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VIROGROUP, INC. REPORTS THIRD-QUARTER AND NINE-MONTH RESULTS

 CAPE CORAL, Fla., July 1 /PRNewswire/ -- ViroGroup, Inc. (NASDAQ-NMS: VIRO) reported a net loss of $146,000 for its third quarter ended May 31, 1993, as compared with net income of $179,000 in the same period a year ago, but it is an improvement over the net loss of $300,000 in the 1993 second quarter, Robert A. Fletcher, chairman and chief executive officer, announced. The net loss per share was $0.09 compared with earnings of $0.07 per share in the same quarter last year and was equal to the per-share results of the most recent quarter. The 1993 third-quarter per-share figure reflects the initiation of quarterly payments of $140,000 in preferred dividends.
 Quarterly gross revenues rose to $7.5 million from $3.8 million in the third quarter of 1992 and $5.2 million in the second quarter of the current fiscal year. The increase in revenues over the prior year is attributed to the acquisition of ETE, Inc. and Environics Inc. Revenues increased in the third quarter compared to the second quarter primarily as the result of the addition of the Environics business, but also as previous job delays in landfill contracts were resolved and engineering work resumed.
 "Our operating results, although showing improvement since last quarter, still reflect the industry-wide decline in spending for environmental projects," Fletcher said, particularly the slowdown in underground-storage-tank remediation projects in our major markets."
 NEW INITIATIVES
 "Overall, we see improvement in the number of new requests for proposals (RFPs), and remain optimistic about a pick-up in commitments within the next year. One particularly bright spot is the growth in business as a result of our strategic relationship with Laidlaw, Inc. Our business with Laidlaw has improved 40 percent over the last quarter, and in those markts where we see further significant opportunities for increased work with Laidlaw, we have chosen to maintain higher staffing levels than immediate demand might warrant in anticipation of this growth in demand for our services."
 "However, during this temporary period of reduced activity, we have not been idle nor do we intend to rely on the strength of our relationship with a few major customers. We have actively reviewed our cost structure, and reduced staff in those markets where the principal source of revenues has been based on underground-storage-tank remediation work. Additionally, we consolidated four of our branch locations into two to reduce overhead in those markets without reducing service to our customers," Fletcher said. "The benefits of these cost savings will become evident in our fourth-quarter results."
 "Additionally, we are developing and implementing new marketing strategies to leverage our recognized environmental expertise into other project areas. While business spending on environmental assessment and remediation programs remains a concern, we have been successful in creating new client awareness and interest for future projects.
 "Longer-term, we expect these strategic moves will expand our participation in the environmental protection of those regions we serve, and improve our overall revenue and profit base," Fletcher said.
 NINE-MONTH RESULTS
 For the nine-month period ended May 31, 1993, ViroGroup had a net loss of $38,000, or $0.06 per share, as compared with net income of $598,000, or $0.27 per share, the prior year. Nine-month gross revenues were $19.4 million versus $10.8 million reported in the comparable period a year ago.
 ViroGroup provides a full range of environmental, hydrogeological, hazardous-waste and solid-waste management services nationwide to correct and improve air, water and soil quality. Most of the company's revenues are derived from the assessment and remediation of groundwater and soil contaminants and the design, permitting, construction management and compliance monitoring of waste-management facilities.
 VIROGROUP, INC.
 CONSOLIDATED STATEMENT OF INCOME (LOSS)
 (In thousands, except per-share amounts; unaudited)
 For the three months For the nine months
 Ended May 31 Ended May 31
 1993 1992 1993 1992
 Gross revenues $7,454.3 $3,778.3 $19,425.0 $10,750.4
 Cost of revenues 5,067.9 2,346.0 12,797.0 6,668.7
 Gross profit 2,386.4 1,432.3 6,628.0 4,081.7
 Selling, general and
 administrative
 expenses 2,523.7 1,161.5 6,336.5 3,102.0
 Income (loss)
 from operations (137.3) 270.8 291.5 979.7
 Other income/
 (expense):
 Interest expense,
 net (26.8) (15.4) (138.7) (66.4)
 Interest income 12.2 42.3 36.9 74.3
 Amortization of
 goodwill (73.5) 0.0 (161.1) 0.0
 Other, net 10.4 0.5 29.1 8.8
 Income (loss) before
 income taxes (215.0) 298.2 57.7 996.4
 Provision (benefit)
 for income taxes (69.4) 119.6 95.3 398.6
 Net income (loss) (145.6) 178.6 (37.6) 597.8
 Earnings (loss)
 per common share ($0.09) $0.07 ($0.06) $0.27
 Weighted average
 number of shares
 outstanding 3,180.9 2,721.9 3,199.8 2,211.0
 -0- 7/1/93
 /CONTACT: Robert A. Fletcher, chairman and CEO of ViroGroup, Inc., 813-574-1919/
 (VIRO)


CO: ViroGroup, Inc. ST: Florida IN: ENV SU: ERN

DD-JG -- DE003 -- 7582 07/01/93 09:40 EDT
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Date:Jul 1, 1993
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