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RRT ANNOUNCES ANTICIPATED SECOND QUARTER LOSS

 RRT ANNOUNCES ANTICIPATED SECOND QUARTER LOSS
 VESTAL, N.Y., July 9 /PRNewswire/ -- Resource Recycling


Technologies, Inc. (AMEX: RRT), today reported that it expected a significant loss for its second quarter, as well as losses for the remainder of 1992 as a result of the continued deterioration in recycled commodity prices, lower than expected volume in its plastics resin division, higher than expected operating costs in some of its facilities and anticipated start-up losses in several facilities. Earnings, however, remain strong in the company's design and construction division.
 The company also stated that it has begun discussions with its lead bank on the renewal of its line of credit which is currently unsecured. As a result of significant capital outlays for expansion, increases in account and contract receivables and the slowness of collecting certain contract and loan receivables, the company is currently at its limit on its line of credit. However, the company believes it has sufficient resources to cover its short term requirements.
 The company is addressing its difficulties by implementing a plan to significantly reduce general and administrative costs, consolidate its plastics facilities into one location in Trenton, N.J., vigorously reduce plant operating costs, accelerate full volume processing capability in its new glass and plastics operations, continue to expand its downstream plastic and glass processing capability and increase its design/build backlog.
 Commenting on the developments, Lawrence J. Schorr, president of RRT, said: "The recession continues to stifle RRT's profitability. RRT must focus on reducing the cost of operations of its facilities, as well as enhancing its long term revenue prospects, of which we remain convinced."
 RRT has previously announced the termination of the merger agreement with JWP Inc. However, discussions are continuing between the two companies.
 RRT is a vertically integrated organization dedicated to the advancement of recycling programs and technologies, and the development of new markets for secondary materials. For the year ended Dec. 31, 1991, RRT's revenues were $46,299,000.
 -0- 7/9/92
 /CONTACT: Lawrence J. Schorr, president of RRT, 607-798-7137/
 (RRT) CO: Resource Recycling Technologies, Inc. ST: New York IN: SU: ERP


GK-KW -- NY073 -- 8024 07/09/92 16:58 EDT
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Publication:PR Newswire
Date:Jul 9, 1992
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