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ACTON CORPORATION ANNOUNCES RESULTS OF OPERATIONS

 ACTON CORPORATION ANNOUNCES RESULTS OF OPERATIONS
 RALEIGH, N.C., May 14 /PRNewswire/ -- Acton Corporation


(AMEX: ATN), Common Stock (ATN), $3.75 Cumulative Preferred Stock (ATNPR), today announced net income of $2,216,127 in the first quarter of 1992 or $.73 per primary share ($.56 fully diluted) on net revenues of $64,006,316, compared to a loss of $711,766 or $.44 per primary and fully diluted share on net revenues of $58,572,106 in 1991. All per share computations are after consideration of the Company's preferred stock dividend requirements. The 1992 earnings were primarily attributable to net realized gains of approximately $5,070,000 in the insurance subsidiary's investment portfolio.
 Stockholders' equity increased $5,395,602 during the three months of 1992 primarily due to a $3,446,518 increase in the unrealized gains in the insurance subsidiary's equity securities portfolio along with the reported net income of $2,216,127. However, subsequent to March 31, 1992, stockholders' equity for financial reporting purposes will be reduced by approximately $11 million as a result of the prescribed accounting treatment for Acton's acquisition of Hickory Furniture Company's remaining interest in Sew Simple Systems, Inc., a designer and manufacturer of automated textile machinery located in Fountain Inn, S.C. Had the acquisition taken place prior to March 31, 1992, stockholders' equity would have been reduced to approximately $26,000,000 as of that date.
 In January 1989, Acton entered into a Stock Purchase Agreement whereby Acton paid Hickory $2 million to acquire 99 percent of the common stock of Sew Simple, subject to Hickory's right to sell Sew Simple and retain all proceeds over an amount specified by formula. An independent special committee of Acton's Board of Directors, assisted by an independent investment advisor retained by the committee, investigated the feasibility of acquiring Hickory's remaining interest in Sew Simple and negotiated a purchase price of $13.6 million for Hickory's rights under the Stock Purchase Agreement. Prior to entering into the acquisition agreement, the committee received a written opinion from its investment advisor as to the value of Sew Simple. The consideration given by Acton included the assignment of approximately $12 million previously due to Acton from Hickory and other affiliates plus a note payable for approximately $1.6 million. Future reported results of operations will be favorably impacted as the result of the elimination of Hickory's rights under the Stock Purchase Agreement.
 Acton Corporation is primarily engaged in specialized automobile insurance underwriting, manufacturing, real estate development and the operation of a cable television system.
 ACTON CORPORATION
 FINANCIAL SUMMARY
 (Amounts in Thousands, except per share data)
 (Unaudited)
 March 31,
 1992 1991
 Net revenues $64,006 58,572
 Income (loss) before extraordinary item 1,535 (712)
 Extraordinary income -
 Benefit from utilization
 of net operating loss carryforwards 681 --
 Net income (loss) 2,216 (712)
 Per share data:
 Primary:
 Income (loss) before
 extraordinary item .46 (.44)
 Extraordinary item .27 --
 Net income (loss) .73 (.44)
 Fully diluted:
 Income (loss) before extraordinary item .35 (.44)
 Extraordinary item .21 --
 Net income (loss) .56 (.44)
 Assets 300,933 291,906
 Stockholders' Equity 37,472(A) 35,211
 (A) Stockholders' equity reflecting the April 13, 1992, acquisition of Sew Simple Systems, Inc. would be approximately $26,000,000.
 -0- 5/14/92
 /CONTACT: Glenn J. Kennedy, Chief Financial Officer, Acton Corporation, 919-781-5611/
 (ATN) CO: Acton Corporation ST: North Carolina IN: SU: ERN


CM -- CH013 -- 0486 05/14/92 17:33 EDT
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Date:May 14, 1992
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