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NEW VALLEY CORPORATION REPORTS SECOND-QUARTER AND SIX-MONTHS RESULTS

 UPPER SADDLE RIVER, N.J., Aug. 5 /PRNewswire/ -- New Valley Corporation reported today that it recorded net income of $8.9 million for the three months ended June 30, 1993. This compares with a net loss of $6.8 million in the second quarter of 1992. After giving effect to $16.8 million of undeclared dividends on preferred shares, the 1993 second-quarter net loss applicable to common shares was $7.9 million. This was equal to a loss of four cents per common share, as compared with a loss of 12 cents per share last year.
 In as much as New Valley is now operating under the protection of Chapter 11 of the U.S. Bankruptcy Code the corporation no longer is accruing interest on its defaulted debt. This change, which became effective Jan. 1, 1993, is the principal reason for the year-to-year improvement in the second-quarter results.
 For the first six months of 1993, the corporation had net income of $13.7 million, which compares with a net loss of $10.8 million in the first half of 1992. After giving effect to $32.9 million of undeclared preferred dividends, the 1993 six-months net loss applicable to common shares was $19.2 million. This was equal to a loss of 10 cents per common share, versus a loss of 21 cents per share last year.
 Total revenues were $119 million for the second quarter of 1993 and $230 million for the first six months. This compares with 1992 revenue levels of $114 million and $220 million, respectively.
 New Valley Corporation conducts its principal operations through its wholly owned subsidiary, Western Union Financial Services, Inc. (FSI), which provides a variety of financial and messaging services. Its principal service is Western Union Money Transfer, through which funds can be transferred rapidly to any location within the United States and to many locations throughout the world. Other financial services offered by FSI include collection services, payment services, a secured credit card and a telephone debit card. New Valley also provides Western Union Mailgram (R) and other messaging services to high-volume commercial users through its Western Union Priority Services unit.
 NEW VALLEY CORPORATION
 Consolidated Statement Of Operations
 (Unaudited, in thousands except per share amounts)
 Three Months Ended June 30, 1992 1993
 Total revenues $114,190 $119,023
 Cost and Expenses:
 Cost of services 66,130 69,880
 Marketing, general and administrative 28,927 30,428
 Retiree benefits and pension cost 6,405 5,562
 Depreciation 2,847 3,120
 Property and miscellaneous taxes 571 420
 Interest expense 15,348 922
 Restructuring credits (3,815) (1,175)
 Other (income) expense, net 831 (274)
 Total costs and expenses 117,244 108,883
 Income (loss) before state inc. taxes and
 financial restructuring costs (3,054) 10,140
 Provision for state income taxes (388) (200)
 Financial restructuring costs (3,338) (1,080)
 Net income (loss) (6,780) 8,860
 Dividends on pref. shares - undeclared (14,769) (16,806)
 Net loss applicable to common shares $(21,549) $ (7,946)
 Net loss per common share $ (.12) $ (.04)
 Weighted average number of
 common shares (millions) 185.5 188.1
 NEW VALLEY CORPORATION
 Consolidated Statement Of Operations
 (Unaudited, in thousands except per share amounts)
 Six Months Ended June 30, 1992 1993
 Total revenues $220,193 $230,430
 Cost and Expenses:
 Cost of services 128,349 135,446
 Marketing, general and administrative 55,437 62,050
 Retiree benefits and pension cost 13,387 11,120
 Depreciation 5,965 5,941
 Property and miscellaneous taxes 1,205 930
 Interest expense 30,484 1,840
 Restructuring credits (9,316) (2,117)
 Other (income) expense, net (585) (2,475)
 Total costs and expenses 224,926 212,735
 Income (loss) before state income taxes and
 financial restructuring costs (4,733) 17,695
 Provision for state income taxes (731) (400)
 Financial restructuring costs (5,300) (3,616)
 Net income (loss) (10,764) 13,679
 Dividends on preferred shares - undeclared(28,976) (32,907)
 Net loss applicable to common shares $(39,740) $(19,228)
 Net loss per common share $ (.21) $ (.10)
 Weighted average number of
 common shares (millions) 185.3 187.3
 -0- 8/5/93
 /CONTACT: Warren Bechtel of New Valley Corporation, 201-818-5790 or 212-868-8888/


CO: New Valley Corporation; Western Union Corporation ST: New Jersey IN: SU: ERN

MP -- NY048 -- 9809 08/05/93 10:55 EDT
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Date:Aug 5, 1993
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