Owosso Corporation Announces Results for the Third Quarter of Fiscal 2000

21 August 2000

    KING OF PRUSSIA, Pa. - Owosso Corporation today announced a net loss for 
common shareholders of ($85,000), or ($0.01) per share, for its third fiscal 
quarter ended July 30, 2000, as compared to net income available for common
shareholders of $779,000 or $0.13 per share, for the prior year quarter.
Third quarter net sales were $41.8 million, as compared to $43.9 million in
the prior year quarter; income from operations was $1.7 million, as compared
to $3.2 million.

    For the nine months ended July 30, 2000, the Company recorded a net loss
of ($351,000), or ($0.06) per share, as compared to net income available for
common shareholders of $1.4 million, or $0.24 per share in the prior year
period.  Net sales for the nine-month period of 2000 were $124.9 million, as
compared to $128.5 million in the prior year period; income from operations
was $4.7 million in the current year period, as compared to $6.9 million in
the prior year period.

    Income from operations from the Motors segment was $1.9 million, or 12.9%
of net sales, in the third quarter of 2000, as compared to $2.6 million, or
15.7% of net sales, in the prior year quarter.  For the nine-month period,
income from operations from the Motors segment was $4.4 million, or 10.0% of
net sales, as compared to $6.7 million, or 14.1% of net sales in the prior
year period.  These results reflect lower sales volume to the recreational
vehicle and healthcare markets as compared to last year.  Sales to the
recreational vehicle market continued to be adversely affected in the third
quarter by design issues associated with a new motor developed for this
market.  The design issues were resolved during the third quarter and the
Company expects sales to this market to improve during the fourth fiscal
quarter of 2000.

    Income from operations for the Motors segment also continued to be
unfavorably impacted by temporary production inefficiencies resulting from a
complete overhaul of the Motor Products-Michigan facility from batch
processing to demand flow technology during the second quarter of 2000.  The
Company has seen improvement in productivity levels at Motor Products over the
second quarter and expects further improvement in the coming months.

    The Coils segment reported a loss from operations of ($65,000), or 0.6% of
net sales, in the third quarter of 2000, as compared to income from operations
of $893,000, or 7.4% of net sales, in the prior year quarter.  For the nine-
month period, income from operations for the Coils segment was $841,000, or
2.5% of net sales, as compared to $3.3 million, or 9.1% of net sales, in the
prior year period.  These results reflect lower sales volume to the beverage
refrigeration and heavy truck markets and lower margins resulting from
manufacturing inefficiencies.  The Company expects the heavy truck market to
continue to decline in the fourth quarter.

    Income from operations at Sooner Trailer was $253,000, or 2.1% of net
sales in the third quarter of 2000, as compared to $771,000, or 7.1% of net
sales in the prior year quarter.  For the nine-month period, income from
operations was $1.3 million, or 3.8% of net sales, as compared to
$1.6 million, or 5.5% of net sales for the prior year period.  Demand for
Sooner's products continues to be strong with a year to date sales increase of
17%.  During the second quarter of 2000, Sooner initiated efforts to redefine
its manufacturing process by adopting more modern and efficient techniques.
The temporary disruption this has caused to the business has unfavorably
affected its profitability during both the second and third quarters of 2000.
The Company expects profitability at Sooner to improve during the fourth
quarter of 2000.

                              OWOSSO CORPORATION
                    (in thousands, except per share data)

    Income Statement Data:
                            Three Months Ended         Nine Months Ended
                        July 30,  Aug. 1,   %     July 30,  Aug. 1,    %
                          2000     1999   Change    2000     1999    Change

    Net sales           $41,824  $43,910 (4.8%) $124,941  $128,487   (2.8%)

    Gross profit          6,884    8,796  (21.7%)  21,119   25,320  (16.6%)

    Income from
     operations           1,701    3,150  (46.0%)   4,727    6,876  (31.2%)

    Income before taxes     434    2,147  (79.8%)     979    3,491  (72.0%)

    Net income              197    1,054  (81.3%)     488    2,221  (78.0%)

    Net income (loss)
     available for common
     shareholders **        (85)     779 (110.8%)    (351)   1,402 (125.0%)

    Income (loss) per
     basic and diluted
     share               $(0.01)   $0.13 (110.8%)  $(0.06)   $0.24 (125.0%)

    Average basic
     shares outstanding   5,850    5,830            5,842    5,824


                                                    July 30,      October 31,
                                                      2000            1999

    Current assets                                   $43,654        $42,654

    Net property, plant and equipment                 34,108         35,900

    Total assets                                     113,663        116,690

    Current liabilities                               23,118         25,743

    Total debt, including current portion             54,791         55,480

    Stockholders' equity                             $32,847        $33,984

    ** Net income (loss) available for common shareholders is stated after
deduction of preferred stock dividends of $187 for each of the three-month
periods and $562 for each of the nine-month periods, and after deduction of
accretion in the book value of preferred stock of $94 and $276 for the three-
and nine-month periods ended July 30, 2000, respectively, and $88 and $257 for
the three- and nine-month periods ended August 1, 1999, respectively.


                                (in thousands)

    Segment Data :
                              Three Months Ended          Nine Months Ended
                              July 30,  August 1,       July 30,    August 1,
                                2000       1999           2000         1999

    Net sales:
      Motors                   $14,821   $16,242         $43,523    $47,864
      Coils                     10,473    12,007          33,685     35,800
      Trailers and agricultural
       equipment                12,216    10,846          34,148     30,274
      Other                      4,314     4,815          13,585     14,549

      Total net sales          $41,824   $43,910        $124,941   $128,487

    Income (loss) from operations:
      Motors                    $1,907    $2,554          $4,373     $6,728
      Coils                        (65)      893             841      3,261
      Trailers and agricultural
       equipment*                  253       771           1,285      1,015
      Other                        712       474           1,865        796
      Unallocated corporate
       charges                  (1,106)   (1,542)         (3,637)    (4,924)

      Total income from
       operations               $1,701    $3,150          $4,727     $6,876

    * The nine-months ended August 1, 1999, includes a net loss from
operations of $607,000 attributable to the Company's former Parker subsidiary.