CEM REPORTS RECORD SALES AND EARNINGS FOR SECOND QUARTER AND FIRST FISCAL HALF.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Jan. 19, 1995--CEM Corporation (NASDAQ/NM:CEMX) today announced record sales and earnings for the second fiscal quarter and six months ended December 31, 1994.

For the second quarter, net sales totaled $8.3 million, up 7% from $7.8 million in the year-earlier period. Net income for the second quarter of fiscal 1995 was up 13% to $885,000 compared with $781,000, and earnings per share were $0.24 on 3.7 million average shares outstanding versus $0.19 on 4.0 million average shares outstanding a year ago.

For the six months ended December 31, 1994, net sales were up 7% to $15.5 million compared with $14.5 million last year. Net income for the first half of fiscal 1995 was $1.5 million versus $1.3 million in the first half of fiscal 1994. Earnings per share amounted to $0.40 per share on 3.8 million average shares outstanding, an increase of 21% compared with $0.33 per share on 4.0 million average shares outstanding a year ago.

In announcing results, Michael J. Collins, President and Chief Executive Officer, said, "CEM's growth reflects higher overall demand from customers both in the United States and internationally. We are pleased with the sound year-to-year gains of 13% and 14% attained in net income for the second quarter and year-to-date, respectively. The higher profitability principally reflects the increased revenues which have more than offset the planned sales and marketing expenses associated with the new instruments introduced by CEM. Comparisons with a year ago also benefited from somewhat lower research and development expenses following the introduction a year ago of two major new systems."

Collins remarked, "Response to the concept and performance characteristics of the new MES-1000(TM) Microwave Extraction System has been very positive. We are still at an early stage for the contribution of this instrument to significantly impact our corporate results. We participated in a formal signing ceremony on January 18, 1995, in Ottawa, Canada, with the Canadian Deputy Prime Minister, acting on behalf of Environment Canada. The event was well attended, including ambassadors from several major countries. It finalized the previously announced license for CEM to integrate the Microwave Assisted Process (MAP(TM)) into applications for our MES-1000(TM) system. Key advantages to customers using the microwave extraction process include preparing samples in a significantly shorter time and sharply reducing the amount of solvent necessary to extract compounds from complex material such as soils, foods and polymers."

CEM manufactures microwave-based instrumentation for testing and analysis. The Company's products are used worldwide in the general analytical laboratory market, and in many manufacturing industries, including chemical and food processing.

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                         CEM CORPORATION
                      Financial Highlights

                              Three Months Ended
                                  December 31,
                               1994         1993       % Chg.
Net sales                   $8,332,000   $7,768,000       7%
Net income                  $  885,000   $  781,000      13%
Earnings per share          $     0.24   $     0.19      26%
Average shares outstanding   3,734,000    4,019,000      (7%)

                               Six Months Ended
                                  December 31,
                               1994         1993       % Chg.
Net sales                  $15,478,000   $14,503,000      7%
Net income                 $ 1,505,000   $ 1,319,000     14%
Earnings per share         $      0.40   $      0.33     21%
Average shares outstanding   3,752,000     4,035,000     (7%)

CONTACT: CEM Corp., Charlotte

Michael J. Collins, 704/821-7015