News | February 3, 1999

THERMORETEC CORPORATION ANNOUNCES THIRD QUARTER RESULTS

CONCORD, Mass., Feb. 3 /PRNewswire/-- ThermoRetec Corporation (Amex: THN) today reported revenues of $36,907,000 for the third quarter of fiscal 1999, ended January 2, 1999, compared with revenues of $34,620, 000 for the same period in fiscal 1998. Net income for the quarter was $506,000, or $.04 per share, versus $1,701,000, or $.13 per share, last year. During the third quarter of fiscal 1998, the company sold its interest in a joint venture, recognizing a gain of approximately $3 million. Without this gain, net income for the third quarter of fiscal 1998 would have been approximately breakeven.

"We're pleased that operating income increased substantially, from $314, 000 to $1,355,000, suggesting that we are continuing to make progress in our business," said Robert W. Dunlap, president and chief executive officer of ThermoRetec. "We're also pleased that our consulting and engineering group recently announced an important four-year master services agreement with BP Amoco, while our nuclear-services group is playing an integral role as the U.S. Department of Energy pursues its long-term strategy of decontaminating and remediating sites across the country."

Condensed Consolidated Statement of Operations (unaudited)

Three Months Ended Nine Months Ended
(In thousands except per share amounts)

Jan. 2, 1999 Jan. 3, 1998 Jan. 2, 1999 Jan. 3, 1998

Revenues $ 36,907 $ 34,620 $106,463 $ 96,463

Costs and Operating
Expenses:
Cost of revenues 31,364 30,673 89,743 82,871
Selling, general,
and administrative
expenses 4,188 3,633 12,310 10,727
Restructuring costs -- -- 9,176 --
35,552 34,306 111,229 93,598

Operating Income (Loss) 1,355 314 (4,766) 2,865
Interest Income 197 231 548 773
Interest Expense (542) (558) (1,625) (1,665)
Gain on Sale of
Unconsolidated Subsidiary -- 3,012 -- 3,012
Other Income -- -- -- 378

Income (Loss) Before
Income Taxes 1,010 2,999 (5,843) 5,363
Income Tax (Provision)
Benefit (504) (1,298) 1,514 (2,390)

Net Income (Loss) $506 $1,701 $ (4,329) $2,973

Earnings (Loss) per Share:
Basic $ .04 $ .13 $(.33) $ .24

Diluted $ .04 $ .13 $(.33) $ .23

Weighted Average Shares:
Basic 13,168 12,718 13,043 12,552

Diluted 13,178 15,207 13,043 12,994

ThermoRetec Corporation is a national provider of environmental
services. The company integrates advanced management, regulatory, and technology skills to provide compliance management, resource recovery and recycling, radioactive-waste management, remediation construction, and health and safety monitoring. ThermoRetec is a public subsidiary of Thermo TerraTech Inc. (Amex: TTT), a Thermo Electron (NYSE: TMO) company. More information is available on the Internet at http://www.thermo.com/subsid/thn1.html.

The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward- looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth under the heading "Forward-looking Statements" in Exhibit 13 to the company's annual report on Form 10-K for the fiscal year ended April 4, 1998. These include risks and uncertainties relating to: dependence of the company's businesses on environmental regulation, potential environmental and regulatory liability, intense competition, development and commercialization of technology, possible obsolescence of the company's services due to technological change, the company's acquisition strategy, the availability of government funding, the effect of seasonal influences on the company's performance, and the potential impact of the year 2000 on processing date-sensitive information.
SOURCE Thermo Electron Corporation



02/03/99 /CONTACT: Investor: 781-622-1111 or Media: 781-622-1252 of Thermo Electron/

/Company News On-Call: http://www.prnewswire.com/comp/877850.html or fax, 800-758-5804, ext. 877850/

/Web site: http://www.thermo.com/subsid/thn1.html/ (TMO THN TTT)
CO: Thermo Electron Corporation; Thermo TerraTech Inc.; ThermoRetec
ST: Massachusetts IN: ENV SU: ERN