Aerovox reports year-end results.

NORTH DARTMOUTH, Mass.--(BUSINESS WIRE)--Feb. 28, l996--Aerovox Incorporated (Nasdaq/NM:ARVX) today reported 1995 revenues of $128,322,000, an increase of 2% over 1994 revenues. Net income for the year ended December 30, l995, totaled $1,601,000, or $.30 per share. In the prior year, net income was $3,024,000, or $.56 per share.

The Company noted that 1995 earnings were affected by reduced volume of domestic shipments as well as continued gross margin losses in Mexico. On the other hand, sales by the Company's United Kingdom subsidiary increased approximately 25% and their gross margins were up almost one full percentage point compared to 1994.

Fourth quarter 1995 revenues were $29,766,000 compared to $29,051,000 for the same period in 1994. For the three months ended December 30, l995, Aerovox posted net income of $82,000, or $.02 per share, compared to an after-tax loss of $714,000, or $.14 per share for the fourth quarter of 1994. The Company noted that the comparative improvement in fourth quarter performance was the result of improvements at its aluminum electrolytic capacitor operation in Mexico, though that business is still operating at a loss.

Aerovox recently announced that management of its two plants in Juarez, Mexico is being consolidated for improved efficiency and control. "With the measures we have just taken in Mexico, we believe," stated Aerovox Chairman and CEO Clifford H. Tuttle, "that the Company is in a much better position to achieve the financial goals established for our Mexican operations."

Aerovox Incorporated is a leading manufacturer of film, paper and aluminum electrolytic capacitors. The Company sells its products worldwide, principally to OEMs as components in electrical and electronic equipment. Aerovox manufacturing facilities are located in New Bedford, Massachusetts; Huntsville, Alabama; Weymouth, England; and Juarez, Mexico. -0-

                          AEROVOX INCORPORATED
                    Consolidated Statements Of Income
              (Amounts in thousands, except per share data)

                      Three Months Ended            Year-Ended
                    Dec. 30,      Dec. 31,    Dec. 30,      Dec. 31,
                      1995          1994        1995          1994

Net sales         $  29,766    $   29,051   $ 128,322    $  125,640
Cost of sales        25,898        26,416     109,403       104,202
Gross profit          3,868         2,635      18,919        21,438
Selling, general and
 administrative
 expenses             3,166         3,858      14,673        15,428
Income/(loss) from
 operations             702        (1,223)      4,246         6,010
Other income, (expense):
  Litigation settlement  --             9          --          (504)
  Interest expense     (599)         (479)     (2,296)       (1,566)
  Other income          178           201         702           753
Income/(loss) before
 income taxes           281        (1,492)      2,652         4,693
Provision for income
 taxes                  199          (778)      1,051         1,669
Net income/(loss)  $     82     $    (714)  $   1,601     $   3,024

Net income/(loss)
 per share         $   0.02     $   (0.14)  $    0.30     $    0.56

-0-

                          AEROVOX INCORPORATED
                       Consolidated Balance Sheets
                         (Amounts in thousands)

                                       Dec. 30,        Dec. 31,
                                         1995            1994

ASSETS

Current Assets:
     Cash                         $      573        $     102
     Accounts receivable, net         19,588           16,278
     Inventories                      22,630           19,895
     Prepaid expenses and other
      current assets                   1,073            1,225
     Deferred income taxes               885              997
          Total current assets        44,749           38,497
Property, plant and equipment,
 net of accumulated depreciation      41,251           37,101
Deferred income taxes                  2,290            1,752
Other assets                             401              409
          Total assets            $   88,691        $  77,759

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
     Accounts payable             $   11,270        $   9,986
     Accrued expenses                  3,339            3,294
     Current maturities of
      long-term debt                   3,205            2,292
     Income taxes                        508              484
          Total current liabilities   18,322           16,056
Deferred income taxes                  6,727            5,821
Industrial revenue bond                2,573            2,943
Long-term debt less current
 maturities                           25,132           18,705
Other liabilities                      1,072              818

Stockholders' equity:
     Common stock                      5,299            5,231
     Additional paid-in capital          769              592
     Retained earnings                29,488           27,887
     Foreign currency translation
      adjustment                        (691)            (294)
          Total stockholders' equity  34,865           33,416
          Total liabilities and
           stockholders' equity   $   88,691       $   77,759

CONTACT: Mary Mandeville

Manager, Communications

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