APOGEE ENTERPRISES EXPECTS WEAK FIRST QUARTER; RECEIVES LETTER OF INTENT ON LARGEST JOB

             APOGEE ENTERPRISES EXPECTS WEAK FIRST QUARTER;

                RECEIVES LETTER OF INTENT ON LARGEST JOB

    MINNEAPOLIS, June 11 /PRNewswire/ -- Apogee Enterprises, Inc. (NASDAQ-NMS: APOG) is likely to report later this month first quarter results that are not much better than breakeven, down significantly from earnings of $2.7 million, or 20 cents per share, a year ago, the company announced today.

    Apogee's performance is being limited by weak industry demand and strongly competitive pricing, according to Donald W. Goldfus, chairman and chief executive officer.  Apogee is the nation's largest curtainwall contractor and architectural glass fabricator, and one of the largest fabricators and retailers of replacement auto glass.

    In remarks prepared for a meeting with analysts and institutional investors today, Goldfus reiterated earlier assessments that fiscal (February) 1993 will be a very challenging year for Apogee.

    "Particularly in the nonresidential construction arena, Apogee was able to grow through several years of industry decline," Goldfus noted. "Today, we continue to win a substantial amount of the business that can be obtained profitability, but overall activity levels in our traditional markets do not offer as much opportunity as in the past."

     The full-year outlook is stronger than the first-quarter numbers would suggest, he said, although it is too early to project performance with any precision.  Apogee's backlog has been holding steady, standing at $228 million at May 30, versus $232 million a year ago and $232 million at Feb. 29, 1992.

    Goldfus said the backlog does not include the recently received letter of intent for the commercial construction division's largest contract to date, the $42 million curtainwall project for the Getty Museum in Los Angeles.  The division also recently won the $10 million contract for the MGM Grand Casino & Theme Park in Las Vegas, but Goldfus noted that relatively few such projects are available for bid in a depressed construction market.  Likewise, although penetration of security markets is growing, and active international marketing is being pursued, the division is absorbing relatively high initial marketing costs.  Apogee's window fabrication division, which also serves the construction markets, is reporting weak order rates that limit the potential to achieve maximum productivity in manufacturing.

    Consolidation of operations, following the shutdown of glass fabrication and coating facilities in California, is improving volumes for Apogee's glass fabrication division, but low prices for architectural and automotive glass are limiting the division's ability to capitalize on that improved throughput.  Similarly, the installation and distribution division, the nation's second largest auto glass retailer, has experienced significant price erosion due to pressures from its biggest customers -- auto insurers.  In response, the division is moving aggressively to reduce costs and build volume in the changed market environment.

    "We have made a strong effort to cut costs, improve efficiencies and otherwise prepare our operating units to grow profitably even in this weak environment.  We don't expect all our internal efforts to have an immediate impact.  But we do plan to capitalize on current industry conditions by making our business units leaner, smarter and more effective."

    Apogee's financial strength and market position should make the company one of the strong survivors of any industry consolidation, Goldfus added.  In recent years, Apogee's divisions have continued to operate profitability as competitors -- including larger firms -- exited the market or closed their doors.

    Apogee Enterprises is an industry leader in the fabrication, installation and distribution of glass and aluminum.  Its products and services include glass, windows and curtainwall for commercial and institutional construction and remodeling markets; curtainwall installation at major high-rise construction sites; design, manufacture and installation of institutional and government security systems; metal and glass coating services; fabrication, sale and installation of automotive glass; and such consumer-oriented products as venetian blinds, shutters, picture frame glass and computer anti-glare screens. Headquartered in Minneapolis, the company's stock is traded on NASDAQ's National Market System under the symbol APOG.