Mining Services Board Authorizes Stock Repurchase…Announces Contract Renewals

Business Wire, Nov 12, 1998

SALT LAKE CITY--(BUSINESS WIRE)--Nov. 12, 1998--John T. Day, President and Chief Executive Officer of Mining Services International Corp. (NASDAQ/NMS:MSIX), announced today that the company recently renewed two significant contracts, one with Western Energy (Montana) and another with Trapper Mining (Colorado), for the supply of components used in explosives and blasting services.

Both companies are in the basic industry of providing low-sulfur, high-quality, coal to the electric utility industry. According to Day, revenue over the extended life of these contracts is expected to exceed $18 million.

Day said that MSI has also entered into formal agreements in acquiring O'Brien Design Associates, Inc. (ODA; Charleston, R.I.). ODA designs and produces explosive facilities and specialty products which will assist MSI in its long range strategic growth plan.

"Notwithstanding a lackluster market, MSI's future looks bright. We continue to identify opportunities, both internal and external, to maximize the company's potential over the longer term and to increase shareholder value," said Day. "While our cost reduction program continues to create operating efficiencies throughout the company, we are also encouraged by the results of MSI's more aggressive business development and efforts, which will serve us well," he said.

Day also indicated that the cash dividend announced yesterday, November 10, had inadvertently been given as $0.02 per share for 1998 when in fact, it is $0.025 per share and is payable to shareholders of record, as of November 30, 1998, with payment on December 21, 1998. This represents a 25% increase over 1997.

Mining Services International Corporation is a leading developer of explosives technology and a manufacturer and supplier of high quality explosives and specialty chemicals to the mining industry. MSI markets its products and technology in the major mining countries worldwide. In addition to wholly owned projects, the company has a 50/50 joint venture with the Degussa Corporation in the western United States and participates in a 50/50 joint venture with Norsk Hydro conducting business in Colombia, South America.

Note: The foregoing release contains "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the Company's business prospects and performance. These include, but are not limited to, economic, competitive, governmental, technological and other factors discussed in the Company's reports to shareholders and periodic filings with the Securities and Exchange Commission.