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ALLIED CLINICAL LABORATORIES ANNOUNCES PRELIMINARY FOURTH QUARTER, FULL YEAR 1992 RESULTS AND AN ACQUISITION AGREEMENT IN PRINCIPLE

 NASHVILLE, Tenn., Jan. 20 /PRNewswire/ -- Based on preliminary figures, which are subject to final audit, Allied Clinical Laboratories, Inc. (NASDAQ-NMS: ACLB) announced today that it expects to report that its fourth quarter earnings were approximately $.25 per common share, an increase of 25 percent above the $.20 earned in the comparable quarter last year.
 Net revenues for the quarter were in the range of $32,500,000 to $32,700,000. Including these preliminary results, full year revenues increased to between $137,100,000 and $137,300,000, and earnings per share from operations increased to approximately $1.11 per share before a $.03 per share loss reserve for the disposition of certain California regional assets in the third quarter of 1992.
 The company noted that the California divestiture makes revenue comparisons more difficult in both the fourth quarter and the full year. Including the California divestiture and resulting substantial revenue reduction in the fourth quarter of 1992, the quarterly revenue increase was approximately 14 percent compared to revenues in the fourth quarter of 1991, which included California.
 The fourth quarter is historically the company's least profitable. This is primarily due to lower quarterly revenues due to holiday seasonality which tends to reduce margins because the company has a higher percentage of fixed expenses compared to variable expenses.
 In commenting on the preliminary results, Haywood D. Cochrane, Jr., Allied's president and chief executive officer, said: "We are pleased with our ability to sustain a good earnings growth rate in the fourth quarter. The fundamental growth prospects of the company remain strong. Despite this progress, several problems which occurred primarily in the month of December kept these results from being even better.
 "These problems were as follows: 1. a larger than expected amount of lost business as a result of competitive pricing pressures which contributed to revenue shortfalls in three of our operating regions and in the contract management services division; 2. an increase in bad debts and interest expense; 3. a loss in one of our management contracts, which has subsequently been renegotiated to correct the problem; 4. a delay in closing certain smaller acquisitions which did not occur as early in the quarter as was projected.
 "Competitive pricing and growth pressures remain with us as we begin the new year, but we are pleased to see our two largest regions continue to perform well against expectations in both revenues and earnings. Core revenue growth in these two regions remains strong. Addressing competitive pressures in other regions continues to be a priority for us.
 "Momentum in revenue increase and earnings increase in the first quarter of 1993 could also be impacted by the timing and size of acquisitions which we are pursuing. Despite these variables, we remain confident in our ability to participate profitably in the consolidation of our industry."
 Separately, Allied announced that it has reached an agreement in principle to acquire Sierra Nevada Laboratories, Inc., headquartered in Reno, Nev. Due diligence and negotiations leading to a definitive purchase agreement are continuing and the parties expect a closing sometime in February. Sierra Nevada Laboratories is the largest independent clinical laboratory with operations in northern Nevada and it also has a significant market presence in northern California. Its 1992 revenues were in excess of $25 million.
 Allied provides testing services to physicians, hospitals, clinics and other health care providers through a national network of ten regional laboratories, one of which serves as a reference laboratory and one of which serves as an anatomical testing laboratory. The company supports its regional laboratories through over 120 other service sites. Through its Contract Management Services Division, the company has contracted with approximately 60 hospitals and three multi-specialty clinic networks to provide a variety of management services for their on-site laboratories, including both clinical and anatomical testing as well as pathology consultation and laboratory direction.
 The company's common shares are traded in the over the counter National Market System under the NASDAQ symbol ACLB.
 -0- 1/20/93
 /CONTACT: Haywood D. Cochrane Jr., president and chief executive officer, or Gerard M. Hayden Jr., senior vice president and chief financial officer of Allied Clinical Laboratories, 615-320-2283/
 (ACLB)


CO: Allied Clinical Laboratories, Inc.; Sierra Nevada Laboratories,
 Inc. ST: Tennessee, Nevada IN: MTC SU: ERP TNM


RA-TG -- AT002 -- 6913 01/20/93 13:10 EST
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Date:Jan 20, 1993
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