EXHIBIT 99.1

                              CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS

     ENStar Inc. ("ENStar" or the "Company") desires to take advantage of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of 1995
and is filing this cautionary statement in connection with such safe harbor
legislation. The Company's Annual Report on Form 10-K, the Company's Annual
Report to Shareholders, any Quarterly Report on Form 10-Q or Report on Form 8-K
filed by the Company or any other written or oral statements made by or on
behalf of the Company may also include forward-looking statements which reflect
the Company's current views with respect to future events and financial
performance. The words "believe," "expect," "anticipate," "intends," "estimate,"
"forecast," "project" and similar expressions identify forward-looking
statements.

     The Company wishes to caution investors that any forward-looking statements
made by or on behalf of the Company are subject to uncertainties and other
factors that could cause actual results to differ materially from such
statements. These uncertainties and other factors include, but are not limited
to, the factors listed below (many of which have been discussed in the Company's
prior filings with the Securities and Exchange Commission). Though the Company
has attempted to list comprehensively these important factors, the Company
wishes to caution investors that other factors may in the future prove to be
important in affecting the Company's results of operations. New factors emerge
from time to time and it is not possible for management to predict all of such
factors, nor can it assess the impact of each such factor on the business or the
extent to which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking statements.

     Investors are further cautioned not to place undue reliance on such
forward-looking statements as they speak only of the Company's views as of the
date the statement was made. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

     Except to the extent otherwise defined below, capitalized terms set forth
below have the meanings assigned to such terms in the Company's Annual Report on
Form 10-K for the year ended December 31, 1997.




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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

LIMITED HISTORY OF PROFITABILITY; UNCERTAINTY OF FUTURE RESULTS

     ENStar has a limited history of profitability.  During 1997, ENStar
experienced an operating loss of approximately $5 million as a result of a
reduction in demand from certain large customers, costs associated with the
introduction of Enstar Networking as a separate business, and the addition of
new engineering and sales personnel within each of its operating companies.
Despite the impact of certain cost reduction efforts implemented in the fourth
quarter of 1997, ENStar expects to record an operating loss for the year ended
December 31, 1998.  ENStar's ability to achieve profitability is primarily
dependent upon Enstar Networking generating higher volumes of service revenues
from network integration and network security consulting.  No assurance can be
made, however, that Enstar Networking will be successful in increasing its
service revenues to an adequate level to achieve profitability.

     Transition's ability to achieve sales growth is highly dependent upon its
ability to offer new products that meet customers' demands in a rapidly changing
market, particularly in light of the relatively short life cycle of its
products.  In order to achieve market acceptance of new products, Transition
plans to continue its investment in research and development.  Transition had
research and development expenses of approximately $1.0 million (7% of net
sales) in 1995, $1.5 million (9% of net sales) in 1996, and $1.4 million
(8.1% of net sales) in 1997.  There can be no assurance, however, that its
research and development efforts will result in commercially successful new
products in the future.  In addition, Transition believes that sales and
marketing expenses will continue to increase in terms of absolute dollars in an
effort to differentiate its products and enhance its competitive position.

     These anticipated increases in operating expenses at Transition may result
in lower operating profit at ENStar, if Transition unable to maintain its
current gross profit margins and/or achieve an appropriate level of sales
growth.  Further, if Enstar Networking is not successful in generating higher
volumes of service revenues, its ability to achieve operating profitability will
be materially adversely affected.  Based on the above factors, there can be no
assurance that ENStar will be able to achieve profitability on a quarterly or
annual basis in the future.









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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

CASH FLOW DEFICITS

     ENStar has experienced cash flow deficits from operations in certain prior
years. ENStar's ratio of earnings to fixed charges for each of the five fiscal
years ended December 31, 1997, 1996, 1995, 1994 and 1993 was (3.76), (.50),
2.54, (0.72), and (2.68), respectively.  During the years 1997, 1996, 1994, and
1993, the Company's earnings were inadequate to cover its fixed charges. The
coverage deficiency was approximately $5,788,000, $257,000, $1,050,000, and
$2,339,000 for the fiscal years ended December 31, 1997, 1996, 1994 and 1993,
respectively.  Based on the Company's recent cash flow deficits, the Company
does not expect its fixed charges to decrease significantly or for its earnings
from its operating subsidiaries to improve significantly.

CERTAIN RISKS PERTAINING TO THE CORVEL COMMON STOCK

     Because CorVel is not a wholly owned subsidiary, the Company does not have
the ability to utilize cash flows from CorVel in connection with its wholly
owned operating subsidiaries or to repay its indebtedness, including the
Debentures. The only cash the Company can obtain from CorVel is cash dividend
payments made to all CorVel shareholders. Since its initial public offering,
CorVel has not paid any dividends and it has indicated that it does not
anticipate doing so during the foreseeable future.

