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CHEMDESIGN REPORTS SECOND QUARTER RESULTS

 CHEMDESIGN REPORTS SECOND QUARTER RESULTS
 FITCHBURG, Mass., July 20 /PRNewswire/ -- ChemDesign Corporation


(NASDAQ: CDCC) today announced sales for the quarter ended June 30, 1992, of $9.9 million, down 4.8 percent from the $10.4 million reported for the same period in 1991 and down 10.8 percent from the $11.1 million reported for the first quarter of this year.
 Net earnings for the second quarter of $94,000 or $.01 per share, were down from the $956,000, or $.11 per share, reported for the second quarter of 1991 but were up $62,000 over the $32,000 or break-even on a per share basis, reported for the first quarter of this year.
 Gross margin for the second quarter of 1992 of $2.1 million was down from $3.2 million reported for the same period in 1991 and level with the $2.1 million reported for the first quarter of this year. The gross margin rate decreased to 21.1 percent from the 30.6 percent reported for the second quarter of 1991, but increased from the 19.0 percent reported for the first quarter of this year.
 For the first half of the current year, the company reported sales of $21.1 million, down 5.4 percent from the prior year's record level of sales in the same period. Net earnings for the first half of 1992 of $126,000 or 1 cent per share, were off significantly from the $2.2 million, or 25 cents per share, reported in the first half of 1991.
 Richard E.T. Brooks, chairman and chief executive officer, commented: "We are pleased that the level of profitability in the second quarter increased over the first quarter. I am personally gratified by these results as they reflect our concerted effort to increase productivity while reducing expenses and were achieved in the context of a painfully slow national economic recovery. The sluggish national economy continues to affect our near-term profitability and that is as frustrating for all of us at ChemDesign as it is for our shareholders."
 Elaborating on Brooks' comments, Dr. Robert N. Eby, group vice president of operations, added: "We have made great strides in overcoming prior manufacturing difficulties as evidenced by our improved gross margin rate and smoother new product introductions completed in the second quarter. These introductions involved advanced materials, agricultural intermediates and a developmental pharmaceutical product. We have also implemented a number of staff and operational changes designed to help us avoid such problems in the future."
 Brooks concluded by noting: "We have completed new financings with the United States Trust Company and Massachusetts Capital Resource Company for an aggregate of $4 million to fund continuing construction on the third manufacturing facility in Fitchburg for anticipated completion by year end and to provide additional working capital. Both macro and micro economic factors dictate that we proceed prudently in the second half of the year, consistent with our overall 1992 plan. We will continue to balance short-term profitability with long-term growth."
 CHEMDESIGN CORPORATION
 Financial Summary
 Quarter Ended
 June 30, 1992 June 30, 1991
 Sales $9,927,000 $10,425,000
 Net income 94,000 956,000
 Earnings per share 0.01 0.11
 Average shares 8,908,000 8,913,000
 Six Months Ended
 June 30, 1992 June 30, 1991
 Sales $21,050,000 $22,242,000
 Net income 126,000 2,171,000
 Earnings per share 0.01 0.25
 Average shares 8,873,000 8,906,000
 -0- 7/20/92
 /CONTACT: Michael J. O'Donnell, vice president and chief financial officer, or Steve Borgeson, senior vice president and general counsel of ChemDesign, 508-345-9999/
 (CDCC) CO: ChemDesign ST: Massachusetts IN: CHM SU: ERN


TM -- NE011 -- 0884 07/20/92 16:03 EDT
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Date:Jul 20, 1992
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