ENERGY RESEARCH CORPORATION
COMPUTATION OF INCOME (LOSS) PER COMMON SHARE
Three Months Nine Months
Ended July 31, Ended July 31,
1997 1996 1997 1996
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PRIMARY
Shares outstanding,
beginning of period 3,961,736 3,792,873 3,911,787 3,728,914
Weighted average number of
shares issued, retired and
issuable share equivalents 241,736 353,147 293,106 324,368
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Weighted average number of
common and common equivalent
shares outstanding 4,203,193 4,146,020 4,204,893 4,053,282
========= ========= ========= =========
Net income $195,000 $ 122,000 $ 346,000 $ 307,000
========= ========= ========= =========
Net income per common share $ .05 $ .03 $ .08 $ .08
========= ========= ========= =========
FULLY DILUTED
Weighted average number of
common and common equivalent
sharesoutstanding as
adjusted for full dilution 4,273,193 4,342,020 4,274,893 4,249,282
Adjustment for interest,
net of tax, on convertible
long-term debt $ 6,000 $ 19,000 $ 18,000 $ 57,000
========= ========= ========= =========
Adjusted net income $ 201,000 $ 141,000 $ 364,000 $ 364,000
========= ========= ========= =========
Net income per
common share <F1> $ .05 $ .03 $ .09 $ .09
========= ========= ========= =========
<FN>
<F1> These calculations are submitted in accordance with SEC requirements,
although they are not in accordance with APB Opinion No. 15 because they are
anti-dilutive.
</FN>