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ENVIRONMENTAL ELEMENTS ANNOUNCES SECOND QUARTER RESULTS

 ENVIRONMENTAL ELEMENTS ANNOUNCES SECOND QUARTER RESULTS
 BALTIMORE, Oct. 21 /PRNewswire/ -- Environmental Elements


Corporation (NYSE: EEC) today announced operating results for its second quarter ended Sept. 30, 1992.
 The company reported a loss from continuing operations of $2,036,000 (($.29) per share) for the quarter ended Sept. 30, 1992, compared to income of $1,750,000 ($.25 per share) for the second quarter last year. Sales were $17.7 million in this year's second quarter vs. $23.9 million last year. Contract bookings for the quarter were $20.7 million, compared to $14.8 million in last year's second quarter. As a result, backlog stood at $64.7 million at quarter end vs. $50.7 million a year ago and $61.7 million at the beginning of the quarter.
 For the six months ended Sept. 30, 1992, the company reported a loss from continuing operations of $3,900,000 (($.55) per share) vs. income of $3,414,000 ($.49 per share) last year. Sales for the first half of the fiscal year were $39.9 million compared to $50.4 million last year.
 F. Bradford Smith, president and chief executive officer, commented, "Operating results for the quarter were unsatisfactory. Sales were affected primarily by lower bookings in the first quarter and some project delays which were beyond our control. Gross margin levels, however, were also affected by increased costs on certain projects as well as an absence of the favorable project cost adjustments which we enjoyed in last year's second quarter.
 "Although we have been fortunate in maintaining or expanding our market shares, orders have been slow to materialize. The sustained high levels of bidding activity, combined with uneven order placements and execution demands, have resulted in unexpected increases in project costs. We believe we have identified substantially all of them, and we are taking firm steps to correct the processes that allowed certain errors to occur. There were no further adjustments to the previously established loss provision for our first flue gas conditioning system contract. We expect to reduce this loss provision, but can not presently predict the extent of the reduction.
 "The improving trend in contract bookings is encouraging, however, and we hope this will continue in the second half of our fiscal year. Both industrial and utility bidding activities are strong. Our third quarter results will continue to be weak given market conditions in recent quarters, but we hope to see a rebound beginning in our fourth quarter. The timing and magnitude of this recovery is dependent on the extent of the rebound in contact bookings."
 Environmental Elements Corporation, a leading air pollution control systems supplier for more than 45 years, designs and supplies electrostatic precipitator, fabric filter, flue gas conditioning, flue gas desulfurization, acid gas cleaning and continuous emissions monitoring systems. Environmental Elements' systems enable a broad range of customers in the power generation, pulp and paper, waste to energy, rock products, metals and petrochemical industries to operate their facilities in compliance with particulate and gaseous emissions standards.
 ENVIRONMENTAL ELEMENTS CORPORATION
 Summary Consolidated Financial Data
 (In thousands, except per-share amounts)
 Periods ended Three months Six months
 Sept. 30 1992 1991 1992 1991
 Sales $17,678 $23,886 $39,893 $50,366
 Cost of sales 15,776 18,909 37,062 40,696
 Gross Profit 1,902 4,977 2,831 9,670
 Operating expenses:
 Selling 1,610 1,333 3,074 2,504
 Gen'l and administrative 1,803 2,100 3,587 3,943
 Total 3,413 3,433 6,661 6,447
 Operating Income (Loss) (1,511) 1,544 (3,830) 3,223
 Interest income, net (160) 206 (31) 477
 Other income (expense), net (9) (29) (20) (55)
 Income (Loss) from
 Continuing Operations
 before Income Taxes (1,680) 1,721 (3,881) 3,645
 Provision (benefit)
 for income taxes 356 (29) 19 231
 Income (Loss) from
 Continuing Operations (2,036) 1,750 (3,900) 3,414
 Gain on disposal
 of discontinued
 operations, net 230 174 372 437
 Net Income (Loss) $(1,806) $1,924 $(3,528) $3,851
 Per share of common stock and common stock equivalents:
 Income (loss) from
 continuing operations $(.29) $.25 $(.55) $.49
 Income from
 discontinued operations .03 .02 .05 .06
 Net Income (Loss) $(.26) $.27 $(.50) $.55
 Average shares outstanding 7,022 7,043 7,018 7,042
 Backlog, end of period $64,700 $50,700 --- ---
 -0- 10/21/92
 /CONTACT: John S. Lalley Jr., director, Investor Relations and Corporate Communications of Environmental Elements, 410-368-7340/
 (EEC) CO: Environmental Elements Corporation ST: Maryland IN: SU: ERN


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Date:Oct 21, 1992
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