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U.S. ATTORNEY'S OFFICE TERMINATES INVESTIGATION OF MILITARY TRUCK BIDDING CONTRACT

 HOUSTON, Nov. 4 /PRNewswire/ -- Stewart & Stevenson Services, Inc. (NASDAQ: SSSS), a leading manufacturer of diesel and gas turbine powered equipment, received notice from the U.S. Attorney's office in Atlanta that an investigation into the bidding for the company's $1.2 billion military truck contract has been terminated.
 Last March, the company learned that the Federal Bureau of Investigation was conducting a general investigation into the solicitation process relating to the company's contract to manufacture 2-1/2 and 5-ton trucks for the U.S. Army. The company believed that this investigation was the result of false allegations made by a disgruntled former employee of a consulting firm. At that time, company officials said that they believed no findings of improper conduct would be found against Stewart & Stevenson. This notice now confirms that belief.
 In a separate matter the company learned, through representatives of the Department of Justice, that a disgruntled former consultant filed suit on behalf of the United States Government alleging that the company engaged in illegal pricing practices in its 1987 subcontract to supply diesel generator sets for installation in the Kingdom of Saudi Arabia. The $7 million suit, which also claims treble damages, was filed under seal which now has been lifted. The suit is the latest action in a long-standing dispute between Stewart & Stevenson and John Runion. Runion acted as a consultant to the company in connection with the Peace Shield Contract.
 The Department of Justice has not yet decided whether it will intervene and assume responsibility for handling the case. Stewart & Stevenson has conducted its own internal investigation into the matter and has concluded that the allegations contained in the complaint have no merit. Stewart & Stevenson has further asked representatives of the Department of Justice for any information which they have substantiating the allegations contained within the complaint. In the event the case proceeds forward, Stewart & Stevenson will vigorously defend the allegations made in the complaint.
 -0- 11/4/93
 /CONTACT: David R. Stewart, director, investor relations, Stewart & Stevenson Services, Inc., 713-868-7657/
 (SSSS)


CO: Stewart & Stevenson Services, Inc. ST: Texas IN: SU:

DH -- NY089 -- 0800 11/04/93 14:11 EST
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Publication:PR Newswire
Date:Nov 4, 1993
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