Chemfab Corporation announces third quarter fiscal 1996 earnings up 50 percent.

MERRIMACK, N.H.--(BUSINESS WIRE)--April 25, 1996--Chemfab Corporation (OTC:CMFB) today announced that its third quarter earnings per share increased 50 percent over the same period in the prior year. The company also announced that earnings per share through the first nine months of the fiscal year increased 54 percent over the comparable period a year ago.

Net income for the third quarter, which ended March 31, 1996, was $2,013,000, or $.24 per share, compared with $1,317,000, or $.16 per share, for the same quarter a year ago. Prior year's earnings per share have been restated to reflect the 3 for 2 stock split which occurred in February of this year. Worldwide sales for the quarter, which comparatively benefitted from a February 1995 business acquisition, increased 25 percent to $21.8 million from $17.5 million in the third quarter of the prior year. The impact of changes in foreign currency exchange rates on reported revenue growth for the quarter and year-to-date was immaterial.

For the nine months ended March 31, 1996, net income was $5,193,000, or $.63 per share, up from $3,284,000, or $.41 per share, for the comparable period in the preceding fiscal year. These per share amounts have also been adjusted to reflect the February 1996 stock split. Year-to-date worldwide sales increased 31 percent to $61.2 million from $46.7 million in the prior year.

Commenting on the results for the third quarter, Duane C. Montopoli, Chemfab's President and Chief Executive Officer said, "Chemfab's third quarter performance was outstanding. Since Tygaflor joined the Chemfab group halfway through last year's third quarter, its full quarter inclusion this year, as well as its continuing strong post-acquisition performance, contributed importantly to our 25 percent sales growth. Additionally, substantial sales gains were posted by our Americas Business Unit, our European Business Unit aside from Tygaflor, and our Architectural Products Group. Also, reflecting the considerable earnings leverage within our business, the 25 percent increase in total sales powered a 50 percent increase in earnings per share."

Commenting on the outlook for the remainder of the fiscal year, Mr. Montopoli added, "Fourth quarter sales growth will naturally moderate due to the full quarter inclusion of Tygaflor sales in last year's comparable quarter. Also, last year's fourth quarter was the strongest quarter in that year for architectural product sales. Nevertheless, earnings per share for this year's fourth quarter are expected to show solid improvement over last year, resulting in record 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.

                           Chemfab Corporation
                          Financial Highlights

                                 Thirteen Weeks Ended
                              03/31/96        04/02/95

Net Sales                  $21,814,000    $17,510,000
Gross Profit                 7,337,000      5,632,000
Selling, General and
  Administrative Expenses    3,638,000      3,184,000
Research and Development       614,000        605,000
Other Expense (Income)         (15,000)       (52,000)
Interest Expense (Income), Net 195,000         68,000
Results of Equity Operations         0        (21,000)

Income Before Taxes          2,905,000      1,848,000
Provision for Income Taxes     892,000        531,000
Net Income                  $2,013,000     $1,317,000

Earnings Per Share               $0.24 (a)      $0.16 (a)

Weighted Average Common and
  Common Equivalent Shares   8,250,000 (a)  8,001,000 (a)

(a) All reported share data has been adjusted to reflect the
company's 3 for 2 stock split in February 1996.

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                   Chemfab Corporation
                   Financial Highlights

                              Thirty-nine Weeks Ended
                             03/31/96         04/02/95

Net Sales                 $61,165,000     $46,733,000
Gross Profit               20,178,000      14,750,000
Selling, General and
  Administrative Expenses  10,520,000       8,713,000
Research and Development    1,730,000       1,576,000
Other Expense (Income)         15,000        (115,000)
Interest Expense (Income),
 Net                          431,000        (101,000)
Results of Equity Operations        0         116,000

Income Before Taxes         7,482,000       4,561,000
Provision For Income Taxes  2,289,000       1,277,000
Net Income                 $5,193,000      $3,284,000

Earnings Per Share              $0.63 (a)       $0.41 (a)

Weighted Average Common and
  Common Equivalent Shares  8,191,000 (a)    7,965,000 (a)

(a) All reported share data has been adjusted to reflect the
company's 3 for 2 stock split in February 1996.

CONTACT: Chemfab Corporation

William H. Everett, 603/424-9000