NEW YORK, Dec. 17 /PRNewswire/ -- BHI Corporation (Nasdaq: BHIKF), a
corporation with core businesses in Banking and Financial Services and
Construction and Property Development, as well as other strategic investments
in Central America and the Caribbean, reported net income for the six months
ended October 31, 1996 of $8.3m (1995 - $6.8m before restructuring and special
charges), an increase of 21% over the prior year.  Earnings per share was
$1.17 (1995 - $0.95 before restructuring and special charges), an increase of
23%.
    Commenting on the results, BHI's Chief Executive Officer Allan Forrest
said, "We are especially pleased with the strong performance in our Banking
and Financial Services division for the first six months ended
October 31, 1996.  Our focus on regional expansion continues, our strategic
regional investments are all performing well and we expect to achieve our
full-year target of 25% growth in earnings per share compared with earnings
per share (pre-restructuring) of $2.04 for fiscal 1996."
    The Directors have provided that shareholders of record on
February 7, 1997, will receive a dividend in Ordinary Shares of BHI on the
basis of one new Ordinary Share for every 72 Ordinary Shares then held.
Shareholders will be given the option to receive a cash dividend of $0.27 per
share, payable on March 3, 1997.  On the basis that all shareholders receive
Ordinary Shares, the number of Ordinary Shares in issue, excluding treasury
stock, would increase by 1.4%.  If all shareholders elect for cash, the total
amount payable would be $1.9m.

    Banking and Financial Services
    Income from Banking and Financial Services increased 24% to $3.96m
(1995 - $3.2m) after allowing for intercompany financing costs.  This reflects
a 14% increase in average lending resulting in a 17% increase in net interest
income.  Strong growth in non-interest income - up 32% in the first half -
reflects higher fee income, increased issuance of MasterCard and Visa cards
and further growth in offshore financial services.  The Belize Bank has
recently selected a new state-of-the-art software platform which will provide
the Bank with significantly more speed and flexibility in the development and
introduction of new products and services which will increase the Bank's
competitive advantage.
    The international financial services sector showed continued growth.  The
number of US dollar accounts has continued to increase with average balances
up by 19%.  New products targeted for launch in the second half include a
range of investment funds and co-branded credit cards.  Company and ship
registration through Belize International Services Limited (BISL) continued
their impressive growth:  companies registered increased 19% to 4,413 and ship
registrations increased 19% to 1,641.
    The Banking and Financial Services division continues to actively pursue
expansion opportunities in Central America and the Caribbean region.

    Construction and Property Development
    In the six months ended October 31, 1996, results from BHI's construction
and property operations were behind last year's results.  Johnston
International Limited was affected by the cyclical nature of the construction
business, while Hadsphaltic International Limited performed above
expectations.  Leeward Limited's results were affected by decisions taken to
expense certain development costs.  Recent contract awards for Johnston and
Hadsphaltic include a Comfort Suites Hotel in the Turks and Caicos Islands;
and construction of health clinics and condominiums in the Cayman Islands.
Efforts to obtain work in the Eastern Caribbean and Central America have
increased, the backlog is picking up and the division is expected to achieve
its goals for the full year.
    The Leeward development project on Providenciales in the Turks and Caicos
Islands has invested further in project infrastructure and new marketing
initiatives and the design and construction of three model homes.  The master
plan has been updated and pre-sales of home and land packages have begun.

    Strategic Regional Investments
    BHI's significant associated companies include the following holdings:
20% of Energia Global Inc. (EGI) and 20% of Belize Electricity Limited (BEL)
in energy;  26% of Belize Telecommunications Limited (BTL); and 24% of the
NUMAR Group in the agro-processing sector.
    Performance from BHI's regional investments exceeded expectations in the
six months ended October 31, 1996.  BHI's equity in the net income of its
associates more than doubled over the prior year to $5.2m.  This reflects
improved performance from Belize Telecommunications and includes results from
the NUMAR Group which was acquired in December 1995.
    Highlights of the period for EGI include the start of commercial
operations at the $25m, 16 megawatt Don Pedro hydroelectric facility in Costa
Rica and completion of financing with GE Capital for the $33m, 17 megawatt Rio
Volcan facility.  EGI is pursuing several regional opportunities and is well
positioned to build a portfolio in private power generation and distribution
in Central America.
    The NUMAR group is the  market leader in Costa Rica in edible oils,
margarine, industrial oils and animal feed. BHI's share of net income for the
period amounted to $3.9m.  Both domestic and export sales were strong during
the period.  Repayment of the five-year $50m acquisition financing is well
ahead of schedule, operating and administrative expenses have been reduced as
a result of rationalizing the group's operations and NUMAR is on track for a
strong full-year performance.
    BHI's share of the net income of Belize Telecommunications Limited was up
7% to $1.5m.  Total sales increased 3% from $17.8m to $18.3m reflecting
stronger growth in cellular and other new services offset by a small decline
in international calls.  A continuing investment program during the coming
months includes the installation of fiber optic cable links between the main
switching centers.  Dividends received for the six months ended
October 31, 1996 amounted to $1.0m, up 23% on the prior year.
    BHI's share of the net income of Belize Electricity Limited amounted to
$0.4m, unchanged on the prior year.  Total sales increased 4% from $15.9m to
$16.6m.  Other investments which include the 90% owned Radisson Fort George
Hotel, the wholly owned rice processing operations of Columbus Foods Limited
and BHI's interests in citrus and broadcasting in Belize performed to
expectations.
    BHI prepares its financial statements in US dollars and in accordance with
US GAAP.

