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MORRISON KNUDSEN ANNOUNCES CESSATION OF DISCUSSIONS WITH SUMITOMO OVER GREEN LINE

 MORRISON KNUDSEN ANNOUNCES CESSATION OF DISCUSSIONS
 WITH SUMITOMO OVER GREEN LINE
 LOS ANGELES, Jan. 17 /PRNewswire/ -- William J. Agee, chairman and chief executive officer of Morrison Knudsen Corp. (MK) (NYSE: MRN), today announced that, despite their best efforts, Morrison Knudsen and Sumitomo Corp. have been unable to reach an agreement to work together to build the Los Angeles County Metro Green Line cars.
 "Morrison Knudsen and Sumitomo have been meeting at the request of the Los Angeles County Transportation Commission (LACTC)," said Agee. "As we told the staff of the LACTC, a precondition of any such agreement must be that it would increase jobs in Los Angeles, provide jobs in America, and increase the participation of minority and female-owned businesses in building the Green Line cars," said Agee. "We have spent many hours in earnest and open discussions and have concluded that such a meaningful and cooperative venture just isn't there."
 The Metro Green Line is a $120-million contract for 41 high performance transit vehicles. Morrison Knudsen is the only American- owned transit car manufacturer in the United States.
 Agree further announced that the Metropolitan Transit Authority of Chicago has today awarded to Morrison Knudsen a $380-million contract to manufacture 173 new rail cars and to refurbish an additional 140 existing cars for the Chicago METRA. Morrison Knudsen is the prime contractor and Sumitomo is the subcontractor for the Chicago project.
 Morrison Knudsen is also building 48 new cars for the New York transit system and 256 cars for the Chicago Transit Authority.
 Speaking of the Los Angeles Green Line project Agee said, "We are disappointed by the outcome, but we are grateful for the support of the public and elected officials who have taken an interest in this procurement in order to increase American jobs. We fought hard for this contract in the best tradition of American competition. We gave it our all, and we'll be back to bid again. As an American company, our first priority is to be a part of the development of a first class transit system in this region and to bring jobs to Los Angeles."
 Morrison Knudsen has a proven record for quality and safety which is second to none in the transit industry; it's partner, General Electric Co., is among the premier propulsion manufacturers in the world. "We're confident that there will be another opportunity for us in Los Angeles," Agee concluded.
 In addition to manufacturing new cars, Morrison Knudsen Corp. is a leader in the remanufacturing of transit vehicles and is an international company serving the environmental, industrial processing, power and transportation markets with complete development, design/engineering, construction, operating and financial services.
 -0- 1/17/92
 /CONTACT: Jess Hawley of Morrison Knudsen Corp., 208-386-5387, or George David Kieffer, Esq., Manatt, Phelps, Phillips & Kantor, 310-312-4146, for Morrison Knudsen/
 (MRN) CO: Morrison Knudsen Corp.; Sumitomo Corp. ST: Idaho, California IN: TRN SU:


LM -- SE014 -- 1225 01/17/92 21:54 EST
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Publication:PR Newswire
Date:Jan 17, 1992
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