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WTD ANNOUNCES AGREEMENT WITH MAJOR LENDERS; REPORTS SECOND QUARTER RESULTS

 WTD ANNOUNCES AGREEMENT WITH MAJOR LENDERS;
 REPORTS SECOND QUARTER RESULTS
 PORTLAND, Ore., Dec. 2 /PRNewswire/ -- WTD Industries Inc. (NASDAQ: WTDQC) announced today that it has reached an agreement in principle with certain of its major lenders on the material terms of a consensual plan in its Chapter 11 proceedings. The company will amend its Plan and Disclosure Statement presently on file with the court and commence the several month process of obtaining approvals of the plan by all creditor classes and the court.
 WTD also reported today a net loss of $2.205 million, or 35 cents per share, for the quarter ended Oct. 31, 1991, compared with a net loss of $8.817 million, or $1.42 per share, for the same period in 1990. Second quarter sales were $51.016 million, down 30 percent from the $73.074 million in the comparable period last year. The decrease in sales was principally attributable to lower production and shipment levels.
 For the six months ended Oct. 31, 1991, net income was $0.85 million, or 14 cents per share, compared to a net loss of $16.11 million, or $2.59 per share, during the same period last year. Sales were $107.255 million for the six months, down from $170.868 million in the prior year.
 "Compared to a year ago, we have made significant progress as our restructuring efforts begin to yield results," said WTD president Bruce L. Engel.
 "Nevertheless, the depressed national economy continues to cause severe weakness in building activity and lumber demand. In addition to low product prices, our quarterly results were also adversely affected by unusually dry weather and forest fire conditions in September and October, which disrupted log flows and lumber production. Looking ahead, we anticipate that lumber market conditions will improve with spring buying," Engel continued.
 The consensual Chapter 11 Plan has been tentatively agreed to by WTD's major secured lenders with the exception of commercial banks led by First Interstate Bank of Oregon. The Plan contains some significant changes from the previously filed company plan but does not affect WTD's pending lender liability claims of $30 million against First Interstate. First Interstate Bank has sought permission to file its version of a Plan of Reorganization which would extinguish the lender liability claims against it.
 "The revised company plan will allow for ultimate payment in full of all creditors and leave existing common stock in place, though significantly diluted. We believe that it will maximize the company's viability and its performance as a reorganized operation," said Engel.
 WTD also announced that effective today, its stock quotations will appear in the NASDAQ Weekly Bid & Asked Quotations instead of the NASDAQ National Market Issues listing.
 WTD INDUSTRIES INC.
 FINANCIAL HIGHLIGHTS
 (Unaudited, dollars in thousands, except per-share amounts)
 Three Months Six Months
 Ended Oct. 31: 1991 1990 1991 1990
 Net sales $51,016 $73,074 $107,255 $170,868
 Cost of sales 49,693 77,453 98,208 176,974
 Gross profit (loss) 1,323 (4,379) 9,047 (6,106)
 Selling, general &
 administrative expenses 2,691 5,924 6,182 12,262
 Reorganization charges 843 -- 1,862 --
 Operating income (loss) (2,211) (10,303) 1,003 (18,368)
 Interest and other expense (39) (3,087) (136) (6,417)
 Income (loss) before
 income taxes (2,250) (13,390) 867 (24,785)
 Provision for income
 taxes (benefit) (900) (4,573) 347 (8,675)
 Income (loss) before
 extraordinary item (1,350) (8,817) 520 (16,110)
 Extraordinary item-income
 tax benefit of net operating
 loss carryforward (855) -- 330 --
 Net income (loss) $(2,205) $(8,817) $ 850 $(16,110)
 Net income (loss) per
 common share:
 Before extraordinary item $ (0.22) $ (1.42) $ 0.08 $ (2.59)
 Extraordinary item (0.13) -- 0.06 --
 Net income (loss) $ (0.35) $ (1.42) $ 0.14 $ (2.59)
 -0- 12/2/91
 /CONTACT: Robert J. Riecke of WTD Industries, 503-246-3440/
 (WTDQC) CO: WTD Industries Inc. ST: Oregon IN: PAP SU: ERN


LM-JH -- SE011 -- 8559 12/02/91 19:17 EST
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Date:Dec 2, 1991
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