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CANONIE ANNOUNCES FISCAL 1993 RESULTS

 PORTER, Ind., May 3 /PRNewswire/ -- Canonie Environmental Services Corp. (NASDAQ: CANO), announced revenues for its fiscal year ended February 28, 1993, of $71,376,000 and a net loss of $9,923,000 or $1.74 per share, compared with revenues of $65,807,000 and net income of $807,000 or $0.14 per share in the prior year.
 The net loss includes adjustments of approximately $12,600,000, or $9,987,000 after consideration of tax benefits. These adjustments are principally attributable to management's accelerated efforts to settle long outstanding contract claims to avoid prolonged, costly and uncertain litigation, the adjustment of the carrying value of a note secured by California property which contains a hazardous waste site, and severance costs associated with previously announced employment reductions and management changes.
 The net loss also includes $900,000 of losses attributable to Canonie's NRT and SoilTech affiliates. NRT has been liquidated and SoilTech's outlook is much improved as a result of a major contract award and two other contracts in final negotiation.
 For the fourth quarter, revenues were $9,475,000 with a net loss of $9,061,000 or $1.59 per share, compared to revenues of $18,079,000 with net income of $225,000 or $0.04 per share in the prior year's fourth quarter. The fourth quarter results include $10,600,000 of pre-tax adjustments.
 Richard A. Zartler, president of Canonie, stated, "These losses exceed our prior estimates principally because of the results of a recently completed appraisal of the California property, and the fact that a portion of the net operating loss, approximately $3,000,000, will have to be carried forward to future year's taxable income versus providing a benefit in fiscal year 1993.
 "We are disappointed in the magnitude of these losses, but we believe they are necessary to place Canonie on the right track and return our focus to providing high-tech solutions to our customers' environmental problems. Fortunately, these charges are principally non- cash items to our current operations. Canonie has no long-term debt."
 Regarding the outlook for fiscal year 1994, Canonie expects improved operating results. "Our SoilTech outlook is excellent," Zartler indicated, "plus our overall backlog of $65,000,000 is a record high. We also expect the improving economy and the increased environmental activism on the part of the Clinton Administration to begin to benefit Canonie's on-site remediation business toward the end of the year."
 Canonie Environmental Services Corp. provides comprehensive hazardous waste remediation services. The firm has over 14 years of experience in site investigation and characterization, strategic planning, engineering, construction and operation and maintenance. The company develops and applies practical yet innovative technology to meet clients' needs. It is one of the few firms capable of providing such a broad range of services.
 CANONIE ENVIRONMENTAL SERVICES CORP.
 CONSOLIDATED STATEMENTS OF INCOME
 (IN THOUSANDS, EXCEPT PER SHARE DATA)
 Three Months Ended Feb. 28 and 29
 1993(a) 1992
 Revenues $ 9,475 $18,079
 Cost of Revenues 11,872 13,954
 Gross Profit (Loss) (2,397) 4,125
 Selling, General and
 Administrative Expenses 7,944 3,420
 Income (Loss) from Operations (10,341) 705
 Interest Income (Expense) (111) (197)
 Provision For Estimated Losses And
 Costs of Subsidiary Sold (192) ---
 Minority Interest (77) (19)
 Income (Loss) Before Taxes On
 Income or Reduction of Prior
 Years Income Taxes (10,721) 489
 Taxes on Income --- 248
 Reduction of Income Taxes,
 Resulting From Carryback Of
 Net Operating Loss (2,234) ---
 Income (Loss) Before Profits
 (Losses) Of Unconsolidated
 Affiliates (8,487) 241
 Share in Profits (Losses) of
 Unconsolidated Affiliates (574) 14
 Net Income (Loss) $(9,061) $ 255
 Weighted Average Number of
 Common Shares Outstanding 5,701 5,701
 Earnings (Loss) Per Common Share $ (1.59) $ 0.04
 Twelve Months Ended Feb. 28 and 29
 1993(a) 1992
 Revenues $17,376 $65,807
 Cost of Revenues 63,972 50,352
 Gross Profit (Loss) 7,404 15,455
 Selling, General and
 Administrative Expenses 18,614 12,909
 Income (Loss) from Operations (11,210) 2,546
 Interest Income (Expense) (143) 503
 Provision For Estimated Losses And
 Costs of Subsidiary Sold (192) ---
 Minority Interest (64) (112)
 Income (Loss) Before Taxes On
 Income or Reduction of Prior
 Years Income Taxes (11,609) 2,937
 Taxes on Income --- 1,256
 Reduction of Income Taxes,
 Resulting From Carryback Of
 Net Operating Loss (2,587) ---
 Income (Loss) Before Profits
 (Losses) Of Unconsolidated
 Affiliates (9,022) 1,681
 Share in Profits (Losses)of
 Unconsolidated Affiliates (901) (874)
 Net Income (Loss) $(9,923) $ 807
 Weighted Average Number of
 Common Shares Outstanding 5,701 5,701
 Earnings (Loss) Per Common Share $ (1.74) $ 0.14
 NOTE (a): In the fourth quarter of 1993, the company recorded adjustments of approximately $10,600,000, arising primarily from the company's accelerated efforts to settle outstanding claims on contract jobs, the reduction of the carrying value of a trade note receivable and severance costs associated with management changes.
 During the second quarter of 1993, the company recorded adjustments relating to layoffs and cost overruns on remediation projects of approximately $2,000,000. This, in conjunction with fourth quarter adjustments, amounts to approximately $12,600,000 before taxes, $9,987,000 after tax for the entire year.
 -0- 5/3/93
 /CONTACT: William R. Howe, corporate controller and assistant treasurer, Canonie Environmental Services Corp., 219-926-8651/
 (CANO)


CO: Canonie Environmental Services Corp. ST: Indiana IN: CHM SU: ERN

AR -- CL032 -- 4033 05/03/93 17:48 EDT
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Date:May 3, 1993
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