    FORWARD LOOKING STATEMENT
    Certain statements in this press release constitute "forward looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.  In particular, statements contained herein regarding expectations
with respect to future revenue and business expansion, are subject to known
and unknown risks, uncertainties and contingencies, many of which are beyond
the control of BHI, which may cause actual results, performance or
achievements to differ materially from anticipated results, including, among
others, overall economic and business conditions, the demand for BHI's
services, competitive factors, regulatory approvals and the uncertainty of
consummation of future acquisitions.  Additional factors which may affect
BHI's business and performance are set forth in BHI's filings with the
Securities and Exchange Commission.

    Summarized Consolidated Income Statement
    US dollars in thousands, except per share and unit data


    Six months ended October 31                   1996     1995     % change
    Operating income                             $8,504   $6,205       +37%
    Interest income/(expense) net                  (245)    809
    Income taxes                                     --    (200)
    Net income before restructuring and
      special charges                            $8,259  $6,814        +21%
    Restructuring and special charges (c)            --    (528)
    Net Income                                   $8,259  $6,286        +31%

    Share Data
    Per Ordinary Share

    Six months ended October 31                    1996     1995     % change
    Net income before restructuring
     and special charges                          $1.17    $0.95       +23%
    Net income                                    $1.17    $0.88       +33%
    Cash dividends declared (a)                   $0.18    $0.15       +20%
    Net assets                                   $10.94   $10.35        +6%

    Number of Ordinary Shares in issue
     at period end (b)                        7,369,373  7,188,989      +3%

    Weighted average number of Ordinary Shares
     for the period (b)                       7,053,566  7,146,670

    Notes:
        a)   For the six months ended October 31, 1996, shareholders received
    a stock dividend of 1 new Ordinary Share for every 79 Ordinary Shares held
    on August 09, 1996 with a cash option of $0.18 per Ordinary Share.  A
    further 84,650 Ordinary Shares were issued.
        b)   Including A Ordinary Shares.
        c)   Restructuring and special charges for the six months ended
    October 31, 1995 represent charges expensed in that period which were
    classified as restructuring and special charges in the financial
    statements for the year ended April 30, 1996.


    Summarized Consolidated Balance Sheet
    US dollars in thousands

                                                  October 31,        April 30,
                                                       1996             1996

    Assets
    Cash, cash equivalents and other liquid assets  $37,728          $51,590
    Other securities                                  4,389            4,389
    Loans (net of unearned income)                  100,401           87,201
      Less:  allowance for loan losses               (1,872)          (1,654)
    Equity investments                               52,051           45,797
    Premises and equipment and other assets          34,238           42,237
    Total Assets                                   $226,935         $229,560

    Liabilities and Shareholders' Equity
    Deposits                                        132,535          134,315
    Short-term debt                                   5,762            4,984
    Other liabilities                                 7,353           18,484
    Long-term debt                                      653              708

    Total liabilities                               146,303          158,491
    Shareholders' Equity                             80,632           71,069

    Total Liabilities and Shareholders' Equity     $226,935         $229,560


    Consolidated Statement of Shareholders' Equity
    US dollars in thousands

    Six months ended October 31                        1996              1995
    Balance, May 1                                  $71,069           $68,274
    Net income                                        8,259             6,286
    Sale of Treasury shares                           1,358                --
    Translation adjustment                               14                (4)
    Cash dividends paid (note)                          (68)             (117)
    Balance, October 31                             $80,632           $74,439

    Note:   Shareholders who did not elect to receive cash were issued an
additional 84,650 Ordinary Shares in the Corporation on September 02, 1996.

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