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Meridian National Reports Second Quarter Results

21 October 1999

Meridian National Reports Second Quarter Results

    TOLEDO, Ohio--Oct. 21, 1999--Meridian National Corp. (OTCBB:MRCO)(OTCBB:MRCOP) today reported a net loss of $1,293,000, or $.36 per share, on sales of $10.2 million for the quarter ended Aug. 31, 1999.
    The reported loss includes a non-recurring charge of $1,345,000 to write down certain slow-moving inventories of the steel operations to a net realizable value. Excluding the effects of the inventory write-down, the company would have reported net income of $52,000, or $.01 per share, for the quarter. Results for the second quarter of the prior year showed a net loss of $19,000, or $.01 per share, on sales of $11.0 million.
    Management believes the previously announced investment in the company by the management group of MNP Corp., a privately held corporation located in Utica, Mich., along with the recently completed renegotiation of the company's bank financing on more favorable terms, make available sufficient financing to support and grow the company's operations. Additionally, the company has taken measures which have reduced operating and administrative costs and has revamped its steel purchasing and inventory management practices to enhance future operating results and cash generated from operations.
    For the six months ended Aug. 31, 1999, the company reported a net loss of $1,280,000, or $.36 per share, on sales of $21.1 million. Excluding the effects of the inventory write-down of $1,345,000, the company would have reported net income of $65,000, or nil per share, for the six month period. For the first six months of the prior fiscal year, the company reported a net loss of $415,000, or $.13 per share, on sales of $26.9 million.
    Meridian National processes and distributes steel products and provides commercial paint waste recycling services principally to industrial customers.

    Certain statements in this release may be forward-looking statements that involve risks and uncertainties. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are competitive pressures, availability of product at competitive prices, general economic conditions and the risk factors detailed from time to time in the company's Annual Report on Form 10-K and other material filed with the Securities and Exchange Commission.