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ORANGE COUNTY EARNINGS

May 16, 1997

Metalclad Corp.: The Newport Beach company, which develops industrial waste treatment facilities in Mexico and industrial insulation services in Southern California, posted a net loss of $1.3 million, or 4 cents a share, for the first quarter, compared with a net loss of $2.1 million for the 1996 first quarter. Revenue fell 33% to $3.1 million from $4.6 million. The company said the decline in revenue was due in part to the accounting of a joint venture as an unconsolidated affiliate.

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