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NORTH STAR UNIVERSAL, INC. ANNOUNCES SECOND-QUARTER AND SIX-MONTH RESULTS

 NORTH STAR UNIVERSAL, INC. ANNOUNCES
 SECOND-QUARTER AND SIX-MONTH RESULTS
 MINNEAPOLIS, July 29 /PRNewswire/ -- North Star Universal, Inc. (NASDAQ: NSRU) today announced results for the second quarter and six months ended June 30, 1992. For the quarter, consolidated revenues increased 21 percent to $20.3 million from $16.8 million in 1991. The Company recorded a net loss of $990,000, or 10 cents per share, compared to net income of $932,000, or 8 cents per share, for the same quarter in the previous year. The decline in net earnings reflects a $2,064,000, or 21 cents per share, reduction in contributions from unconsolidated subsidiaries, primarily Michael Foods, Inc. (NASDAQ: MIKL).
 For the six-month period, consolidated revenues were $39.3 million compared to $33.9 million for the prior-year period. North Star recorded a net loss of $1,709,000, or 17 cents per share, compared to net income of $9,477,000, or 94 cents per share, in the first half of the previous year. Results for 1991 included a gain of $8,564,000, or 87 cents per share, from the January 1991 sale of Michael Foods stock. Six-month results include a $4,371,000, or 44 cents per share, reduction in contributions from unconsolidated subsidiaries, primarily Michael Foods.
 In commenting on the results, president and chief executive officer, Jeffrey J. Michael stated, "Our earnings continued to be hurt by reduced equity contributions from Michael Foods. Its net earnings were down 88 percent to $629,000 in the second quarter and down 82 percent to $1,975,000 for the year-to-date period. We reflect our 38 percent ownership position in Michael Foods by including our share of their earnings in our statement of operations. Michael Foods said in their second-quarter earnings release that very poor pricing conditions with their commodity-sensitive products, particularly shell eggs and frozen french fries, caused a significant decline in margins. This was further impacted by extremely competitive conditions for cheese products sold by Michael Foods' refrigerated distribution division."
 FORTIS, our other equity holding, continued to perform well. Lastly, operating profits of our computer business were down slightly in the quarter, despite a 21 percent increase in revenues. The mature product cycle for certain IBM mainframe computers adversely impacted margins in both the resale and technical service areas at C.E. Services.
 North Star Universal, Inc. owns and supervises businesses providing voice and data communications networking products, systems and services, and maintenance and technical services to owners, users and lessors of mainframe and other types of computers. As a parent company, North Star provides resources for its businesses' development and growth. As of June 30, 1992, North Star also owned a 38 percent interest in Michael Foods (NASDAQ: MIKL), and a 46 percent interest in FORTIS Corporation (NASDAQ: FORT). In mid-July, FORTIS changed its name to CorVel Corporation.
 NORTH STAR UNIVERSAL INC.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 (In thousands, except per share amounts)
 Quarter Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenues $20,319 $16,815 $39,320 $33,943
 Operating and product costs 15,225 11,926 28,619 23,783
 Gross profit 5,094 4,889 10,701 10,160
 Selling, general and
 administrative expenses 5,316 4,989 11,096 10,532
 Operating loss (222) (100) (395) (372)
 Interest expense (1,083) (1,189) (2,193) (2,406)
 Investment income -- -- -- 8,564
 Income (loss) from continuing
 operations before income
 taxes and equity in
 earnings of unconsolidated
 subsidiaries (1,305) (1,289) (2,588) 5,786
 Income tax provision 68 100 134 1,450
 Income (loss) from continuing
 operations before equity
 in earnings of unconsolidated
 subsidiaries (1,373) (1,389) (2,722) 4,336
 Equity in earnings of
 unconsolidated subsidiaries 383 2,447 1,013 5,384
 Income (loss) from
 continuing operations (990) 1,058 (1,709) 9,720
 Income (loss) from
 discontinued operations -- (126) -- (243)
 Net income (loss) $(990) $932 $(1,709) $9,477
 Earnings per share:
 Continuing operations ($0.10) $0.09 ($0.17) $0.96
 Discontinued operations -- (0.01) -- (0.02)
 Net income (loss) ($0.10) $0.08 ($0.17) $0.94
 Weighted average shares
 outstanding 9,852,000 9,901,000 9,878,000 9,881,000
 -0- 7/29/92
 /CONTACT: Peter Flynn of North Star Universal, 612-546-7500; or John Mackay of Padilla Speer Beardsley, 612-871-8877, for North Star/
 (NSRU MIKL FORT) CO: North Star Universal, Inc.; Michael Foods, Inc.; FORTIS Corporation ST: Minnesota IN: CPR FOD SU: ERN


DS -- MN003 -- 4451 07/29/92 09:20 EDT
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Date:Jul 29, 1992
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