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THE GNI GROUP REPORTS FIRST QUARTER FINANCIAL RESULTS

 HOUSTON, Oct. 19 /PRNewswire/ -- The GNI Group, Inc. (NASDAQ: GNUC) reported a net loss of $63,346 or $.01 per share on revenues of $5,259,540 for the first quarter this year compared to net income of $566,156 or $.11 per share on revenues of $6,068,256 for the first quarter last year.
 The loss of revenues and the repair costs related to the unanticipated shutdown of the company's deepwell No. 1 due to an injection tubing failure contributed to the weak results in the first quarter. At the time of the failure, deepwell No. 1 was GNI's only well permitted for injection of hazardous wastes; however, effective Sept. 24, 1993, the Environmental Protection Agency approved the company's second deepwell for hazardous waste injection. This second well provides important operational redundancy.
 The first quarter was also negatively impacted by the unexpected cancellation of two large volume chemical processing and recovery projects. In one instance, the customer ceased production and marketing of an entire group of products, and in the other instance, soft demand for the customer's end-product forced curtailment of production.
 Carl V. Rush, Jr., president and chief executive officer, said, "The results of the first quarter were clearly a disappointment; however, the operational redundancy provided by the second deepwell coupled with broadened processing capabilities will serve to insulate the company from this combination of events in the future. And, construction and marketing of the additional processing capabilities is proceeding on schedule."
 The first quarter's financial results also reflect the additional common shares outstanding from the Company's sale of 1,214,000 common shares in a public offering completed in mid-April 1993. Shares used to calculate earnings per share for the quarter ended June 30, 1993 were 6,627,345 compared to 5,215,450 for the same quarter in 1992.
 The GNI Group, Inc., headquartered in Deer Park, Texas, provides specialized chemical recovery and processing services and treats and disposes of hazardous and non-hazardous waste and by-product streams.
 THE GNI GROUP, INC.
 Consolidated Statements Of Operations
 (unaudited)
 Three Months Ended
 Sept. 30, 1993 1992
 Revenues $ 5,259,540 $ 6,068,256
 Operating income (loss) (115,305) 1,083,876
 Income (loss) before tax ( 95,979) 900,118
 Net income (loss) ( 63,346) 566,156
 Net income (loss) per share $ (.01) $ .11
 Shares used to calculate
 earnings per share 6,627,345 5,215,450
 -0- 10/19/93
 /CONTACT: Titus H. Harris III, executive vice president and CFO of The GNI Group, 713-930-0350, or Pat L. Hoyt of Hoyt & Associates Investor Relations, 713-665-2549/
 (GNUC)


CO: The GNI Group, Inc. ST: Texas IN: ENV SU: ERN

SH -- NY025 -- 3815 10/19/93 09:45 EDT
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Publication:PR Newswire
Date:Oct 19, 1993
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