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ENERGY INDUSTRIES ACQUISITION COMPLETED BY ZAPATA CORPORATION

 HOUSTON, Nov. 9 /PRNewswire/ -- Zapata Corporation (NYSE: ZOS) has completed the acquisition of Energy Industries, Inc., a major international supplier of natural gas compression equipment and services, for $90.9 million, Zapata Chairman and Chief Executive Officer R.C. Lassiter said today.
 "The natural gas compression business has considerable growth potential as this nation's reliance on natural gas as a basic energy source continues to increase," Lassiter said. "Together with the acquisitions being made by Zapata's gas gathering and processing subsidiary, Cimarron Gas Companies, Inc., the purchase of Energy Industries moves Zapata much closer to our stated goal to be a leader in the gas services industry."
 Energy Industries is one of the top five companies in the natural gas compression industry. In 1992, it generated revenues totaling $54.7 million. In addition to its Corpus Christi headquarters, Energy Industries has domestic facilities in several Texas locations, as well as Arkansas, Louisiana, New Mexico and Oklahoma.
 Zapata purchased Energy Industries and related natural gas compression operations of the Holt Companies for $75.2 million cash and 13.5 million shares of Zapata common stock. The stock was valued for purposes of this transaction at approximately $1.16 per share, the fair market value of the stock during the period prior to the signing of the definitive agreement. Zapata's shares have recently traded in the $1.25 to $1.625 range. Holt President and Chief Executive Officer Peter M. Holt will be named to Zapata's board of directors, succeeding Michael B. Morris.
 Lassiter said Zapata is continuing to seek acquisition opportunities, particularly where administrative and operational savings can be achieved through consolidation. These acquisitions will improve Zapata's financial performance and enhance the company's position in the natural gas services industry.
 The acquisition of Energy Industries and the operations of Cimarron provide Zapata the foundation to support expansion. The recent sale of 3.75 million shares of its Tidewater Inc. stock for approximately $78 million (which is expected to be received Friday, Nov. 12) positions Zapata to act quickly when an attractive acquisition is identified, Lassiter said.
 Zapata Corporation (NYSE symbol: ZOS) is an international company primarily involved in natural gas services. Zapata rents, fabricates and services natural gas compression packages, and gathers and processes natural gas and markets and trades in natural gas liquids. Zapata also produces natural gas and marine protein products.
 -0- 11/9/93
 /CONTACT: Barney White, vice president - corporate affairs, 713-940-6240, or (financial) David Skarke, vice president - corporate development, 713-940-6148, both of Zapata Corporation/


CO: Zapata Corporation; Energy Industries, Inc. ST: Texas IN: OIL SU: TNM

TW -- NY091 -- 2322 11/09/93 13:54 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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