Dominion Bridge Corporation Announces Profitable 3rd Quarter, Together With Record Backlog, Improved Sales and Margins.

MONTREAL--(BUSINESS WIRE)--Aug. 13, 1997--Dominion Bridge Corporation (NASDAQ/NMS: DBCO; VSE: DMO.U), today reported net earnings of $0.02 per share, up from a loss of $.01 in the previous quarter. For its third quarter, DBC achieved record sales of $136 million at improved margins.

DBC reported that its operating margins were at 10.9% for the quarter, compared with 10.0% in the previous quarter. EBITDA was $0.17 per share, almost double the $0.08 per share registered of the second quarter.

In line with its drive to reduce fixed costs and overhead, SG&A dropped significantly from $l4.9 million to $11.1 million, for a $3.8 million improvement for the three months. Interest costs at $700,000 were less than half those recorded for the quarter ended March 31, 1997, reflecting reduction from $30 million to $15 million in the Bankers Trust Loan.

Comparing its current results with previous periods, DBC indicated that the highlights were the strong performance of the Pipeline Division, started in January, that will have estimated total sales of over Cdn. $80 million by fiscal year-end and has been recording above average margins and profits. In addition, Davie Industries, in the last two months of the third quarter, registered a modest profit, excluding negative goodwill. The balance of North American operations, with the exception of one Western division, earned an operating profit almost sufficient to cover its share of overhead. Significant expenses or accruals related to the proxy solicitation contributed to a reduction of DBC's overall profitability for the period.

DBC's Asia Pacific subsidiary, McConnell Dowell Corporation ("MDC") recorded excellent results, for the DBC third quarter which coincides with MDC's year-end. These MDC fourth quarter results were enhanced significantly by a strong performance in its Queensland Pipeline project which earlier had been delayed but which is now reported to be profitably ahead of schedule.

DBC closed its third quarter with aggregate backlog in excess of $600 million to establish a new record level.

Michel L Marengere, chairman and chief executive officer, commented, "As projected, rationalization of the North American operations, together with the strong performance of our Asia Pacific subsidiary, have combined to return DBC to profitability." -0-

                       Dominion Bridge Corporation
               Unaudited Consolidated Statement of Operations
                     Nine months ended June 30, 1997
            (In thousands of U.S. dollars except share data)

                           3 Months    3 Months    Year to     Year to
                             Ended       Ended       Date        Date
                          June 30, 97 June 30, 96 June 30, 97 June 30, 96

Sales                       136,018     132,100     393,554     237,058
Cost of sales               121,166     116,599     350,399     204,648
Gross profit                 14,852      15,501      43,155      32,410

Selling, General
   & Administrative         (11,132)    (11,484)    (38,400)    (20,834)
Income-Operations
  from Joint-Venture            373         190         856         922
Other Income (Expense)          733         461       5,052         695
Profit(loss) from
  operations (EBITDA)         4,826       4,668      10,663      13,193

EBITDA per Common
  Share and Equivalent         0.17        0.19        0.37        0.67

Depreciation and
  Amortization                 (707)     (1,963)     (3,554)     (3,439)
Profit(loss) before
  interest and taxes (EBIT)   4,119       2,705       7,109       9,754

EBIT per Common
  Share and Equivalent         0.14        0.11        0.25        0.49

Interest Income(expense)       (705)       (949)     (3,624)       (906)
Income Taxes                 (1,980)       (446)     (3,129)     (3,163)
Net Income(loss) before
  minority interest           1,434       1,310         356       5,685

Minority Interest              (964)     (1,059)     (1,337)     (1,275)

Net Income (Loss)               470         251        (981)      4,410

Net income per
  common share
  and common share
  equivalent
    Primary                    0.02        0.02       (0.03)       0.27
    Fully Diluted              0.02        0.01       (0.03)       0.22

Weighted average number
  of common shares
  and common share
  equivalent outstanding
    Primary              29,003,648  16,331,161  28,450,361  16,374,585
    Fully Diluted        29,003,648  24,632,450  28,893,818  19,772,748
-0-

All companies do not calculate EBITDA in the same fashion and the measure as presented in this table may not be comparable to similarly titled measures reported by other companies.

CONTACT: Porter, Le Vay & Rose, Inc.

Michael Polyviou

[phone]

-OR-

Dominion Bridge Corp.

Francois Morin

[phone]