Chemfab Corporation announces second quarter fiscal 1997 earnings up 18%.

MERRIMACK, N.H.--(BUSINESS WIRE)--Jan. 23, 1997--Chemfab Corporation (NASDAQ:CMFB) today announced that its second quarter earnings per share increased 18% over the same period in the prior year. Earnings per share for the first half of fiscal 1997 also increased by 18% over the comparable period a year ago.

Net income for the second quarter, which ended December 29, 1996, was $2,125,000, of $.26 per share, compared with $1,821,000, or $.22 per share, for the same quarter a year ago. Worldwide sales for the quarter increased 6% to $22.1 million from $20.9 million in the second quarter of the prior year. Measured in constant foreign currency exchange rates, the sales increase would have been 4%.

For the twenty-six weeks ended December 29, 1996, the first half of fiscal 1997, net income increased to $3,825,000 or $.46 per share, compared with $3,180,000 or $.39 per share in the prior year. Worldwide sales for the first half of fiscal 1997 increased 7% to $42.1 million from $39.4 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 of fiscal 1997 was immaterial.

Commenting on the results for the quarter, Duane C. Montopoli, Chemfab's President and Chief Executive Officer, said "Our U.S. and European industrial and fabricated product sales continue to be strong. Excluding architectural product sales, which as expected were down significantly from the levels of a year ago, worldwide sales for the quarter increased 17% over the prior year. Also, continuing the trend established in the first quarter, overall gross profit margins for the second quarter strengthened to 34%."

Commening on the outlook for the remainder of the fiscal year, Mr. Montopoli added, "The outlook for architectural product sales over the remainder of the fiscal year is improving, and industrial product order entry remains strong. Based on these factors, we continue to expect strong operating cash flows and solid performance, with record sales and earnings for the full fiscal year."

Chemfab Corporation is a world leader in the development, manufacturing and marketing of 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.

(Tables attached)

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NOTE: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties including, without limitation, the timely introduction of new products and the market acceptance of those products, and the impact of changes in currency exchange rates on sales and margins. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission, including those risks and uncertainties discussed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1996 in the section titled "Forward-Looking Statements". The forward-looking statements contained herein represent the Company's judgement as of the date of this release, and the Company cautions readers not to place undue reliance on such statements.

                           Chemfab Corporation
                          Financial Highlights

                              Thirteen Weeks Ended
                          Dec. 29, 1996  Dec. 31, 1995

Net Sales                  $22,127,000    $20,885,000
Gross Profit                 7,458,000      6,942,000
Selling, General and
  Administrative Expenses    3,832,000      3,621,000
Research and Development       663,000        571,000
Other (Income) Expense        (111,000)        31,000
Interest (Income) Expense, net (47,000)        98,000

Income Before Taxes          3,121,000      2,621,000
Provision for Income Taxes     996,000        800,000
Net Income                  $2,125,000     $1,821,000

Earnings Per Share (a)           $0.26          $0.22

Weighted Average Common
 and Common Equivalent
 Shares (a)                  8,246,000      8,211,000


                              Twenty-six Weeks Ended
                          Dec. 29, 1996   Dec. 31, 1995

Net Sales                 $42,065,000     $39,351,000
Gross Profit               14,205,000      12,841,000
Selling, General and
  Administrative Expenses   7,516,000       6,882,000
Research and Development    1,225,000       1,116,000
Other (Income) Expense       (132,000)         30,000
Interest (Income) Expense,
 net                          (18,000)        236,000

Income Before Taxes         5,614,000       4,577,000
Provision For Income Taxes  1,789,000       1,397,000
Net Income                 $3,825,000      $3,180,000

Earnings Per Share (a)          $0.46           $0.39

Weighted Average Common and
  Common Equivalent
  Shares (a)                8,248,000       8,169,000

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(a) Prior year amounts have been adjusted to reflect the Company's
three-for-two stock split in February 1996.

CONTACT: Moosa E. Moosa

Vice President - Finance and Administration

CHEMFAB CORPORATION

701 Daniel Webster Highway

P.O. Box 1137

Merrimack, New Hampshire 03054

[phone]