     ENStar does not have any agreement with CorVel requiring CorVel to register
the shares of CorVel Common Stock currently held by ENStar for sale under
federal or state securities laws. In the absence of registration of its CorVel
Common Stock, the ability of ENStar to sell the CorVel Common Stock will be
limited to sales pursuant to Rule 144 of the Securities Act of 1933, as amended
(the "Securities Act"), and the volume limitations thereof, and privately
negotiated sales, which may adversely affect the ability of ENStar to sell a
large portion of its holdings of CorVel Common Stock at a given time.

PRODUCT AND SERVICE DEVELOPMENT RISKS

     With respect to Transition, the market for networking products is subject
to rapid technological change, declining prices, evolving industry standards and
frequent new product introductions and, therefore, requires a high level of
expenditures for research and development. Transition may be required to incur
significant expenditures to develop such product offerings. There can be no








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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

assurance that Transition will be successful in identifying, sourcing,
developing and marketing product enhancements or new products that respond to
this rapidly changing market. Also, there can be no assurance that its product
enhancements and new products will adequately meet the requirements of the
marketplace and achieve market acceptance. A critical factor in market
acceptance of product enhancements and new products is the timely introduction
of such products and enhancements in order to take advantage of existing market
opportunities.  Transition has, in the past, experienced delays in the
introduction of certain of its new products and enhancements.

     The markets for the products and services offered by Americable and Enstar
Networking are also characterized by rapidly changing technology and frequent
new product and service offerings by its competitors.  The introduction of new
technologies can render existing products and services obsolete or unmarketable.
The companies' success will depend on its ability to enhance existing products
and services and to develop and introduce, on a timely and cost-effective basis,
new products and services that keep pace with technological developments and
address increasingly sophisticated customer requirements.

     ENStar's business, financial condition and results of operations could be
materially adversely affected if Transition were to incur delays in developing
or introducing new products or product enhancements or if such new products or
product enhancements did not gain market acceptance or in the event that
Americable or Enstar Networking were to incur delays in sourcing and developing
new products and services or that these products and services fail to achieve
market acceptance.

EXPANSION STRATEGY

     ENStar's expansion strategy includes the addition of new locations in new
geographical markets at Enstar Networking.  Enstar Networking currently
operates in seven locations and the success and the rate of its expansion into
new geographical markets will depend on a number of factors, including general
economic and business conditions affecting the industries of Enstar Networking's
customers in such markets, competition, the availability of sufficient capital,
and the ability to attract and retain qualified personnel and operate
effectively in geographic areas in which Enstar Networking has no prior
experience.  As a result, there can be no assurance that Enstar Networking will
be able to achieve its planned expansion on a timely or profitable basis.







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<PAGE>

                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

     Further, if Enstar Networking experiences significant internal growth,
it may be required to make further investments in personnel and information
systems.  Failure to successfully hire or retain such personnel or implement
such systems could have a material adverse effect on ENStar's results of
operations and financial condition.  There can be no assurance that Enstar
Networking will be able to manage its expanding operations effectively, that
it will be able to maintain or accelerate its recent growth or that Enstar
Networking will be able to operate profitably.

FLUCTUATIONS IN QUARTERLY RESULTS

     ENStar's quarterly revenues and operating results have varied significantly
in the past and will likely continue to do so in the future.  Quarterly revenues
and operating results may fluctuate as a result of the demand for the products
and services of its operating companies, the introduction of new hardware and
software technologies offering improved features, the introduction of new
products and services by competitors, changes in the level of operating
expenses, competitive conditions and economic conditions generally.

     At Enstar Networking, the purchase of its products and services generally
involves a significant commitment of capital, with the delays frequently
associated with large capital expenditures and required authorization procedures
within an organization.  Such expenditures by customers can range from $50,000
to over $500,000.  The sales cycle for Enstar Networking's products and services
generally ranges from three to nine months depending on the size of the project,
extent of competition and degree of the customer's technical expertise.  For
these and other reasons, Enstar Networking's operating results are subject to a
number of risks over which it has little or no control, including customers'
technology life cycle needs, budgetary constraints and internal authorization
reviews.

     A variety of factors may cause period-to-period fluctuations in the
operating results of Americable and Transition.  Such factors include, but are
not limited to, product mix, competitive pricing pressures, material costs and
timely availability, revenue and expenses related to new product introductions,
as well as delays in customer purchases in anticipation of new products or
enhancements.  Further, Transition plans to continue to invest in research and
development, sales and marketing and technical support staff.

