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GZA GEOENVIRONMENTAL TECHNOLOGIES REPORTS FOURTH QUARTER AND FISCAL YEAR 1992 RESULTS

 GZA GEOENVIRONMENTAL TECHNOLOGIES REPORTS FOURTH QUARTER AND
 FISCAL YEAR 1992 RESULTS
 NEWTON UPPER FALLS, Mass., May 18 /PRNewswire/ -- GZA GeoEnvironmental Technologies, Inc. (NASDAQ-NMS: GZEA) today announced results for the year and the fourth quarter ended Feb. 29, 1992.
 For the year, net revenue was $34.8 million, up 1.5 percent over last year's $34.2 million. The net loss for the year was $3.1 million or 84 cents per share compared to net income of $1.0 million or 28 cents per share for fiscal 1991. Fourth quarter net revenues were $7.8 million, up 1.0 percent over last year's $7.8 million. The net loss for the fourth quarter was $1.6 million of 44 cents per share compared to a loss of $696,000 or 19 cents per share last year. The fourth quarter included a charge of 29 cents per share related to the write-off of goodwill associated with the acquisition by the company in January 1990 of Applied Environmental Technologies, Inc. (AET).
 The company attributed the decline in fiscal 1992 earnings to a number of factors. The company experienced reduced utilization rates largely due to the continuing recession and also incurred costs associated with the opening of four new offices in the Southwest and New Jersey. In addition, the company had a number of non-recurring costs including: (1) losses incurred on a construction project in Kittery, Maine; (2) a one-time accounting charge related to restructuring of operations and the downsizing of the company's Grover Enterprises, Inc., subsidiary; and (3) the write-off of goodwill associated with AET.
 During the fourth quarter, management of the company, as part of its ongoing overall review of operations and organizational structure, concluded that the future economic benefits to be derived from its 1990 acquisition of AET no longer supported the valuation of the related goodwill recorded as a result of the acquisition. AET's environmental training and seminar business has been integrated into the company's wholly owned subsidiary GZA GeoEnvironmental, Inc. in keeping with the company's decision to expand its in-plant services capabilities throughout its network of offices. Due to this integration, as well as a significant reduction in AET's original workforce, the company felt that to retain goodwill on its balance sheet for AET as a separate business unit was no longer appropriate and that it was prudent to write off the entire remaining amount. The company believes that its balance sheet now reflects only those assets that have future value to the business.
 Donald T. Goldberg, chairman of the board and chief executive officer, commented: "Despite the adverse business climate, we chose to continue our strategy of selectively expanding the scope of our services and geographical presence. We also chose this year to move aggressively to clean up our balance sheet so that we can begin this fiscal year unencumbered by non-producing assets. With encouraging signs developing in the economy and in our markets, we believe the efforts of this last year will enable us to move forward with renewed profitability.
 "We are encouraged by signs of improvement in our Northeast markets, reflected in increased utilization rates and some large new contracts. However, we also believe we must continue to expand geographically, not only to diversify our risk but also to be well-positioned for the increased opportunities that economic recovery will bring. We have opened four new offices in the Southwest (Phoenix, Albuquerque, El Paso and Dallas), an office in Lyndhurst, N.J., and an office in Canton, Ohio. Our joint venture in the United Kingdom, Aquaterra Environmental Consultants (a joint venture with Carl Bro, U.K.), began operations in December 1991. In March 1992, we acquired Alderink and Associates, Inc., an environmental consulting firm in Grand Rapids, Mich., which provides a variety of industrial hygiene and environmental health consultation services. We are excited about the opportunities for growth at all of our new offices.
 "In addition to expanding our network of offices and services, we have taken steps to trim overhead and reduce costs. We are positioned for the future with a leaner, flatter organization. However, our current corporate overhead structure, although leaner, can accommodate fairly significant growth with little or no additional cost. As a consequence, we believe that most of our future revenue growth after direct job costs will result in commensurate increases in operating income."
 GZA GeoEnvironmental Technologies, Inc. provides a wide spectrum of environmental consulting and remediation services and geotechnical services to private-sector companies and public agencies. The common stock of GZA GeoEnvironmental Technologies, Inc. is listed on the National Market System of NASDAQ, symbol GZEA.
 GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
 Summary Financial Data
 (In thousands, except per share data)
 Fourth Quarter Ended Year Ended
 2/29/92 2/28/91 2/29/92 2/28/91
 Net revenue $7,836 $7,758 $34,762 $34,239
 Direct salaries and
 wages 2,596 2,309 10,902 10,106
 Indirect and
 administrative expenses 6,709 6,755 25,717 23,224
 Restructuring charge 1,072 --- 2,772 ---
 Income (loss) from
 operations $(2,541) $(1,306) $(4,629) $909
 Other income and
 expenses, net 179 157 86 739
 Income (loss)
 before provision
 for income taxes $(2,362) $(1,149) $(4,543) $1,648
 Provision (credit)
 for income taxes (740) (453) (1,438) 623
 Net income (loss) $(1,622) $(696) $(3,105) $1,025
 Earnings (loss)
 per share (44 cents) (19 cents) (84 cents) 28 cents
 Weighted average
 shares outstanding 3,714 3,714 3,714 3,718
 -0- 5/18/92
 /CONTACT: Kim Whelan of GZA GeoEnvironmental Technologies, 617-969-0700, x6357/
 (GZEA) CO: GZA GeoEnvironmental Technologies, Inc. ST: Massachusetts IN: SU: ERN


TM-SH -- NE006 -- 1528 05/18/92 17:17 EDT
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