Chemfab Corporation announces second quarter fiscal 1995 earnings.

MERRIMACK, N.H.--(BUSINESS WIRE)--Jan. 26, 1995--Chemfab Corporation (OTC:CMFB) today announced results for its second quarter of fiscal year 1995.

CHEMFAB's worldwide sales for the thirteen weeks ended Jan. 1, 1995, the second quarter of fiscal 1995, increased 21 percent to $15,501,000 from $12,836,000 for the same quarter in the prior year. Measured in constant foreign currency exchange rates, the sales increase would have been 19 percent. Net income for the quarter was $1,144,000, or $.22 per share, compared with net income of $980,000, or $.19 per share, for the same quarter in the prior fiscal year.

For the twenty-six weeks ended Jan. 1, 1995, the first half of fiscal 1995, CHEMFAB's worldwide sales increased 20 percent to $29,223,000 from $24,277,000 for the same period in fiscal 1994. During this period, net income was $1,967,000, or $.37 per share, compared with net income of $1,698,000, or $.32 per share, for the first half of fiscal 1994.

Commenting on the results for the quarter, Duane C. Montopoli, CHEMFAB's President and Chief Executive Officer said, "We are very pleased by this sales and profit improvement for the quarter. Even without the revenues of Canton Bio-Medical (CBM), which was acquired in April 1994 and therefore not included in last year's results, sales increased 14 percent over sales for the same quarter in the prior year. This sales growth reflects solid performance by all of our business units, especially Chemfab Europe which continues to produce outstanding results."

"Profits, although solid for the quarter, were below expectations because of worse-than-expected results at CBM and at Nitto Chemfab, our Japanese joint venture company. CBM has not yet overcome its manufacturing inefficiencies and this adversely affected gross profit margins as well as the bottom line. Excluding the results of CBM, consolidated gross profit margins would have been 33 percent for the quarter instead of the reported 31 percent. Nitto Chemfab operated at a loss for the quarter of which our 39 percent share was $114,000."

Commenting on the outlook for remainder of the current fiscal year, Mr. Montopoli said, "Industrial product order entry and shipments continue to be strong and the outlook for architectural product sales continues to be good. We're working hard to improve manufacturing yields at CBM and to transform it into a profit contributor. Overall, our business is in excellent shape. For the second half of fiscal 1995, we continue to expect solid revenue growth and higher profitability."

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.

                           Chemfab Corporation
                          Financial Highlights

                                 Thirteen Weeks Ended
                                1/1/95       12/26/93

Net Sales                  $15,501,000    $12,836,000
Gross Profit                 4,755,000      4,142,000
Selling, General and
  Administrative Expenses    2,753,000      2,410,000
Research and Development       489,000        512,000
Other (Income) Expense         (57,000)        16,000
Interest Income, Net           (89,000)       (85,000)
Results of Equity Operations   114,000        (19,000)

Income Before Taxes          1,545,000      1,308,000
Provision for Income Taxes     401,000        328,000
Net Income                  $1,144,000       $980,000

Earnings Per Share               $0.22          $0.19

Weighted Average Common and
  Common Equivalent Shares   5,311,000      5,295,000

    -0-

                               Twenty-six Weeks Ended
                               1/1/95        12/26/93

Net Sales                 $29,223,000     $24,277,000
Gross Profit                9,118,000       7,771,000
Selling, General and
  Administrative Expenses   5,529,000       4,774,000
Research and Development      971,000         990,000
Other Income                  (63,000)       (135,000)
Interest Income, Net         (169,000)       (200,000)
Results of Equity Operations  137,000          16,000

Income Before Taxes         2,713,000       2,326,000
Provision For Income Taxes    746,000         628,000
Net Income                 $1,967,000      $1,698,000

Earnings Per Share              $0.37           $0.32

Weighted Average Common and
  Common Equivalent Shares  5,300,000        5,283,000

CONTACT: Chemfab

William H. Everett, 603/424-9000