CHEMFAB CORPORATION ANNOUNCES SECOND QUARTER FISCAL 1996 EARNINGS UP 50%.

MERRIMACK, N.H.--(BUSINESS WIRE)--Jan. 26, 1996--Chemfab Corporation (OTC:CMFB) today announced that second quarter earnings per share increased 50% over the same period in the prior year. The Company also announced that earnings per share for the first half of fiscal 1996 increased 57% over the comparable period a year ago.

Net income for the quarter, which ended December 31, 1995, was $1,821,000, or $.33 per share, compared with $1,144,000, or $.22 per share, for the same quarter a year ago. Worldwide sales for the quarter, which comparatively benefited from a February 1995 business acquisition, increased 35% to $20.9 million from $15.5 million in the second quarter of the prior year. The impact of changes in foreign currency exchange rates on reported revenue growth for the quarter was immaterial.

For the twenty-six weeks ended December 31, 1995, the first half of fiscal 1996, net income increased to $3,180,000, or $.58 per share, compared with $1,967,000, or $.37 per share, in the prior year. Worldwide sales for the first half of fiscal 1996, which also benefited from the aforementioned business acquisition, increased 35% to $39.4 million from $29.2 million in the same period a year ago. The impact of changes in foreign currency exchange rates on reported revenue growth for the first half was immaterial.

Commenting on the results for the second quarter and year to date, Duane C. Montopoli, Chemfab's President and Chief Executive Officer, said, "The Company continued to perform very well in the second quarter based on strong quarterly earnings in both our U.S. and European business operations. Our recently acquired Tygaflor business and strong architectural product sales contributed to our very strong earnings growth in the first half. We continue to expect the Company to generate record sales and earnings for the full fiscal year."

Chemfab Corporation is an international Company that develops, manufactures and markets polymer-based engineered products and materials systems for use in severe service environments. The Company's products typically consist of fiber-reinforced flexible composites, coated or laminated with fluoropolymers, and specialty fluoropolymer films. Worldwide end-use applications are in electronics, environmental, food processing, architectural, aerospace, communications, protective clothing, and other industrial markets.

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                           Chemfab Corporation
                          Financial Highlights

                                 Thirteen Weeks Ended
                              12/31/95         1/1/95

Net Sales                  $20,885,000    $15,501,000
Gross Profit                 6,942,000      4,755,000
Selling, General and
  Administrative Expenses    3,621,000      2,753,000
Research and Development       571,000        489,000
Other Expense (Income)          31,000        (57,000)
Interest Expense (Income), net  98,000        (89,000)
Results of Equity Operations         0        114,000

Income Before Taxes          2,621,000      1,545,000
Provision for Income Taxes     800,000        401,000
Net Income                  $1,821,000     $1,144,000

Earnings Per Share               $0.33          $0.22

Weighted Average Common and
  Common Equivalent Shares   5,474,000      5,311,000

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                               Twenty-six Weeks Ended
                             12/31/95          1/1/95

Net Sales                 $39,351,000     $29,223,000
Gross Profit               12,841,000       9,118,000
Selling, General and
  Administrative Expenses   6,882,000       5,529,000
Research and Development    1,116,000         971,000
Other Expense (Income)         30,000         (63,000)
Interest Expense (Income),
 net                          236,000        (169,000)
Results of Equity Operations        0         137,000

Income Before Taxes         4,577,000       2,713,000
Provision For Income Taxes  1,397,000         746,000
Net Income                 $3,180,000      $1,967,000

Earnings Per Share              $0.58           $0.37

Weighted Average Common and
  Common Equivalent Shares  5,446,000        5,300,000

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CONTACT: William H. Everett

Vice President

Finance and Administration

Chemfab Corp.

[phone]