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EMONS HOLDINGS REPORTS THIRD QUARTER RESULTS AND REACHES AGREEMENT IN PRINCIPLE TO MODIFY BUSINESS AND FINANCING TERMS OF RAIL SUBSIDIARY

EMONS HOLDINGS REPORTS THIRD QUARTER RESULTS AND REACHES AGREEMENT IN
 PRINCIPLE TO MODIFY BUSINESS AND FINANCING TERMS OF RAIL SUBSIDIARY
 YORK, Pa., May 13 /PRNewswire/ -- Emons Holdings, Inc. (NASDAQ: EMHO) today announced a loss from continuing operations of $534,070 for the three months ended March 31, 1992, as compared to a loss of $613,809 for the three months ended March 31, 1991.
 Including discontinued operations and preferred dividend requirements, the company recorded a loss applicable to common stock of $598,557 or $.11 per share, for the fiscal 1992 third quarter, as compared to a loss of $404,944 or $.08 per share, for the third quarter of fiscal 1991. Revenues increased to $2.59 million from $2.44 million.
 For the nine-month period ended March 31, 1992, the company reported a loss from continuing operations of $1,478,406, as compared to a loss of $1,746,544 for the nine months ended March 31, 1991. Including discontinued operations and preferred dividend requirements, the company had a loss applicable to common stock of $1,675,431, or $.31 per share, for the nine months ended March 31, 1992, as compared to a loss of $1,245,858, or $.25 per share, for the nine months ended March 31, 1991.
 The company also announced that one of its subsidiaries, the St. Lawrence & Atlantic Railroad Company (SLR) reached an agreement in principle with both the Canadian National Railway and its primary lender to revise the financial terms of its operating/marketing and loan agreements. The finalization of these changes is subject to the negotiation of amendments to existing agreements. That process is expected to be completed shortly. Robert Grossman, chairman and president, stated that assuming final amendments to the agreements are executed, the company expects the resulting changes to have a substantial positive impact on the company's results for the fourth fiscal quarter ending June 30, 1992. He further stated that as a result of these amendments, he expects the St. Lawrence and Atlantic to be profitable going forward. In fiscal 1991 SLR had a loss of approximately $900,000 and in the nine months ended March 31, 1992, it lost approximately $600,000, both before income taxes.
 Grossman further stated that the improved results for the three months ended March 31, 1992, as compared to the prior year's three months is primarily the result of an improvement in business and a reduction of administrative expenses due to cost reduction programs instituted last year. Railroad revenues increased 12 percent to $2.4 million due to higher carloadings and increased freight rates as compared to last year's quarter. He expects the fourth quarter to show a significant turnaround with the improvement primarily because of the agreement in principle discussed above and a continued improvement in business, mostly from the stepped up marketing program instituted earlier this year, and generally improved economic conditions. Grossman added that he expects this improvement to continue into the new fiscal year beginning July 1 and that Emons is on the right track toward a return to profitability. In addition, the company is actively exploring the acquisition of additional short-line railroads.
 Emons Holdings, Inc., a freight transportation and distribution services company headquartered in York, owns and operates short-line railroads, rail/truck transload facilities and provides companies with logistic services for movement and storage of their freight.
 Emons Holdings' shares of common stock and convertible preferred stock are traded in the Over-the-Counter securities market and the common shares are listed on NASDAQ under the symbol "EMHO."
 EMONS HOLDINGS, INC.
 (Unaudited)
 Periods ended Three months Nine months
 March 31 1992 1991(A) 1992 1991(A)
 Revenues $2,587,252 $2,437,316 $8,115,625 $7,687,217
 Loss from continuing
 operations (534,070) (613,809) (1,478,406) (1,746,544)
 Income from discontinued
 operations --- 275,134 --- 699,493
 Net loss (534,070) (338,675) (1,478,406) (1,047,051)
 Preferred dividend
 requirements 64,487 66,269 197,025 198,807
 Loss applicable to
 common stock (598,557) (404,944) (1,675,431) (1,245,858)
 Average shares
 outstanding(B) 5,650,638 5,050,112 5,342,787 5,039,496
 Loss per share from
 continuing
 operations(B) $(.11) $(.13) $(.31) $(.38)
 Earnings per share from
 discontinued operations --- .05 --- .13
 Loss per share(B) (.11) (.08) (.31) (.25)
 (A) Certain reclassifications have been made to fiscal 1991's financial statements to conform to fiscal 1992's presentations.
 (B) Does not include common share equivalents since they are anti-dilutive.
 /delval/
 -0- 5/13/92
 sylvania IN: TRN SU: ERN


KA-LJ -- PH009 -- 9556 05/13/92 10:08 EDT
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Date:May 13, 1992
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