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IMCERA DISCUSSES REVIEW OF PITMAN-MOORE OPERATIONS; REVISES THIRD QUARTER AND FULL YEAR EPS EXPECTATIONS DUE TO PITMAN-MOORE PERFORMANCE

 NORTHBROOK, Ill., March 9 /PRNewswire/ -- IMCERA Group Inc. (NYSE: IMA) announced today that management has assessed the results of the first phase of the performance improvement project at its Pitman- Moore animal health care unit. "Although extensive work remains, we now know that returning Pitman-Moore to an acceptable level of profitability will have a material adverse effect in this fiscal year," said C. Ray Holman, IMCERA president and chief executive officer. "These factors include Pitman-Moore's poor operating
results and a planned restructuring charge. We are aggressively moving ahead with our program to pinpoint and promptly correct the problems at Pitman-Moore and are absolutely committed to returning IMCERA to superior growth next year and beyond."
 Third Quarter Outlook
 Fiscal 1993 third quarter earnings per share are now expected to be several cents below the 42 cents from continuing operations reported in last year's third quarter. "In addition to the negative effects of weak sales and the delayed restart of certain plant operations," Holman said, "remedial steps under consideration for Pitman-Moore could not be implemented in time to positively influence third quarter performance."
 Holman continued, "Third quarter earnings are being further affected by our Mallinckrodt Specialty Chemicals unit whose earnings, although higher than this year's second quarter, will be below a strong third quarter of last year. We continue to expect, however, that this unit will record a gain in comparable year-to-year earnings.
 Fourth Quarter and Full Year Outlook
 "We now believe that IMCERA's fiscal 1993 earnings per share from continuing operations will be only slightly above the $1.65 reported last year," noted Holman. "This is caused by the anticipated third quarter results and our expectation that weak performance at Pitman- Moore will continue and also lag last year's fourth quarter. In December, we had indicated that earnings might improve 'plus or minus' 15 percent compared with fiscal 1992." Full fiscal year 1993 expectations include 4 cents per share of severance costs from management resignations announced earlier.
 "We expect, however, to see strong operating results for the fourth quarter and full year from both Mallinckrodt Medical, which continues to perform well above expectations, and from Mallinckrodt Specialty Chemicals," said Holman.
 Restructuring Charge Planned
 Holman said the 1993 earnings per share outlook is before a significant restructuring charge the company expects to take in the fourth quarter of this year. "We must complete additional steps in our review before we can determine the full extent of the restructuring measures and quantify the impact."
 Holman stressed, "The restructuring program will be aimed at major, discrete actions to improve and sustain future earnings prospects and profitability, the greatest part of which we believe will relate to Pitman-Moore. Components of the program will include rationalization of operations worldwide, including facilities realignments and consolidations; organizational refinement; and, the cost of consulting support."
 Additionally, Holman said IMCERA is considering the early adoption of new financial accounting standards known as FAS 106, 109 and 112 in the fourth quarter. However, he said a decision on early adoption will not be made until May or June and that no refinements of the estimated effects of the standards are available beyond those previously disclosed.
 A Fortune 250 company with fiscal 1992 net sales of more than $1.7 billion, IMCERA provides human and animal health care products and specialty chemicals through its three international, technology-based businesses -- Mallinckrodt Medical of St. Louis; Mallinckrodt Specialty Chemicals of Chesterfield, Mo.; and Pitman-Moore of Lake Forest, Ill.
 -0- 3/9/93
 /CONTACT: Dave Prichard (investor and press) of IMCERA Group, 708-205-2270/
 (IMA)


CO: IMCERA Group Inc.; Pitman-Moore ST: Illinois IN: HEA SU:

PS -- NY011 -- 4343 03/09/93 08:01 EST
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Date:Mar 9, 1993
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