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MAXXAM REPORTS FIRST QUARTER RESULTS

 HOUSTON, April 28 /PRNewswire/ -- MAXXAM Inc. (AMEX: MXM) today reported a loss of $25.9 million, or $2.74 per common share, for the first quarter of 1993, exclusive of previously disclosed, one-time, non-cash, after-tax charges for the required adoption of new accounting standards and for an extraordinary loss associated with the early retirement of debt at subsidiary companies. The first-quarter 1993 results compare to net income of $0.9 million, or $0.10 per common share, for the first quarter of 1992.
 Including the $417.7 million ($44.14 per share) after-tax charge for the cumulative (catch-up) effect of the accounting changes for Statements of Financial Accounting Standards No. 106, No. 109 and No. 112, and the $44.1 million ($4.66 per share) after-tax extraordinary loss associated with the debt retirement, MAXXAM's first-quarter net loss was $487.7 million, or $51.54 per common share.
 Sales for the first quarter of 1993 were $513.7 million, compared to $529.5 million in the same period of 1992.
 The new accounting standards, issued by the Financial Accounting Standards Board, were adopted by MAXXAM effective Jan. 1, 1993. The new standards require a change in the accounting for postretirement benefits other than pensions, postemployment benefits, and corporate income taxes. MAXXAM's charge for the adoption of these new standards includes the charge reported separately today by MAXXAM's subsidiary, Kaiser Aluminum Corp. (NYSE: KLU).
 The extraordinary loss on the early retirement of debt results from first-quarter refinancing that lowered interest rates and extended maturities at MAXXAM's Kaiser and Pacific Lumber subsidiaries.
 "Excluding the effect of the accounting change and the extraordinary loss, MAXXAM reported a quarterly loss largely as a result of the extremely depressed level of aluminum market prices, some of which reached historic lows in real terms during the first quarter," said Charles E. Hurwitz, chairman of the board and chief executive officer. "On the plus side, our aluminum facilities continued to operate efficiently, and our forest products and real estate businesses reported improved results."
 MAXXAM operates in three industries: aluminum (through Kaiser Aluminum Corp., an 87.2 percent owned, fully integrated aluminum producer); forest products (primarily through The Pacific Lumber Co., a wholly owned subsidiary); and real estate management and development (primarily through MAXXAM Property Co. and various wholly owned subsidiaries).
 Aluminum Operations
 The company's aluminum operations reported an operating loss of $8.2 million for the first quarter of 1993 -- its first operating loss in six years -- compared to operating income of $29.9 million for the first quarter of 1992. Sales were $442.6 million in the first quarter of 1993, compared to $463.7 million in the same period of a year ago.
 The operating loss was attributable to the impact of a continued decline in already- weak market prices for aluminum in the first quarter. Also contributing to the operating loss was the reduced production and increased cost at two company smelters in Washington resulting from the Bonneville Power Administration's temporary curtailment of electrical power to those and other large industrial facilities.
 (NOTE: A separate press release, providing greater detail on Kaiser Aluminum Corp.'s results, also is being released today.)
 Forest Products Operations
 Operating income for the company's forest products operations increased to $16.7 million for the first quarter of 1993, compared to $14.0 million for the same period of 1992. Sales by forest products operations amounted to $52.7 million, compared to $51.5 million in the same period of 1992.
 Compared to first quarter 1992 results, the increase in operating income was due primarily to markedly higher prices for redwood and Douglas fir lumber. Prices were above year-ago levels because of the declining commercial availability of publicly owned timber in the Western United States in combination with steady demand for most wood products. Partially offsetting the impact of higher prices in the first quarter of 1993 was a decline in lumber shipments attributable to weather-related transportation difficulties.
 Real Estate Operations
 The company's real estate operations reported a first-quarter operating loss of $6.6 million, compared to an operating loss of $1.8 million for the same period of 1992. The results for the first quarter of 1993 include a $5.9 million writedown of certain real estate holdings to their net estimated realizable value. Revenue for MAXXAM's real estate operations increased to $18.4 million, compared to $14.3 million for the first quarter of 1992.
 Excluding the writedown of certain real estate holdings, results improved largely as a result of cost reductions and the strong performance of most of the company's multi-family residential communities in Texas, where a relative lack of apartment construction over the past several years has contributed to increased demand.
 Corporate
 At the corporate level, certain costs and interest expenses that are not allocated to the company's business segments resulted in a loss before income taxes and minority interests of $8.3 million for the first quarter of 1993, compared to a loss of $5.1 million for the same period of 1992.
 MAXXAM also said that, from time to time, it may purchase its own common stock on national securities exchanges or in privately negotiated transactions in accordance with applicable laws and regulations up to a maximum of 500,000 shares.
 MAXXAM INC.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
 (In millions of dollars, except share amounts)
 Three Months Ended
 March 31,
 1993 1992
 Sales $ 513.7 $ 529.5
 Costs and expenses 515.5 493.0
 Operating income (loss) (1.8) 36.5
 Other income (expense):
 Investment, interest and other
 income 9.5 14.8
 Interest expense (49.3) (50.2)
 Income (loss) before income taxes,
 minority interests, extraordinary
 item and cumulative effect of
 changes in accounting principles (41.6) 1.1
 Credit for income taxes 14.1 1.1
 Minority interests 1.6 (1.3)
 Income (loss) before extraordinary
 item and cumulative effect of changes
 in accounting principles (25.9) 0.9
 Extraordinary item:
 Loss on early extinguishment of debt,
 net of related benefits for
 minority interests of $2.8 and
 income taxes of $24.2 (44.1) ---
 Cumulative effect of changes in accounting principles:
 Postretirement and postemployment benefits,
 net of related benefits for minority
 interests of $64.6 and income
 taxes of $240.2 (444.3) ---
 Accounting for income taxes 26.6 ---
 Net income (loss) $(487.7) $ 0.9
 Net income (loss) per common and
 common equivalent share:
 Income (loss) before extraordinary
 item and cumulative effect of changes
 in accounting principles $ (2.74) $ 0.10
 Extraordinary item (4.66) ---
 Cumulative effect of changes in
 accounting principles (44.14) ---
 Net income (loss) $(51.54) $ 0.10
 Weighted average common and common
 equivalent shares outstanding
 (in thousands) 9,463 9,435
 -0- 4/28/93
 /CONTACT: Scott Lamb of MAXXAM, 713-267-3826, or home, 713-367-6706/
 (MXM KLU)


CO: MAXXAM Inc. ST: Texas IN: MNG PAP SU: ERN

TM -- SF009 -- 2364 04/28/93 18:57 EDT
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