[COMPANY LOGO] VALCOR REPORTS THIRD QUARTER RESULTS DALLAS, TEXAS . . October 25, 1996 . . Valcor, Inc. reported income from continuing operations of $2.7 million for the third quarter of 1996 compared to $2.1 million in the third quarter of 1995. For the first nine months of 1996, income from continuing operations was $6.8 million compared to $6.4 million in 1995. Margins of the Company's component products business (ergonomic workstation products, drawer slides and locks) improved in the third quarter in part as a result of favorable changes in product mix and currency rates. Fast food comparable sales, up slightly in the third quarter, were up 2% in the year- to-date period. Discontinued operations represents the results of Medite Corporation's building products operations. As previously-reported, the Company expects to complete the sale of substantially all of Medite's assets in the fourth quarter of 1996 at a estimated pre-tax gain of approximately $100 million. SUMMARY OF OPERATIONS (Unaudited) (In millions) THREE MONTHS NINE MONTHS ENDED ENDED SEPTEMBER 30, SEPTEMBER 30, 1995* 1996 1995* 1996 NET SALES Component products $19.4 $21.8 $ 58.8 $ 64.7 Fast food 29.5 29.0 85.1 85.9 ----- ----- ------ ------ $48.9 $50.8 $143.9 $150.6 ===== ===== ====== ====== OPERATING INCOME Component products $ 4.5 $ 5.4 $ 15.1 $ 14.8 Fast food 2.0 2.0 4.9 6.0 ----- ----- ------ ------ TOTAL OPERATING INCOME 6.5 7.4 20.0 20.8 Interest expense 2.9 3.0 8.7 8.9 Corporate items, net .1 (.3) .6 (.2) ----- ----- ------ ------ Income before income 3.5 4.7 10.7 12.1 taxes Income taxes 1.4 2.0 4.3 5.3 ----- ----- ------ ------ Income from continuing 2.1 2.7 6.4 6.8 operations Discontinued operations 1.5 2.0 10.7 (10.7) ----- ----- ------ ------ DRAFT X - 09/12/95 NET INCOME (LOSS) $ 3.6 $ 4.7 $ 17.1 $ (3.9) ===== ===== ====== ====== <F1> *Reclassified for discontinued operations. Valcor Inc., a wholly-owned subsidiary of publicly-traded Valhi, Inc. (NYSE: VHI), has continuing operations in the component products and fast food industries. In connection with the registration of its 9 5/8% Senior Notes due 2003, Valcor files periodic reports with the Securities and Exchange Commission.