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ELCOR ACHIEVES FAVORABLE DEBT REFINANCING; FISCAL 1992 NET INCOME TO BENEFIT BY $1.9 MILLION, OR $.25 PER SHARE

ELCOR ACHIEVES FAVORABLE DEBT REFINANCING; FISCAL 1992 NET INCOME TO
 BENEFIT BY $1.9 MILLION, OR $.25 PER SHARE
 DALLAS, June 12 /PRNewswire/ -- Elcor Corporation (NYSE: ELK) announced today that it has received cash proceeds which will further increase its net income by approximately $1.9 million, or $.25 per share, in connection with the extinguishment of long-term debt in its fourth quarter and fiscal year ending June 30, 1992. Elcor President, Roy E. Campbell, said, "While Elcor continues to expect that income from continuing operations will be in line with security analysts' estimates of $.55 per share for its fiscal year 1992, the additional $.25 per share in extraordinary items should bring total extraordinary items up to about $.52 per share and net income up to about $1.07 per share for the fiscal year.
 "At the same time, our roofing products business is experiencing greater than anticipated growth in demand, and so we believe fiscal 1993 income from continuing operations should be well above security analysts' estimates of $.70 per share," he said.
 Richard J. Rosebery, Elcor chief financial officer, said, "The approximately $1.9 million, or $.25 per share, net income will boost shareholder equity by a like amount and the cash proceeds will be used to reduce debt, thereby improving our balance sheet.
 The $1.9 million gain resulted from a refinancing of private investors, who had purchased a portion of Elcor's debt at a discount from a bank acting on behalf of the FDIC. The private investors had agreed to share the discount with Elcor upon refinancing of the debt, which was concluded today. In the refinancing, a major regional bank purchased approximately $20.5 million of Elcor loans, commitments, and letter of credit obligations from the private investors."
 With respect to the outlook for both fiscal years 1992 and 1993, Campbell said, "Demand is excellent for our Elk Prestique(R) premium laminated fiberglass asphalt roofing shingles. All-time record orders for Elk Prestique shingles were booked during May 1992. Now that consumer confidence is improving, we have seen a big jump in demand for reroofing and remodeling, which in recent years has been about 80 percent of the market for asphalt shingles. We believe the very strong demand for our Elk Prestique products is the results of basic fundamentals, such as the seasonal pickup in demand, combined with lower mortgage rates stimulating both new home construction and home improvements, including reroofing and remodeling, which had slowed down during the recession.
 "In addition, the torrential rains and hail spawned by El Nino and other storms have produced a large number of leaking roofs stretching from California to Florida that need to be repaired or replaced. Contractors are telling us that reroofing demand for laminated shingles resulting from these recent weather conditions should continue at a high level for at least 18 to 24 months.
 "Lastly, the company's industrial products operations have also made substantial progress in reducing their operating loss during fiscal 1992 and are expected to contribute to income in the fiscal year beginning July 1, 1992," he concluded.
 Elcor manufactures roofing products and industrial products. Each of Elcor's principal operating subsidiaries is the leader or one of the leaders within its particular market.
 Elcor's roofing products facilities are located in Tuscaloosa, Ala.; Dallas and Ennis, Texas. Its industrial products facilities are located in Cleveland, Ohio; Dallas, Lufkin, Midland and Waco, Texas.
 For more information on Elcor Corporation, simply dial 1-800-PRO-INFO and enter the number 055.
 -0- 6/12/92
 /CONTACT: Richard J. Rosebery, CFO of Elcor, 214-851-0500/
 (ELK) CO: Elcor Corporation ST: Texas IN: CST SU: FNC


TQ -- NY061 -- 9765 06/12/92 15:03 EDT
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Date:Jun 12, 1992
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