---

Imo Records Judgment, Re-Issues First Quarter Earnings

14 May 1997

Imo Records Judgment, Re-Issues First Quarter Earnings

    LAWRENCEVILLE, N.J., May 14 -- Imo Industries Inc.
today announced that, as a result of a judgment entered against
the Company by the US District Court for the Northern District of California,
it was re-issuing its first quarter earnings and reporting a $12.8 million net
loss in the first quarter of 1997. As Imo reported in a press release dated
May 9, 1997, the District Court reinstated a previously vacated judgment in
favor of International Insurance Company with a new judgment dated April 30,
1997 for approximately $12.9 million, which includes interest to date of
approximately $1.7 million. The judgment and interest have subsequently
been recorded as a charge to income in the first quarter of 1997. The charge
is classified as an unusual item and is not applicable to any of Imo's
segments. In mid-April, Imo had previously announced earnings of $.1 million
for the first quarter.
    The company is reviewing various options available to it, including an
appeal to the Ninth Circuit Court of Appeals.  If the Company elects to
appeal, the Company must either pay the amount of the International judgment
under a reservation of rights, post an appeal bond backed by a letter of
credit in an amount to be determined by the court, or provide other
satisfactory financial arrangements as security in the event of an
unsuccessful appeal.  Settlement discussions could also be undertaken with
International.
    Imo Industries, with 1996 sales of $469 million, is a diversified
manufacturer of pumps, fluid sensors, motion control products, remote control
systems and automotive components, with operations worldwide.

SOURCE  Imo Industries Inc.