York Research Reports Record Nine Months Revenues of $291 Million.

NEW YORK--(BUSINESS WIRE)--Jan. 13--York Research Corporation, (NASDAQ: YORK) had record revenues for nine months ended November 30, 1997 of $291 million as compared to $20 million in the prior period. Quarterly revenues were $146, million up from $11 million in last year's third quarter.

Per share income for the nine months was $0.24 (including a previously reported extraordinary item) as compared to $0.38 last year. Third quarter per share earnings were $0.01 per share as compared to $0.14 last year. In the third quarter, as a result of the company's projecting a profit for the fiscal year ending February 28, 1998, as discussed below, the company has recognized an income tax benefit.

The dramatic increase in revenues resulted from the acquisition and subsequent growth of North American Energy Conservation, Inc. ("NAEC"), York's energy marketing subsidiary. Results of operations to date reflect startup and expansion activities. Increased income related to the Brooklyn Navy Yard Project will be recognized starting with the current fourth quarter. The company also expects a profitable fourth quarter from its energy marketing operations.

For the full year ending February 28, 1998 York projects revenues of approximately $465 million and earnings per share of approximately $0.52 including the extraordinary item.

In order to facilitate planned continuing growth and improving profitability, NAEC has executed a $20 million revolving credit line with Congress Financial Corporation. While currently unused, the line is expected to enhance NAEC's credit capability with market counterparties.

York is proceeding to construct the 100% owned 35 MW Big Spring, Texas windpower project, with full commercial operation scheduled to occur during the coming fiscal year.

York develops, owns and operates cogeneration and alternative energy projects and acts as a broker or marketer in wholesale power and energy storage transactions and a marketer of natural gas through its subsidiary, NAEC.

                               YORK RESEARCH CORPORATION
                           Financial Highlights (Unaudited)

                      For the Nine Months Ended  For the Three Months Ended
                        11/30/97      11/30/96    11/30/97      11/30/96

Total revenues        $290,571,502  $19,778,448 $145,977,311  $10,557,367

Income (loss)
 before income taxes   ($3,056,171)  $7,781,584  ($1,373,680)  $3,218,053

Income (loss) before
 extraordinary gain    ($1,681,171)  $5,719,584     $111,320   $2,176,053

Extraordinary gain, net of tax
 and allocation to
 minority interest      $5,436,367        ---          ---          ---

Net income              $3,755,196   $5,719,584     $111,320   $2,176,053

Earnings (loss) per share -- Primary:
   Per common share before
     extraordinary gain   ($0.11)        $0.38        $0.01       $0.14
   Extraordinary gain      $0.35           ---          ---          ---
   Per common share        $0.24         $0.38        $0.01       $0.14

Earnings (loss) per share -- Fully Diluted:
   Per common share before
     extraordinary gain   ($0.11)        $0.37        $0.01       $0.14
   Extraordinary gain      $0.35           ---          ---          ---
   Per common share        $0.24         $0.37        $0.01       $0.14

Weighted average number of common
  shares and common share
   equivalents        15,507,666    15,470,050   15,758,218  15,559,756

This press release contains forward-looking statements which are subject to change. The actual results may differ materially from those described in any forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements which speak only as of the date hereof. Additional information concerning potential factors that could affect the company's financial results are included in the company's Annual Report for the year ended February 28, 1997 and subsequent Quarterly Reports.

CONTACT: YORK RESEARCH CORPORATION

Dr. Kenneth Melmed, 212/557-6200

or

Porter, LeVay & Rose, Inc.

John Chuhran, Martin Skala, 212/564-4700