C.P. Clare Announces Third Quarter Fiscal 2000 Results.

Business/Technology Editors

BEVERLY, Mass.--(BUSINESS WIRE)--Jan. 20, 2000

C.P. Clare Corporation (NASDAQ:CPCL), announced today revenues of $21.6 million and losses per share of $0.23 for the third quarter of fiscal 2000.

For the quarter ended December 26, 1999, net sales were $21.6 million compared with $37.2 million for the quarter ended December 27, 1998. Excluding revenues from electromagnetic products, which were sold during August of 1999, sales during the comparable period would have been $23.6 million. The Company had net losses of $2.2 million ($0.23 per share) compared with income of $0.1 million ($0.01 per share) for the same period last year.

For the nine months ended December 26, 1999, net sales were $86.6 million compared with $107.8 million for the same period last year. Excluding revenues from electromagnetic products, sales during the comparable period would have been $64.3 million. The Company had net income of $7.6 million ($0.78 per share) for the nine months ended December 26, 1999, compared with a loss of $5.9 million ($0.63 per share) for the nine months ended December 27, 1998. Excluding the gain from the sale of the electromagnetics business, the Company had a net loss of $5.4 million, or $0.57 per share.

&uot;Margins in our solid state relay business continue to be impacted by pricing pressures and underutilization of our fab. As a result, current results remain disappointing,&uot; said Arthur R. Buckland, President &CEO. &uot;We continue to make progress in our transformation of the company. We are intensely focused on aggressive development of new products and have achieved several key milestones. We remain optimistic that continued successful execution and investment in new technology will lead to improved results in the future.&uot;

C.P. Clare Corporation is a leader in the design and manufacture of high-voltage analog circuits. The Company's products enable communications by providing the critical interface between high-voltage electrical signals and the low-voltage electronics that process those signals. Leading manufacturers of data communications, telecommunications and industrial equipment around the world rely on C.P. Clare for semiconductors and specialized electronic components. C.P. Clare trades on the NASDAQ exchange under the symbol CPCL. The Company is headquartered in Beverly, Mass., and has sales locations around the world with primary offices in Hasselt, Belgium; Taipei, Taiwan; and Tokyo, Japan. Information about C.P. Clare and its products is available at 978-524-6700 or on the Internet at http://www.cpclare.com.

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements as defined under the federal securities laws. Actual results could differ materially from the information set forth herein and there is no assurance that any anticipated future results will be achieved.

C.P. CLARE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (dollars in thousands)

                      ASSETS                      Dec. 26,    Dec. 27,
                                                     1999        1998

Current assets:
  Cash, cash equivalents and investments          $ 33,422    $  4,153
  Accounts receivable, less
   allowance for doubtful accounts                  14,579      19,896
  Inventories                                       12,615      23,107
  Other current assets                               8,079       6,671
        Total current assets                        68,695      53,827

Property, plant and equipment, net                  26,988      41,205
Other assets, net                                    9,778      12,400
                  Total assets                    $105,461    $107,432


LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities                                 11,171      21,326
Long-term liabilities                                  175         318
     Total liabilities                              11,346      21,644

Stockholders' equity                                94,115      85,788
Total liabilities and stockholders' equity        $105,461    $107,432




C.P. CLARE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)


                            Three Months Ended      Nine Months Ended
                           Dec. 26,    Dec. 27,    Dec. 26,   Dec. 27,
                             1999        1998        1999       1998

Net Sales              $    21,617 $    37,248 $    86,590    107,829
Cost of Sales               15,748      27,174      67,472     77,401

  Gross profit               5,869      10,074      19,118     30,428

Operating expenses:
   Selling, general and
    administrative           5,005       7,498      17,689     21,187
   Research and development  3,500       2,292      10,162      6,658
   Restructuring costs        --          --          (875)     4,000
   In-Process R &D           --          --          --        5,000
   Gain On Disposal of
    Business Activites,
    Net of Related
    Restructuring and
    Other Costs               --          --       (12,990)       --

  Operating (loss) income   (2,636)        284       5,132     (6,417)

Other income, net              406        (133)        752         28

  Income (loss) before
   (benefit) provision for
   income taxes             (2,230)        151       5,884     (6,389)
Provision (benefit) for
 income taxes                 --            60      (1,702)      (480)

   Net income (loss)        (2,230)         91       7,586     (5,909)

Basic earnings (loss)
 per share                   (0.23)       0.01        0.80      (0.63)

Diluted earnings (loss)
 per share                   (0.23)       0.01        0.78      (0.63)

Weighted average number
 of common shares
 outstanding:

Basic                    9,522,942   9,394,942   9,496,522  9,382,806

Diluted                  9,522,942   9,560,656   9,666,471  9,382,806