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CARMEL CONTAINER SYSTEMS LTD. REPORTS RESULTS FOR THE YEAR ENDING DEC. 31, 1992

 TEL AVIV, Israel, March 8 /PRNewswire/ -- Carmel Container Systems Ltd. (AMEX: KML), a leading Israeli designer and manufacturer of containers, packaging materials and related products, reported today its consolidated financial results for the year ended Dec. 31, 1992. Carmel's ordinary shares are traded on the American Stock Exchange.
 The 1992 operations resulted in net income of New Israeli Shekels (NIS) 117,000 ($43,000) as compared to a profit of NIS 3,259,000 in 1991. Income per share for 1992 was NIS 0.05 ($0.02) as compared to an income per share of NIS 1.30 in 1991. Revenues, gross profit and operating income decreased in 1992 as compared to 1991. The 1992 financial results were affected primarily by the following factors: (i) the creation of a reserve in the amount of NIS 3,657,000 ($1,323,000) for expenses incurred in connection with the company's reorganization plan (the "plan") for the production system in its largest corrugated carton plant; (ii) although unit sales of corrugated products remained stable, sales prices decreased causing deterioration in the business results relating to corrugated products; (iii) financial expenses for the third quarter of 1992 relating to the company's foreign currency liabilities increased significantly as a result of the rate of devaluation of the NIS against the U.S. dollar (21.1 percent in 1992) as compared to the rate of inflation (9.4 percent in 1992); and (iv) Ofek Paper Products Ltd., a non-consolidated subsidiary, continued to experience losses in 1992.
 Revenues for 1992 were NIS 199,984,000 ($72,353,000) as compared to NIS 201,725,000 for 1991. The consolidated sales figures include the revenues of Tri-Wall Containers (Israel) Ltd. beginning in May 1991.
 Gross profit for 1992 amounted to NIS 36,598,000 ($13,241,000) as compared to NIS 36,776,000 in 1991. Gross profit margin for 1992 was 18.3 percent of sales as compared to 18.2 percent in 1991.
 Income from operations in 1992, before taking into account the expenses associated with the plan, was NIS 16,482,000 ($5,963,000) as compared to NIS 16,828,000 in 1991, which figures represented 8.2 percent and 8.3 percent of revenues from sales in 1992 and 1991, respectively. At the end of 1992, the company set aside a reserve of NIS 3,657,000 ($1,323,000) for expenses associated with the plan. Income from operations after taking into account such reserve was NIS 12,825,000 ($4,640,000), representing 6.4 percent of revenues from sales, as compared to income and revenue from sales of NIS 16,737,000 and 8.3 percent, respectively, in 1991.
 The accelerated rate of devaluation of the NIS against the U.S. dollar in 1992, as compared to such rate in 1991, caused a substantial increase in financial expenses, which amounted to NIS 10,142,000 ($3,669,000) in 1992 as compared to NIS 8,934,000 in 1991. Financial expenses in 1992 were 5 percent of sales, as compared to 4.4 percent in 1991.
 Income before taxes in 1992 was NIS 2,945,000 ($1,065,000). The company's share in losses of its non-consolidated subsidiaries in 1992 was NIS 1,514,000 ($548,000), as compared to NIS 1,203,000 in 1991.
 In 1992 the company's cash flow was NIS 14,419,000 ($5,216,000) (NIS 10,856,000 in 1991) and was primarily utilized to decrease the company's long-term and short-term financial indebtedness in the amount of NIS 11,699,000 ($4,233,000) (NIS 3,388,000 in 1991) and to invest in equipment and other assets in the amount of NIS 3,439,000 ($1,244,000) (NIS 6,562,000 in 1991).
 All amounts set forth herein in NIS have been adjusted to reflect changes in the Israeli Consumer Price Index through Dec. 31, 1992. The translation of NIS amounts into U.S. dollars is at the rate of exchange of NIS 2.7640 to $1.
 -0- 3/8/93
 /CONTACT: Yoram Shetrit of Carmel, in Tel Aviv, 011-972-3-491423; or David P. Stone, in New York, 212-310-8430, for Carmel/
 (KML)


CO: Carmel Container Systems Ltd. ST: IN: PAP SU: ERN

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Date:Mar 8, 1993
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