     ENStar's operating results also could be adversely affected if its
operating subsidiaries are unable to adjust spending sufficiently in a timely
manner to compensate for any unexpected revenue shortfall.




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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

DEPENDENCE ON, AND NEED TO RECRUIT AND RETAIN, KEY PERSONNEL

     ENStar's success depends to a significant extent on its ability to attract
and retain key personnel.  In particular, Enstar Networking and Transition are
dependent on their respective engineering and technical personnel.  Competition
for such technical personnel is intense and no assurance can be given that
ENStar will be able to recruit and to retain such personnel. The failure to
recruit and to retain management and technical personnel could have a material
adverse effect on ENStar's anticipated growth, revenues and results of
operations.

CONCENTRATION OF REVENUES

     Enstar Networking provides its products and services to customers in
various industries including health care, financial services, legal,
manufacturing, and education.  In 1997 and 1996, Enstar Networking derived
approximately 43% and 52%, respectively, of its revenues from its 25 largest
customers.  While Enstar Networking seeks to build long-term customer
relationships, revenues from any particular customer can fluctuate from
period-to-period due to such customer's purchasing patterns.

     Americable sells products to a number of installers, resellers, other
distributors and system integrators.  During 1997 and 1996, Americable derived
approximately 68% and 76%, respectively, of its sales from its largest 100
customers.

     Transition distributes its products through a number of volume
distributors and resellers throughout the United States and in over 50 countries
worldwide.  During 1997 and 1996, Transition derived approximately 46% and 59%,
respectively, of its sales from its largest 25 customers.

     Any termination or significant disruption of the companies' relationships
with a number of its principal customers could have a material adverse effect on
ENStar's business, financial condition and results of operations. In addition, a
deterioration in the financial condition of any of its principal customers could
expose ENStar to the possibility of large accounts receivable write-offs, which
would adversely affect ENStar's financial condition and results of operations.

DEPENDENCE ON KEY SUPPLIERS AND PRODUCT SUPPLY

     The networking industry has experienced product supply shortages and
customer order backlogs due to the inability of certain manufacturers to supply
certain products on a timely basis.  In addition, certain suppliers have
initiated new channels of distribution that increase competition for the
available product supply.  There can be no assurance that suppliers will be able

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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

to maintain an adequate supply of products to fulfill customer orders for each
of the operating companies on a timely basis.  Each of the operating companies
have experienced product supply shortages in the past and expect to experience
such shortages from time to time in the future.  Failure to obtain adequate
product supplies or fulfill customer orders on a timely basis or substantial
change in the cost of components could affect the companies' ability to deliver
products in a timely and cost-effective manner and could have a material adverse
effect on ENStar's business, financial condition, and results of operations.

     Transition's products include certain components that are currently
available from single or limited sources, some of which require long order lead
times.  Although Transition believes that it would be able to obtain alternative
sources of supply for the components included in its products if required, there
can be no assurance that Transition will be able to locate any such sources or
will be able to obtain alternative sources of supply on a timely and economic
basis, if at all.  Any reduction in supply, interruption or extended delay in
timely supply or change in costs of components could materially adversely affect
Transition's business and results of operations and, consequently, the business,
financial condition and results of operations of ENStar.

     A significant portion of Enstar Networking's revenues is derived from sales
of network hardware, including products of various major manufacturers such as
3Com Corporation, Bay Networks, Inc., and Cisco Systems, Inc.  Americable
derives a significant portion of its sales from cable assemblies, bulk cable and
connectors, including components and materials of certain manufacturers
including Berk-Tek, Inc., AMP Incorporated, and General Cable Corporation.
The agreements with these suppliers from which the companies purchase products
directly generally contain provisions for periodic renewals and for termination
by the supplier without cause, generally upon relatively short notice.  Although
Americable and Enstar Networking believe its supplier relationships are good,
there can be no assurance that their relationships will continue as presently in
effect.  Although Americable and Enstar Networking believe that they would be
able to obtain alternative sources of supply for its products if required, there
can be no assurance that Americable and Enstar Networking will be able to locate
any such sources or will be able to obtain alternative sources of supply on a
timely and economic basis, if at all.  The loss of a major manufacturer or
supplier, the deterioration of a relationship with a major supplier or the
failure of Americable or Enstar Networking to establish good relationships with
major new suppliers as they develop, could have a material adverse effect on
ENStar's business.






