 to $1.20 per share.

Based on an ongoing review of preliminary results by the Company's accounting staff and independent auditors under the direction of the Audit Committee of the Board of Directors, the Company has determined that the fourth quarter loss is due to approximately $4 million of year end pretax adjustments related to carrying value of inventories, receivables and certain other assets, including a write-off of approximately $.5 million as a result of the failure of one of its subcontractors to complete a domestic project. The Company is continuing to review whether certain of these adjustments more appropriately should have been reported in the prior quarter or quarters. Also contributing to the loss were the continuation of the previously reported shift from higher margin engineering services to lower margin product sales, interest expense of approximately $.6 million due to financing of acquisitions and working capital needs, and significantly increasing selling, general and administrative expenses incurred in part in anticipation of increased revenues.

Earnings for the full year also were lower than expected because substantial revenue growth has not yet materialized from the federal government regulations and guidelines concerning corrosion protection systems for underground storage tanks; from the protection of concrete structures, aboveground storage tanks, and marine vessels; and from the planned operations in Kazakhstan and Mexico. These were replaced in part by revenues generated from acquisitions, but the businesses acquired earned lower margins which, in some cases, were impacted adversely by substantial increases in raw material prices in the third and fourth quarters. To a lesser extent, revenues were replaced by sales of lower margin foundry products in the third and fourth quarters. In addition, earnings declined in the Saudi Arabia operation.

Analysis of the Company's results has been made more difficult by the continuing integration of recently acquired businesses and the introduction of a new computer based information system in the third quarter. The Audit Committee is continuing to work, with the Company's independent auditors to review the Company's financial staffing and systems, and plans to report to the full Board later this week. The Company will release its audited financial results next week.

Chairman Joseph W. Rog stated, ``These preliminary results are unexpected and disappointing. The Company's basic business remains sound, but, at a minimum, we will have to work harder to obtain higher margin business. In addition, our ability to integrate the operations of our acquired businesses and to manage the significant growth resulting from these acquisitions remain critical to our future success. We intend to focus on our existing business before making any further substantial acquisitions. We also must improve our accounting function and our information systems to keep pace with the demands arising from the growth of our business.''

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.

CONTACT: Corrpro Companies, Inc., Medina

Robert M. Adamov, 216/723-5082