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CRSS ANNOUNCES THIRD QUARTER RESULTS

 CRSS ANNOUNCES THIRD QUARTER RESULTS
 HOUSTON, April 28 /PRNewswire/ -- CRSS Inc. (NYSE: CRX) today


announced consolidated operating results for the third quarter of fiscal year 1992.
 Earnings from continuing operations for the third quarter ended March 31, 1992, were $0.4 million, or $0.03 per share, on $62.3 million operating revenues, vs. earnings from continuing operations of $1.7 million, or $0.13 per share, on $72.6 million operating revenues for the corresponding quarter of the prior fiscal year.
 The third quarter fiscal 1992 amounts include earnings of $1.6 million, or $0.12 per share, related to an increase in the profitability of a major program management project. The third quarter fiscal 1991 amounts include earnings from CRSS Capital, Inc., the power and cogeneration subsidiary, related to the March 1991 financial closing of the Naheola Cogeneration Facility.
 Earnings from continuing operations for the nine months ended March 31, 1992, were $2.5 million, $0.19 per share, on $184.8 million operating revenues, vs. earnings from continuing operations of $6.5 million, or $0.47 per share, on $208.9 million operating revenues for the corresponding period of the prior fiscal year.
 In addition to third quarter items noted above, the year-to-date fiscal 1992 amounts included a $0.7 million, or $0.05 per share, gain recognized by CRSS Capital in connection with the first quarter sale of its interest in a developmental cogeneration project. The year-to-date fiscal 1991 earnings include $1.3 million, or $0.10 per share, in stock appreciation rights income, incurred primarily in the first quarter of fiscal year 1991.
 Operating revenue backlog at March 31, 1992, was $152.7 million vs. $166.6 million at Dec. 31, 1991, and $203.8 million at March 31, 1991.
 The decreases vs. prior year in earnings, earnings per share, operating revenues and operating revenue backlog are attributable primarily to continued delays experienced by the design and construction services subsidiary, CRSS Services, Inc., in clients' timing of capital spending decisions and the significant pressure on operating margins, primarily as a consequence of the economic recession.
 The decreases in the earnings of CRSS Services have been partially offset by the increased equity earnings in affiliates which is primarily attributable to the growing contribution of the equity projects within CRSS Capital to the consolidated financial results of the company.
 Commenting on the third quarter results, Richard Daerr, president and chief operating officer, stated, "Based upon the current level of sales prospects, we believe operating revenue backlog has bottomed out at the current level of $153 million and hope to see growth over the next few quarters. Increases in the level of future earnings from our design and construction services group will lag the increases in operating revenue backlog by approximately two quarters. We continue to review and implement appropriate changes in the operational structure of the company in light of the current economic environment in order to realize cost savings."
 Operating revenue new orders totalled $38.4 million during the third quarter of fiscal 1992 and $109.9 million for the nine months ended March 31, 1992. Additionally, operating revenue associated with projects awarded but not contracted at March 31, 1992, totalled $91 million, for which limited authorization to proceed on two projects totalling $24 million has been received.
 Additionally, Daerr commented, "Although our short-term results continue to be affected by the current economic environment, we remain optimistic about the significant growth opportunities for CRSS Services, CRSS Capital and NaTec Resources, Inc., the acid rain/pollution control affiliate."
 Gross revenues from continuing operations for the third quarter of fiscal 1992 were $124.2 million vs. $125.8 million for the corresponding quarter of the prior fiscal year. Gross revenues from continuing operations for the nine months ended March 31, 1992, were $345.8 million vs. $346.8 million for the corresponding period of the prior fiscal year.
 Gross revenue backlog at March 31, 1992, was $453.6 million, vs. $527.2 million at Dec. 31, 1991, and $462 million at March 31, 1991.
 In February 1992, CRS Sirrine Engineers, Inc., a subsidiary of CRSS Services, was awarded the design engineering contract by Bowater Incorporated for a $60 million recycle fiber plant to be built adjacent to Bowater's Great Northern Paper newsprint mill in East Millinocket, Maine. The plant will supply 300 tons-per-day of recycled fiber from old newspapers, magazines and telephone books that will be made into newsprint and directory paper at the mill.
 In March 1992, CRSS Equity Projects, Inc., a subsidiary of CRSS Inc., announced the finalization of negotiations with Cofiroute Corporation, the California affiliate of Compagnie Financiere et Industrielle des Autoroutes, for Cofiroute to join CRSS Equity Projects, Inc. as a strategic partner in the California Private Transportation Company L.P. ("CPTC"), a California limited partnership. Under a franchise awarded by the California Department of Transportation, CPTC has the exclusive rights to study, finance, design, construct and operate a $100 million, 10-mile private toll road along State Route 91 in Orange County. Cofiroute brings to the partnership over 20 years of construction and operations experience gained from the private development and operation of over 450 miles of toll roads in France.
 CRSS, through its subsidiaries, is one of the largest and most diversified design and construction services companies in the nation today. CRSS is also involved in the independent power and cogeneration industry and has expanded through its controlling interest in NaTec Resources, Inc. (NASDAQ: NATC) into the acid rain/pollution control market.
 CRSS INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Three months Nine months
 March 31 1992 1991 1992 1991
 Gross revenues $124,191 $125,782 $345,845 $346,801
 Subcontract and
 procurement costs 61,924 53,165 161,018 137,894
 Operating revenues 62,267 72,617 184,827 208,907
 Costs and expenses:
 Direct 31,667 34,889 94,912 102,811
 Operating 28,682 32,173 83,911 90,602
 Total 60,349 67,062 178,823 193,413
 Operating income from
 continuing operations 1,918 5,555 6,004 15,494
 Equity income (loss)
 in affiliates 1,304 (464) 3,866 (110)
 Interest expense (2,251) (2,663) (6,702) (7,424)
 Non-operating income 801 1,098 2,724 4,496
 Earnings from continuing
 opers. bef. income tax 1,772 3,526 5,892 12,456
 Income tax 1,340 1,809 3,358 5,924
 Earnings from cont. opers. 432 1,717 2,534 6,532
 Earnings per common share
 from cont. opers.(A) $0.03 $0.13 $0.19 $0.47
 Earnings from discontinued
 operations -- 393 -- 808
 Earnings per common share from
 discontinued operations(A) -- 0.03 -- 0.06
 Net earnings 432 2,110 2,534 7,340
 Net earnings per
 common share(A) $0.03 $0.16 $0.19 $0.53
 Weighted average shares
 outstanding 13,339 13,531 13,403 13,967
 Gross revenue backlog -- -- 453,596 462,015
 Operating revenue backlog -- -- 152,730 203,843
 (A) -- Fully diluted.
 -0- 4/28/92
 /CONTACT: Steve Pierce of CRSS, 713-552-2158/
 (CRX) CO: CRSS Inc. ST: Texas IN: SU: ERN


CK-OS -- NY037 -- 3715 04/28/92 11:20 EDT
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