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, 1998.











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<PAGE>

                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (CONTINUED)

LIMITED HISTORY OF PROFITABILITY; UNCERTAINTY OF FUTURE RESULTS

     ENStar has a limited history of profitability.  During 1998 and 1997,
ENStar experienced operating losses of approximately $3.7 million and $4.8
million, respectively, 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.  ENStar expects to record an operating
loss for the year ended December 31, 1999.  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.  Enstar Networking closed certain regional operations during
1998 in an effort to reduce operating losses.

     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.

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, 1998, 1997, 1996, 1995 and 1994 was (2.16), (4.26),
 .69, .75 and (1.55), respectively.  During the years 1998, 1997, 1996, 1995 and
1994, the Company's earnings were inadequate to cover its fixed charges. The
coverage deficiency was approximately $5,025,000, $5,489,000, $125,000, $122,000
and $1,390,000 for the fiscal years ended December 31, 1998, 1997, 1996, 1995
and 1994, 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.
















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<PAGE>

                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (CONTINUED)

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

     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 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.
















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<PAGE>

                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (CONTINUED)

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.  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.

     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.

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 is 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.








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<PAGE>

                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (CONTINUED)

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 1998 and 1997, Enstar Networking derived
approximately 74% and 81%, 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 1998 and 1997, Americable derived
approximately 71% and 80%, respectively, of its sales from its largest 100
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
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.

     A significant portion of Enstar Networking's revenues is derived from sales
of network hardware, including products of various major manufacturers such as
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




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<PAGE>

                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (CONTINUED)

DEPENDENCE ON KEY SUPPLIERS AND PRODUCT SUPPLY (Continued)

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.

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.
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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<PAGE>

                            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.
 
     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 1,920,000 (or
65%) of the outstanding Common Stock of ENStar as of March 8, 1999.

     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.








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                             CAUTIONARY STATEMENT
                      REGARDING FORWARD-LOOKING STATEMENTS
                                  (CONTINUED)

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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