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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

INVENTORY MANAGEMENT

     The networking industry is characterized by rapid product improvement and
technological change resulting in relatively short product life cycles and rapid
product obsolescence, which can place inventory at considerable valuation risk.
The typical life cycle of Transition's products ranges from 18 months to three
years.  Some of Transition's products include components that are currently
available from limited sources and require long order lead times.  Because of
the long lead times and Transition's desire to be responsive to customer demand,
Transition has maintained higher inventory levels compared to other networking
manufacturers.  Transition's inventories are valued at the lower of cost or
market and management periodically assesses the appropriateness of the
inventory valuations giving consideration to any slow-moving and nonsalable
inventory relative to current market selling prices of comparable products.
Provisions for inventory obsolescence are recorded in the period any valuation
impairments are identified.  For 1997 and 1996, total inventory write-offs as a
percentage of net sales were approximately 1% and 2.3%, respectively.  During
the fourth quarter of 1996, Transition recorded approximately $500,000 of
provision for inventory obsolescence related to the discontinuance of one of its
advanced LAN stackable hub product lines. Due to the ongoing risk of product
obsolescence and changes in customer demand, there can be no assurances that
Transition will be able to successfully manage its existing and future
inventories.

     Although it is industry practice for Americable's suppliers to provide
price protection to distributors such as Americable in order to reduce the risk
of inventory devaluation, such policies are subject to change. Americable also
has the option of returning, subject to certain limitations, a percentage of its
current product inventories each quarter to certain manufacturers as it assesses
each product's current and forecasted demand. The amount of inventory that can
be returned to suppliers varies under Americable's agreements and such return
policies may provide only limited protection against excess inventory. There can
be no assurance that suppliers will continue such policies, that unforeseen new
product developments will not affect Americable adversely or that Americable can
successfully manage its existing and future inventories. Any inventory
adjustments could adversely affect ENStar's financial condition and results of
operations.









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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

COMPETITION

     Each of ENStar's businesses faces substantial competition from a large
number of companies, some of which are larger, have greater financial resources,
broader name recognition and, in many cases, lower product and operating costs
than ENStar.

     The industry in which Transition operates is highly competitive, and
Transition believes that such competition will continue to intensify.  The
industry is characterized by rapid technological change, declining prices,
short product life cycles, frequent product introductions and evolving industry
standards.  Transition competes with a number of independent companies focused
on the LAN market, including companies with significantly greater financial
resources, more extensive business experience, and greater market and service
capabilities than Transition.  Transition competes with a number of companies
focused on designing and manufacturing products for the LAN market, including,
among others, Allied Telesyn, AMP Incorporated, and Digi International.  Enstar
Networking faces competition from large system integrators such as GE Capital
Information Technology Services, CompuCom Systems Inc., Vanstar Corporation and
a significant number of smaller regional VARs and network integrators.
Significant competitors within Americable's business include, among others,
Anixter International Inc., Anicom, Inc., Kent Electronics Corporation, and
Graybar, Inc.  See "BUSINESS - Competition."  There can be no assurance that
ENStar will be able to compete successfully.

     ENStar expects to face further competition from new market entrants and
possible alliances between competitors in the future. Certain of ENStar's
current and potential competitors have greater financial, technical, marketing
and other resources than ENStar. As a result, they may be able to respond more
quickly to new or emerging technologies and changes in customer requirements or
to devote greater resources to the development, promotion and sale of their
products and services than ENStar. No assurance can be given that ENStar will be
able to compete successfully against current and future competitors. See
"BUSINESS -- Competition."

SHARES ELIGIBLE FOR FUTURE SALE; CONTROL BY MICHAEL FAMILY

     Sales of a substantial number of shares of ENStar Common Stock in the
public market could adversely affect the market price for the ENStar Common
Stock. James A. Michael and Jeffrey J. Michael, each a member of the Board of
Directors of ENStar, and certain limited partnerships controlled by them (the
"Michael Family Shareholders"), beneficially own approximately 1,895,000 (or
57%) of the outstanding Common Stock of ENStar as of March 20, 1998.



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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (continued)

Accordingly, the Michael Family Shareholders will have the ability to exercise
significant influence over the business and affairs of ENStar, including the
ability to approve or reject corporate actions requiring the approval of
shareholders. The shares of ENStar Common Stock held by the Michael Family
Shareholders are "restricted securities" as that term is defined in Rule 144
under the Securities Act. Such shares are eligible for immediate sale, subject
to compliance with the volume limitations and other restrictions of Rule 144.

INDEMNIFICATION OBLIGATIONS WITH RESPECT TO REORGANIZATION TRANSACTIONS

     In connection with the Reorganization Transactions, Enstar agreed to
indemnify Michael against certain losses and to assume certain liabilities of
NSU, including liabilities arising out of the Distribution and any taxes
resulting from the Distribution. There can be no assurance that any obligation
to indemnify Michael for any such loss or other liability will not have a
material adverse effect on the business, financial condition and results of
operations of ENStar.












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