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QUNO'S REPORTS REVENUE, BOTTOM LINE IMPROVE IN FIRST QUARTER

 ST. CATHARINES, Ontario, April 20 /PRNewswire/ -- QUNO Corporation today reported improved revenue and reduced losses for the first quarter of 1993, compared to the first period in 1992.
 QUNO's revenue of $127.3 million was up 20 per cent from the first quarter of 1992. QUNO reported a quarterly net loss of $4.2 million ($0.30 per share). This represents an improvement of $11.5 million from a net loss of $15.7 million in the first quarter 1992.
 The revenue gains were due primarily to higher newsprint prices and the beneficial impact of a weaker Canadian dollar on sales in the United States. Quarterly newsprint production costs were below 1992 levels for the company as a whole and declined nearly 8 percent at QUNO's Thorold mill. Although it recorded an operating loss for the quarter, Scierie des Outardes' improved sawmill production levels led to steady improvement in its financial results.
 These gains were somewhat offset by temporary first quarter operating difficulties at the Baie-Comeau newsprint mill, as a result of inconsistent quality in the wood chips produced in the start-up phase of the modernized sawmill operations. In 1992, QUNO integrated the woodlands operations of the Baie-Comeau paper mill and the SDO sawmill to achieve production and cost benefits. SDO supplies the Baie-Comeau mill with wood chips used in pulp production.
 Corrective action has been taken and QUNO has booked, in the first quarter, a one-time $2 million write-down in the value of part of the affected wood in inventory.
 William J. McNally, QUNO's president and chief executive officer, said "We are pleased with the substantial year-over-year improvement in operating income. The production difficulties at Baie-Comeau have been substantially resolved and the actions we are now taking will result in additional improvements in pulp strength and product quality."
 With the sawmill modernization, Scierie des Outardes' lumber quality has improved and production waste and costs have been reduced. Two projects are underway at Baie-Comeau; one to increase the recycled content of newsprint production at the Baie-Comeau paper mill to 12 percent from 5 percent, and another an equipment upgrade which will improve newsprint quality and strength.
 First quarter interest expense of $7.8 million was 36 percent lower than a year ago. Interest is expected to decline about 50 percent further in future quarters as a result of lower debt levels and lower interest rates associated with the initial public offering and refinancing. QUNO had operating cash flow of $7.0 million in the first quarter, compared to $0.1 million for last year's first quarter.
 First quarter newsprint production totalled 200,700 tons, up 4,400 tons from the same period last year. First quarter lumber production was 24.3 million board feet, compared to 16.7 million board feet for the comparable period in 1992.
 The quarterly results were QUNO's first as a public company, after 80 years of private ownership by Tribune Company, a leading provider of information and entertainment in the United States.
 QUNO Corporation is North America's seventh largest newsprint manufacturer, with fully integrated pulp and paper mills located in Thorold, Ontario and Baie-Comeau, Quebec. QUNO owns and operates Scierie des Outardes sawmill and has a 60 percent interest in and operates a hydro power generating station in Baie-Comeau. It also owns and operates QUNO Recycling Corporation, of Toronto, one of Canada's largest multi-material recycling operations. It is a leading supplier of recycled content newsprint. QUNO's common shares are listed on the Montreal Exchange and The Toronto Stock Exchange.
 QUNO CORPORATION
 Three Months Ended
 March 28 March 29
 1993 1992
 CONSOLIDATED STATEMENT OF
 OPERATIONS (UNAUDITED) (Millions of dollars)
 Operating revenues $127.3 $106.3
 Operating expenses
 Cost of goods and services 96.4 90.0
 Distribution 16.7 16.1
 Selling, general and administrative 16.1 13.5
 Operating loss (1.9) (13.3)
 Other expenses (income)
 Foreign exchange loss (gain),net (1.5) (0.6)
 Interest expense
 Long-term 7.4 11.4
 Other 0.4 0.8
 Interest income (0.2) (0.2)
 Loss (gain) on disposal
 of properties, net (0.3) 0.2
 Loss before income taxes and (7.7) (24.9)
 minority interest
 Recovery of income taxes (3.7) (9.4)
 Minority interest 0.2 0.2
 Net loss ($4.2) ($15.7)
 Net loss per common share (A) ($0.30) --
 Weighted number of outstanding
 common shares (thousands) (A) 14,175 --
 (A) QUNO shares began trading publicly Feb. 17, 1993. Shares outstanding end of first quarter - 22,047.
 Supplemental Financial Information
 Debt to capital ratio 0.29 0.75
 Non-convertible long-term debt $185.9 $451.3
 Shareholders' equity $280.8 $147.3
 Total assets $751.5 $722.2
 Capital expenditures $3.6 $5.4
 Operating cash flow $7.0 $0.1
 Production
 - Newsprint (tons) 200,700 196,300
 - Lumber (million board feet) 24.3 16.7
 -0- 4/20/93
 /CONTACT: Garry Smith, director, corporate communications of QUNO, 416-641-4378/


CO: QUNO Corporation ST: Ontario IN: PAP SU: ERN

PS -- NY089 -- 8194 04/20/93 14:39 EDT
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Date:Apr 20, 1993
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