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McM CORPORATION REPORTS FOURTH QUARTER RESULTS

 McM CORPORATION REPORTS FOURTH QUARTER RESULTS
 RALEIGH, N.C., March 17 /PRNewswire/ -- McM Corporation


(NASDAQ: MCMC) reports consolidated net income for the three months ended Dec. 31, 1991, of $2,011,000 or $.43 per share compared to a net loss of $3,682,000 or $.79 per share for the fourth quarter of 1990. Income from continuing operations for the fourth quarter of 1991 was $2,065,000 or $.44 per share compared to income of $1,268,000 or $.26 per share for the fourth quarter of 1990. Gross revenues from continuing operations for the fourth quarter of 1991 were $19,422,000 compared to $15,148,000 for the same period in 1990. Included in these revenues are realized investment gains of $2,834,000 for 1991 and $15,000 for 1990. Continuing operations include the operating results of the property and casualty subsidiaries, Occidental Fire & Casualty Company of North Carolina and Wilshire Insurance Company.
 Continuing operations for the year ending Dec. 31, 1991 show income of $1,960,000 or $.42 per share compared to income of $2,376,000 or $.51 per share in the prior year. Overall results, including the results of the discontinued operations and loss on disposal of the life and health insurance segment, showed a consolidated net loss of $9,676,000 or $2.07 per share. This compares to a net loss of $6,231,000 or $1.33 per share for the prior year.
 The sale of Occidental Life Insurance Company and Peninsular Life Insurance Company was completed on Oct. 24, 1991. The financial statements of prior periods have been reclassified to separately disclose the effects of the sale and discontinuance of the life and health insurance segment. The loss from operations of the discontinued life and health insurance segment in 1991 was $5,064,000 or $1.08 per share and $9,600,000 or $2.06 per share in the prior year. The loss on the disposal of this segment recorded in 1991 was $6,923,000 or $1.48 per share of which, $405,000 or $.08 per share was recorded in the fourth quarter.
 Overall property and casualty results declined from the prior year due to an increase in claim costs. This increase is the result of loss reserve development on prior years claims and increased claim severity. Property and casualty earned premium of approximately $53 million was essentially level with the prior year.
 McM Corporation
 Financial Highlights
 Dec. 31, Dec. 31, Percent
 1991 1990 Change
 (Thousands of dollars)
 Assets $147,869 $180,702 - 18.2 pct.
 Shareholders' Equity $24,239 $37,247 - 34.9 pct.
 Report for the Fourth Quarter and 12 Months Ended Dec. 31, 1991
 Three Months Ended 12 Months Ended
 (Thousands of dollars, Dec. 31, Dec. 31,
 except per share data) 1991 1990 1991 1990
 Property and Casualty
 Insurance Premium $14,983 $12,579 $52,975 $53,410
 Gross Investment Income 1,837 2,445 7,999 9,908
 Realized Investment Gains 2,834 15 2,942 56
 Other Income (232) 109 404 483
 TOTAL REVENUES $19,422 $15,148 $64,320 $63,857
 INCOME FROM CONTINUING
 OPERATIONS BEFORE INCOME
 TAX AND EXTRAORDINARY
 ITEM $2,416 $1,811 $2,311 $3,489
 Income Taxes 351 543 351 1,113
 INCOME FROM CONTINUING
 OPERATIONS BEFORE
 EXTRAORDINARY ITEM 2,065 1,268 1,960 2,376
 DISCONTINUED OPERATIONS
 Loss from Operations of
 Discontinued Life and
 Health Insurance Segment -- (5,943) (5,064) (9,600)
 Loss on Disposal of
 Life and Health
 Insurance Segment (405) -- (6,923) --
 INCOME (LOSS) BEFORE
 EXTRAORDINARY ITEM 1,660 (4,675) (10,027) (7,224)
 EXTRAORDINARY TAX BENEFIT
 FROM RECOGNITION OF OPERATING
 LOSS CARRYFORWARD 351 993 351 993
 NET INCOME (LOSS) $2,011 ($3,682) ($9,676) ($6,231)
 PER SHARE DATA:
 Income from Continuing
 Operations $0.44 $0.26 $0.42 $0.51
 Loss from Discontinued
 Operations (0.08) (1.27) (2.56) (2.06)
 Extraordinary Tax Benefit 0.07 0.22 0.07 0.22
 Income (Loss) Per Share $0.43 ($0.79) ($2.07) ($1.33)
 Cash Dividends Per Share
 Declared by McM $0.00 $0.00 $0.00 $0.00
 -0- 3/17/92
 /CONTACT: Stephen L. Stephano, Executive Vice President, Chief Financial Officer and Treasurer, McM Corporation, 919-833-1600/
 (MCMC) CO: McM Corporation ST: North Carolina IN: INS SU: ERN


CM -- CH006 -- 8951 03/17/92 17:21 EST
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