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SCOTTISH HERITABLE, INC. REPORTS FIRST QUARTER LOSS DUE TO LOW SEASONAL DEMAND

 SCOTTISH HERITABLE, INC. REPORTS FIRST QUARTER LOSS
 DUE TO LOW SEASONAL DEMAND
 FAIRFAX, Va., May 22 /PRNewswire/ --Scottish Heritable, Inc. (NASDAQ: SHER) reported a loss of $689,000, or $0.18 per share, for the period ended March 31, 1992. These results compare to a loss of $380,000, or $0.10 per share, for the first quarter of 1991.
 "Low seasonal demand typically predicates a loss in the first quarter of the year, and 1992 is no exception," said Peter C. Timms, Scottish Heritable, Inc.'s president and chief executive officer.
 According to Timms, residual investment banking and other professional charges related to the resolution of the company's indebtedness totalled $172,000 during the first quarter of 1992. Without these charges, the loss would have been $517,000 for the quarter. The difference between this figure and the loss incurred in the first quarter of 1991 is largely attributable to increased depreciation charges of $121,000, reflecting the company's recent program of plant improvements.
 "Market conditions remain difficult, and all of the company's plants have experienced price erosion as a result of intense competition in the marketplace," said Timms. "In common with all companies in the lime industry, Scottish Heritable is highly sensitive to changes in volume. Yet in spite of severe recessionary conditions, we have managed to counter industry trends by both reducing our cost base and increasing market share.
 "In the future, even relatively small gains in the company's market volumes will have a very beneficial effect on the net income line," said Timms.
 Timms pointed out the company's three calcium lime plants increased sales revenues by eight percent during the first quarter of 1992, compared to the first quarter of 1991. This increase in revenues resulted in a significant improvement in profits from these plants, largely offsetting the 20 percent decline in revenues at Corson, its aggregates/dolomitic lime plant.
 In addition, Timms reported the due diligence process for the sale of the company's Ripplemead, Va. facility is proceeding according to plan. This sale, if consummated, will have a significant positive impact on both borrowing and stockholders' equity.
 Scottish Heritable, Inc. operates lime and limestone production facilities in Arkansas, Pennsylvania, Texas and Virginia. The Scottish Heritable Trust PLC, a York, England-based industrial holding company, owns 49.99 percent of the company's stock.
 SCOTTISH HERITABLE, INC. AND SUBSIDIARIES
 Consolidated Condensed Statement of Operations
 (In Thousands, except per share amounts, unaudited)
 Periods ended THREE MONTHS
 March 31 1992 1991
 Revenues $ 8,642 100.00pct. $ 8,482 100.00pct.
 Cost of revenues:
 Labor & other
 operating expense 6,022 69.68pct. 5,869 69.19pct.
 Depreciation,
 depletion &
 amortization 1,020 11.80pct. 899 10.60pct.
 Amortization of
 costs in excess
 of net assets
 acquired 164 1.90pct. 164 1.93pct.
 7,206 83.38pct. 6,932 81.73pct.
 Gross Profit 1,436 16.62pct. 1,550 18.27pct.
 SG&A expenses 1,518 17.57pct. 1,416 16.69pct.
 Operating profit
 (loss) (82) -0.95pct. 134 1.58pct.
 Other deductions
 (income):
 Interest expense 612 7.08pct. 544 6.53pct.
 Other, net (5) -0.06pct. (40) -0.47pct.
 607 7.02pct. 514 6.06pct.
 Net Earnings (loss)
 before income taxes (689) -7.97pct. (380) -4.48pct.
 Federal & State
 income taxes -- --
 Net earnings (loss)$ (689) -7.97pct. $ (380) -4.48pct.
 Earnings (loss) per
 share of common
 stock:
 Net earnings
 (loss) $ (0.18) $ (0.10)
 Weighted avg.
 no. of com.
 shares 3,836 3,836
 -0- 5/22/92
 /CONTACT: Peter C. Timms of Scottish Heritable, Inc., 713-703-0702/
 (SHER) CO: Scottish Heritable, Inc. ST: Virginia IN: MNG SU: ERN


AH -- NY055 -- 3442 05/22/92 16:15 EDT
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Date:May 22, 1992
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