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REXENE CORPORATION ANNOUNCES SECOND QUARTER 1992 RESULTS

 REXENE CORPORATION ANNOUNCES SECOND QUARTER 1992 RESULTS
 DALLAS, July 30 /PRNewswire/ -- Rexene Corporation (NYSE: RXN) today


reported results for the second quarter ended June 30, 1992. Sales for the second quarter of 1992 were $102.8 million compared with $112.4 million for the second quarter of 1991. Operating income for the second quarter of 1992 was $6.6 million compared with operating income of $5.2 million for the second quarter of 1991. Net loss totaled $3.3 million, or $0.10 per share, or the second quarter of 1992 compared with a net loss of $10.4 million, or $0.33 per share, for the second quarter of 1991.
 Rexene's operating income for the second quarter increased principally due to lower general and administrative expenses, partially offset by lower margins in the styrene business. General and administrative expenses in the second quarter decreased $3.0 million or 27 percent from the second quarter of 1991, primarily due to cost containment efforts. Sales for the second quarter decreased principally due to lower styrene volumes. Net loss for the second quarter reflects the accrual of $7.6 million ($5.0 million net of income tax benefits) relating to a class action lawsuit against the company arising out of amendments in 1987 and 1988 to the company's stock bonus plan (the "Izzarelli lawsuit"). As previously reported, on July 13, 1992 a verdict in the amount of approximately $6.8 million (plus attorneys' fees) was rendered against the company in a federal district court in the Western District of Texas. The company believes the judgment was erroneous. Accordingly, it expects to appeal the decision to the Fifth Circuit Court of Appeals. If the appeal is unsuccessful, the company intends to pursue claims for recovery of any loss against its insurance carrier and an escrow fund established in connection with the company's 1988 merger.
 In addition, net loss for the second quarter of 1992 was favorably impacted because, under the company's amended plan of reorganization, interest does not begin to accrue on the company's indebtedness until July 1, 1992. Further, net loss for the second quarter was reduced by the receipt of business interruption insurance proceeds of approximately $1 million (net of tax) related to a plant outage that occurred in May 1991.
 Andrew J. Smith, chief executive officer, said, "The slow recovery in the general economy and the chemical industry continues to affect our business. However, we are encouraged by recent price increases in virtually all of our product lines which contributed to an increase in gross profit from nine percent in the first quarter to 16 percent in the second quarter. While these price increases have been partially offset by feedstock price increases, the overall demand and pricing trend continues to be positive.
 "Most encouraging to the company is the overwhelming vote of our noteholders and stockholders to approve the company's Plan of Reorganization and the Bankruptcy Court's confirmation of the Plan in early July. We expect to consummate the plan and emerge from Chapter 11 in the third quarter."
 Sales for the six months ended June 30, 1992 were $206.5 million compared with $243.2 million for the same period in 1991. Operating income for the six months of 1992 was $5.8 million compared with $11.4 million for the same period in 1991. Net loss totaled $3.5 million, or $0.11 per share, for the six months ended June 30, 1992 compared with a net loss of $21.7 million, or $0.69 per share, for the same period in 1991.
 Sales and operating income for the first six months of 1992 decreased compared to the same period in 1991 primarily due to lower volumes and selling prices in the company's polyethylene, polypropylene and styrene businesses. General and administrative expenses decreased $5.9 million, or 26 percent, during the first half of 1992 compared with the same period in 1991. Net loss was adversely affected by the accrual for the Izzarelli lawsuit discussed above. In addition, net loss was favorably affected because, under the amended Plan, interest did not accrue during the first six months of 1992, and because of the reversal, during the first quarter, of $6.8 million of post petition interest which was accrued at Dec. 31, 1991. The accrual for the Izzarelli lawsuit and the reversal of interest accrued in 1991 is included in other, net.
 Rexene Corporation, through its principal operating subsidiary, Rexene Products Company, manufactures thermoplastic resins and petrochemical products including polyethylene and polypropylene resins and plastic film. Rexene, headquartered in Dallas, has manufacturing facilities in Texas, Wisconsin, Georgia, Delaware and Utah.
 REXENE CORPORATION AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in Thousands, Except Per Share Amounts)
 Quarter Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Net sales $102,763 $112,379 $206,466 $243,234
 Operating income 6,625 5,179 5,777 11,443
 Interest expense (6) (16,323) (308) (32,530)
 Other, net (6,511) 510 157 836
 Reorganization costs
 (1992)/debt
 restructuring costs
 (1991) (4,167) (3,959) (7,278) (7,391)
 Net loss $ 3,258 $ 10,390 $ 3,495 $ 21,674
 Loss per share $ 0.10 $ 0.33 $ 0.11 $ 0.69
 -0- 7/30/92
 /CONTACT: Neil J. Devroy of Rexene, 214-450-9101/
 (RXN) CO: Rexene Corporation ST: Texas IN: OIL SU: ERN


KD -- NY071 -- 5124 07/30/92 13:09 EDT
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