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HUNTINGDON INTERNATIONAL HOLDINGS PLC REPORTS ITS FINANCIAL RESULTS FOR THE QUARTER ENDED DEC. 31, 1992

 HUNTINGDON, England, Feb. 3 /PRNewswire/ -- Huntingdon International Holdings plc today issued the following:
 Your company's results for the quarter ended Dec. 31, 1992 are reported herein. I am pleased to announce that despite continued difficult trading conditions, the group's sales (net of subcontract costs) were 39 percent higher than the same period last year and operating income increased by 13 percent. As anticipated, pre-tax earnings and net income were similar to those achieved last year.
 The increase in new assignments in our Life Sciences group which I reported last quarter, have continued and revenues for the group increased by 9 percent with growth at both Huntingdon Research Center (HRC) and Leicester Clinical Research Center. Operating margins improved as compared to the same period last year. The decision to create our own clinical testing unit utilizing state of the art technical and medical standards is now paying off, with strengthening order books and increased associated laboratory analyses which are performed at HRC.
 Setbacks from delays in the issuance of permits and funding difficulties of our customers led to a 2 percent decline in sales, compared to the same period last year, in our US Engineering/Environmental group. Despite this, generally depressed markets and seasonal factors, the group achieved a reasonable operating margin. The group was particularly impacted by delays in several large drilling contracts and reduced demand in both the underground storage tank and environmental site assessment markets.
 Since Travers Morgan (TM) was not part of the group until the end of December 1991, the inclusion of their revenue this quarter accounted for most of the increase in the group's sales. TM's UK construction and transportation markets remain difficult and very competitive, but extensions to some longer term engineering contracts have resulted in an improved operating margin.
 During the quarter, the Conwy Tunnel in North Wales, which was designed and project managed by TM, won the Special Award of the Institution of Structural Engineers for engineering excellence. It is our continuing commitment to work of this standard that enables Travers Morgan to successfully win orders in difficult markets and TM is one of only a small number of UK engineering and environmental consultants who are reporting increases to their order backlog.
 As we enter what has been historically our most challenging quarter, we are not anticipating any immediate change in market conditions. Improvements being experienced in our Life Sciences group and the benefits of a strong backlog at Travers Morgan will be tempered by continued weakness in the UK construction market and the US economy in general. January has already produced a dismal array of snow, ice storms and floods across the U.S. and the potential impact of adverse weather conditions makes forecasting especially difficult.
 Looking further ahead into the second half of 1993, improvement in the operating performance of our U.S. Engineering/Environmental group, which has been impacting overall performance recently, is the key to achieving the growth anticipated for the company. To that end we have concentrated the technical resources of this group on the two markets we believe will rebound - infrastructure and environmental services; we have focused effort on marketing and selling to national accounts; and we have reduced costs to the minimum possible without jeopardizing our ability to achieve forecasted sales. We believe that the holiday which U.S. industry has enjoyed with respect to cleaning up the environment is nearly over, and that this market will return to more normal levels of demand and pricing supported by regulations to implement the Clean Air Act as they are drafted. In addition we believe that any increase in funding for infrastructure projects initiated by the new administration, will directly benefit our U.S. Engineering/Environmental group and equally importantly utilize some of the spare industry capacity, thereby allowing more realistic pricing.
 As the higher levels of new orders experienced by Life Sciences are converted into studies, we anticipate steady growth through the year for this group.
 At Travers Morgan, we continue to bear the costs of reorganizing and reprofiling the company in changing and depressed markets. However, we are committing investment to environmental initiatives and development of our activities in the Asia Pacific region, where we are confident that major returns are available.
 We enter 1993 with signs of better prospects for both the U.S. and UK economies later in the year. Despite severe recessions which have led to bankruptcies and minimal backlogs in the construction industry, your company has continued to trade profitably and has increased market share. We have channeled investment towards new market opportunities for each of our operating groups and believe they are positioned to take immediate advantage of the improved conditions when they occur. We believe the long term outlook for your company continues to be good.
 HUNTINGDON INTERNATIONAL HOLDINGS PLC
 Summary of Consolidated Earnings
 (Pounds in thousands)
 Quarter ended Dec. 31 1992 1991
 Revenues $43,567 $31,035
 Subcontract costs 3,452 2,095
 Revenues-net of subcontracts 40,115 28,940
 Cost of sales 31,643 21,524
 Gross profit 8,472 7,416
 Selling, general and administrative (3,915) (3,395)
 Operating income 4,557 4,021
 Other income/(expense) (832) (440)
 Income before tax 3,725 3,581
 Taxes 914 862
 Net income 2,811 2,719
 Dividend -- --
 Earnings per share - pounds 0.029 0.029
 Earnings per ADR - dollars 0.226 0.226
 Summary of Consolidated Balance Sheet
 (Pounds in thousands)
 Period ended Dec. 31 1992 1991
 Fixed assets $77,731 $68,461
 Current assets 62,574 56,036
 Creditors (due within 1 year) (29,124) (32,291)
 Net current assets 33,450 23,745
 Creditors (due after 1 year) (16,576) (12,817)
 Total assets less liabilities 94,605 79,389
 Capital and reserves 61,580 52,665
 Convertible capital bond 33,025 26,724
 Total equity and bond 94,605 79,389
 NOTES:
 (1) Earnings per share is based on an average of 98,290,426 (1991; 95,111,586) shares, outstanding during the period.
 (2) Earnings per ADR is calculated using the exchange rate of $1.5793 equal 1 pound sterling for convenience. Each ADR represents five ordinary shares.
 (3) These results have been prepared in accordance with UK GAAP and are unaudited. The company has also prepared a quarterly report on Form 1OQ in which the results have been prepared in accordance with US GAAP, which has been filed with the Securities and Exchange Commission (SEC). Copies of the report are available from the SEC, the New York Stock Exchange and the company's registered office.
 Copies of this quarterly report will be mailed to shareholders and are available on request from the registered office.
 -0- 2/3/93
 /CONTACT: Dr. B. C. Wooley of HIH USA Management, Inc., 716-735-3400, or Jamie Carnwath of Huntingdon International Holdings plc, in England, 480-433-466/
 (HTD)


CO: Huntingdon International Holdings plc ST: New York IN: SU: ERN

LR-OS -- NY044 -- 2407 02/03/93 12:42 EST
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