CMCI reports net sales of $42.9 million, earnings per share of $.05 for third quarter.

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 20, 1996--CMC Industries, Inc. (NASDAQ: CMCI) today announced its results for the third fiscal quarter and nine months ended April 30, 1996.

For the third quarter ended April 30, 1996, the Company's net sales were $42,944,000, a 28% increase over sales of $33,511,000 for the quarter ended April 30, 1995. Quarterly net income amounted to $300,000, or $.05 per share, compared to a net loss of $1,118,000, or $.18 per share, for the same quarter of the prior year.

For the nine months ended April 30, 1996, the Company's net sales were $123,334,000, a 11% increase over sales of $110,699,000 for the nine months ended April 30, 1995. The Company reported a net loss of $375,000, or $.06 per share, for the first nine months of FY96, as compared to net income of $433,000, or $.07 per share, during the comparable prior period. The FY96 results include the effect of restructuring charges of $792,000 taken in the first quarter.

"We are pleased with the 28% year over year growth in sales," commented Matt Landa, President and Chief Executive Officer of CMC Industries. "The growth and the sequential improvement in gross margin from 6.0% in our January quarter to 6.5% this quarter can be attributed to improvements in operations and the acquisition of new customers during the first part of fiscal year 1996. These improvements highlight the progress made to date in our strategic transition toward customers whose products utilize advanced manufacturing processes."

CMC Industries also announce that, during the quarter, the Company's Corinth, Miss. facilty received ISO 9002 certification, a reflection of improved process and qualiy controls instituted in the operation. All facilities for CMC are now ISO 9002 compliant, representative of the Company's continued focus on delivering the highest quality products for its customers.

The matters set forth in this news release may contain forward looking statements. Actual results may differ materially from these and are dependent on certain risks and uncertainties including, but not limited to, business conditions in the general economy, changes in customer mix and volume, component availability, and other risk factors such as those detailed in the Company's SEC reports.

Headquartered in Santa Clara, Calif., CMC Industries is a leading provider of contract manufacturing services to original equipment manufacturers in the telecommunications, computer and electronics industries. The Company has manufacturing operations in Corinth, Miss. and Santa Clara, Calif. -0-

                       CMC Industries Inc.
              Condensed Consolidated Balance Sheets
                         (In thousands)
                            Unaudited

                                  April 30, 1996  July 31, 1995
ASSETS
Current assets
 Cash and cash equivalents           $    248        $     89
 Accounts receivable, net              27,869          24,159
 Inventories                           23,908          26,006
 Other current assets                     751           1,712
  Total current assets                 52,776          51,966
Plant and equipment, net                9,280           7,042
Other assets                            6,978           6,956
                                     --------        --------
                                     $ 69,034        $ 65,964

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
 Short-term debt                     $ 11,101        $ 11,910
 Accounts payable and other current
  liabilities                          23,815          18,317
  Total current liabilities            34,916          30,227
Long-term liabilities                   6,134           7,399
 Total Liabilities                     41,050          37,626
 Total Stockholders' Equity            27,984          28,338
                                     --------        --------
                                     $ 69,034        $ 65,964

                       CMC Industries Inc.
           Condensed Consolidated Statements of Income
              (In thousands, except per share data)
                            Unaudited

                       Three Months Ended       Nine Months Ended
                            April 30,                April 30,
                        1996         1995        1996         1995

Net sales             $42,944      $33,511    $123,334     $110,699
Cost of sales          40,155       33,945     115,966      104,549
Gross profit            2,789         (434)      7,368        6,150
Selling, general
 and administrative
 expenses               1,899        2,000       5,973        5,316
Nonrecurring charges
 for restructuring          0            0         792            0
Operating income
 (loss)                   890       (2,434)        603          834
Interest expense,
 net                      403          453       1,178        1,222
Income (loss) before
 income taxes             487       (2,887)       (575)        (388)
Provision (benefit)
 for income taxes         187       (1,769)       (200)        (821)
Net income (loss)     $   300     $ (1,118)    $  (375)     $   433
Net income (loss)
 per common share     $  0.05     $  (0.18)    $ (0.06)     $  0.07
Weighted average
 shares outstanding     6,377        6,258       6,313        6,255

CONTACT: CMC Industries, Inc.

Lanny M. Lambert, 601/287-3771, ext. 170