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MK ANNOUNCES AGREEMENT TO ACQUIRE NORTH PACIFIC COMPANIES

 MK ANNOUNCES AGREEMENT TO ACQUIRE NORTH PACIFIC COMPANIES
 BOISE, Idaho, Dec. 20 /PRNewswire/ -- Morrison Knudsen Corp. (MK) (NYSE: MRN) announced today that it has reached an agreement with McConnell Dowell Corp. of Australia to acquire all of McConnell Dowell's operations in the North Pacific. These include on-going operations in Hawaii, Guam, Micronesia and Indonesia that are managed by E.E. Black and G.W. Murphy Corporations in Hawaii, Black Construction Corp. in Guam and Micronesia and P.T. Prestress in Indonesia. These operations had combined sales of $265 million for their fiscal year ended June 30.
 "This transaction is an important step for Morrison Knudsen because it gives us a preeminent position in the North Pacific, an area where we have focussed resources to take advantage of this large and growing market," said William J. Agee, chairman and chief executive officer of MK.
 Included in this transaction is E.E. Black's 22.5 percent of the construction portion of the Oahu Transit Group's recent contract award of the $1.1 billion Honolulu mass transit project. Morrison Knudsen, the managing partner of the Oahu Transit Group, will have over 75 percent of the construction portion of the project upon completion of this acquisition. The 15.6-mile-long elevated rail transit system to serve Honolulu will be the largest public works project ever built in Hawaii.
 Morrison Knudsen will acquire these operations in a transaction that will result in the elimination of approximately $23 million of Convertible Subordinated Notes payable from McConnell Dowell to MK.
 MK will retain its 49-percent common stock ownership of McConnell Dowell Corp. of Australia, and MK will continue to play an active role with McConnell Dowell in aggressively pursuing opportunities emerging in South East Asia, Australia, New Zealand and the Middle East.
 The transaction is subject to appropriate regulatory approvals and approval by McConnell Dowell's shareholders.
 Morrison Knudsen Corp. is an international company serving the environmental, industrial processing, power and transportation markets with complete development, design/engineering, construction, operating and financial services.
 -0- 12/20/91
 /CONTACT: Jess Hawley of Morrison Knudsen Corp., 208-386-5000/
 (MRN) CO: Morrison Knudsen Corp.; McConnell Dowell ST: Idaho, Hawaii IN: TRN SU: TNM


SC -- SE010 -- 4583 12/20/91 17:39 EST
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Date:Dec 20, 1991
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