Chemfab announces record fourth quarter and full year fiscal 1996 results.

MERRIMACK, N.H.--(BUSINESS WIRE)--Aug. 6, 1996--Chembfab Corp. (NASDAQ:CMFB) today announced that sales, net income and earnings per share reached record levels for its fourth quarter and full year ended June 30, 1996.

Net income for the fourth quarter was a record $2,521,000 or $.31 per share, compared with $2,026,000, or $.25 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 rose 7 percent to a record $22.7 million from $21.2 million in the fourth quarter of the prior year. Measured in constant foreign currency exchange rates, the sales increase would have been 8.5 percent.

For the full year ended June 30, 1996, net income reached a record $7,714,000, or $.94 per share, up from $5,310,000, or $.66 per share, for the preceding fiscal year. These per share amounts have also been adjusted to reflect the February 1996 stock split. Worldwide sales for the year increased 23 percent to a record $83.9 million from $68 million in the prior year. Measured in constant foreign currency exchange rates, the sales increase would have been 24.5 percent. Full year sales growth benefitted from a February 1995 business acquisition (Tygaflor).

Commenting on the results for the quarter and year, Duane C. Montopoli, Chemfab's president and chief executive officer said, "The company's fine fourth quarter performance caps off an outstanding year. As expected, the sales growth rate for the quarter slowed from earlier quarters in the year due to the full quarter inclusion of Tygaflor sales in the prior year's fourth quarter and because last year's fourth quarter was the strongest quarter in that year for architectural product sales. Nevertheless, reflecting the solid performance turned in by both our Americas and European Business Units, and the considerable earnings leverage within our business, the 7 percent sales gain for the quarter fueled a 24 percent increase in earnings per share. We ended the year in very strong financial condition having paid down the Tygaflor acquisition debt to $2.4 million and we expect to soon pay off this remaining amount."

Commenting on the outlook for fiscal 1997, Montopoli added, "The current outlook for industrial product and fabricated systems sales is quite good and, accordingly, we expect fiscal 1997 to be a year of solid financial performance. However, how good the year turns out relative to last year will depend, in part, on how strong architectural product sales are over the course of the year especially considering that fiscal 1996 was a record year for such product sales. Demand for architectural products is difficult to predict since related orders are often tied to the future and uncertain timing of large construction contract awards to our customers."

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 these 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 cyclical nature of demand in certain of the company's markets especially the architectural and radome markets, the timely introduction of new products and the market acceptance of those products, the impact of competitive products and pricing, and the uninterrupted availability of raw materials at reasonable prices. 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. These forward-looking statements represent the company's judgment as of the date of this release, and the company cautions readers not to place undue reliance on such statements.

Chemfab Corp. 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.

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                           CHEMFAB CORPORATION
                           FINANCIAL HIGHLIGHTS

                                    Quarter ended June 30,
                                      1996           1995

Net Sales                      $22,717,000    $21,247,000
Gross Profit                     7,931,000      7,106,000
Selling, General and
  Administrative Expenses        3,637,000      3,411,000
Research and Development           540,000        471,000
Other Expense                       36,000          4,000
Interest Expense, net               46,000        196,000
Results of Equity Operations            --        105,000

Income Before Income Taxes       3,672,000      2,919,000
Provision for Income Taxes       1,151,000        893,000
Net Income                      $2,521,000     $2,026,000

Earnings Per Share(a)                $0.31          $0.25

Weighted Average Common and
  Common Equivalent Shares(a)    8,244,000      8,049,000

(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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                                      Year Ended June 30,
                                     1996            1995

Net Sales                     $83,882,000     $67,980,000
Gross Profit                   28,109,000      21,856,000
Selling, General and
  Administrative Expenses      14,157,000      12,124,000
Research and Development        2,270,000       2,047,000
Other Expense (Income)             51,000        (111,000)
Interest Expense, Net             477,000          95,000
Results of Equity Operations           --         221,000

Income Before Income Taxes     11,154,000       7,480,000
Provision For Income Taxes      3,440,000       2,170,000
Net Income                     $7,714,000      $5,310,000

Earnings Per Share(a)               $0.94           $0.66

Weighted Average Common and
  Common Equivalent Shares(a)   8,199,000        7,991,000

(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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CONTACT: CHEMFAB CORPORATION

Moosa E. Moosa, 603/424-9000