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NORTH STAR UNIVERSAL ANNOUNCES FOURTH QUARTER AND YEAR-END 1992 RESULTS

 MINNEAPOLIS, Feb. 25 /PRNewswire/ -- North Star Universal, Inc. (NASDAQ: NSRU) today announced results for the fourth quarter and year ended Dec. 31, 1992.
 For the quarter, the company earned $207,000, or 2 cents per share, compared to $77,000, or 1 cent per share, in the previous year. Consolidated revenues increased 28 percent to $24.5 million from $19.1 million for the comparable period in 1991. Fourth quarter results include charges of $490,000, or 5 cents per share, related to inventory writedowns in the computer businesses and an income tax benefit adjustment of $570,000, or 6 cents per share.
 For the year, the company recorded a net loss of $1,637,000, or 17 cents per share, compared to net income of $10,301,000, or $1.01 per share for 1991. Pro forma net income for 1991 was 14 cents per share, excluding the pretax gain of $8.6 million, or 87 cents per share, from the sales of Michael Foods stock. Consolidated revenues for 1992 increased 21 percent of $86.4 million from $71.6 million in the previous year.
 President and CEO Jeffrey J. Michael remarked, "Our computer businesses generated higher revenues and improved operating profits for both the fourth quarter and for the year despite the one-time charges. Margins were negatively impacted, however, by increased competition and changes in revenue mix. In addition, our computer businesses continue to make investments in the development and introduction of new products and services."
 Michael went on to say, "CorVel Corporation demonstrated consistently strong performance throughout 1992 as evidenced by its seventh consecutive quarter of record earnings. However, our results were adversely impacted by reduced equity in earnings of Michael Foods whose earnings were down 68 percent for the fourth quarter and 80 percent for year-end 1992 due to pricing pressures in several of its product lines. While our overall results for 1992 were disappointing, we are encouraged by our continued revenue expansion and continue to believe that our strategies can produce the long-term results demanded by our shareholders."
 North Star Universal, Inc. owns and supervises businesses providing voice and data communication networking products, systems and services and mainframe and technical services to owners, users and lessors of mainframe computers and peripherals. As a parent company, North Star provides resources for its businesses' development and growth. As of Dec. 31, 1992, North Star Universal also owned a 38 percent interest in Michael Foods (NASDAQ: MIKL) and a 43 percent interest in CorVel Corporation (NASDAQ: CRVL).
 NORTH STAR UNIVERSAL, INC.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 (In thousands, except per share amounts)
 (Unaudited)
 Three Months Ended 12 Months Ended
 12/31/92 12/31/91 12/31/92 12/31/91
 Revenues $24,527 $19,114 $86,363 $71,575
 Operating and product costs 19,465 15,006 64,798 52,332
 Gross profit 5,062 4,108 21,565 19,243
 Selling, general and
 administrative expenses 5,363 4,857 22,150 20,599
 Operating loss (301) (749) (585) (1,356)
 Interest expense, net (956) (1,051) (4,237) (4,442)
 Investment income -- -- -- 8,564
 Income (loss) from continuing
 operations before income taxes
 and equity in earnings of
 unconsolidated subsidiaries (1,257) (1,800) (4,822) 2,766
 Income tax provision (benefit) (864) (700) (1,130) 810
 Income (loss) from continuing
 operations before equity in
 earnings of unconsolidated
 subsidiaries (393) (1,100) (3,692) 1,956
 Equity in earnings of
 unconsolidated subsidiaries 600 1,352 2,055 8,943
 Income (loss) from continuing
 operations 207 252 (1,637) 10,899
 Discontinued operations -- (175) -- (598)
 Net income (loss) $207 $77 $(1,637) $10,301
 Earnings per share:
 Continuing operations $.02 $.03 $(.17) $1.07
 Discontinued operations -- (.02) -- (.06)
 Net income (loss) per share $.02 $.01 $(.17) $1.01
 Weighted average shares
 outstanding 9,861,200 9,882,900 9,859,300 9,888,100
 -0- 2/25/93
 /CONTACT: Peter Flynn of North Star Universal, 612-546-7500; or John Mackay of Padilla Speer Beardsley, 612-871-8877, for North Star Universal/
 (NSRU MIKL CRVL)


CO: North Star Universal, Inc. ST: Minnesota IN: CPR SU: ERN

KH -- MN012 -- 0539 02/25/93 16:10 EST
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Date:Feb 25, 1993
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